So much of what you learn about pricing focuses on the external market.
But in the daily practice of being an entrepreneur, much of the confusion and angst about pricing comes from an inner feeling.
Mark Silver, co-founder of Heart of Business, has a very unique perspective on the inner game of pricing which is specifically tied to the spiritual side of business. In addition to being a long-time business coach, he is also a Sufi teacher and healer.
Listen to our 40 minute conversation here.
Mark covers a very interesting exercise which he terms “resonant pricing.” My good buddy Havi Brooks wrote a wonderful post about this exercise where she gives a specific example of how she applied it to a program she was launching with Naomi Dunford from Ittybiz. Read her example here.
Even if you pride yourself on having an extremely well-formed left-brain muscle, I invite you experiment with some of Mark’s wonderful teaching.
Mark explains resonant pricing in a detailed post called The Wackiness of Resonant Pricing which includes a PDF with instructions. I used in on a group coaching call for KickAss Mentoring the other night and we got a lot out the exercise.
Find Mark at HeartofBusiness.com.
Up tomorrow for the pricing series: Ramit Sethi from I Will Teach You to be Rich who will share all kinds of juicy lessons for moving from totally free blog content to well-priced products and services.
[…] So far this week, we have learned about the big picture of pricing in small business from John Jantsch, and tips on the inner game of pricing from Mark Silver. […]
I loved so many things about this interview.
One that stands out in my mind at the moment is the fact that once you find your resonant price you will be much more comfortable charging for it, presenting it, explaining it and defending it when needed.
So many things in our culture urge us to be sheep and simply follow the ringing bell. This process encourages us to be still, be quiet and listen for our own internal sound track.
Kudos for bringing a different approach to the table and for getting me to think about this topic in a broader perspective.
[…] more tips on Resonate pricing, Pam Slim has an excellent round-up here, including posts from Mark Silver of Heart of Business, and Naomi Dunford of Itty […]
Thanks for the interview. I enjoyed listening to this perspective as it is not the advice that is usually given. It’s an extremely useful framework to to mitigate between external and internal factors.
This was so useful! Thank you both, Pam and Mark, for sharing this approach to pricing. I love the idea. Interestingly enough, it’s both a more personal and a less personal approach–it takes away the idea of being “worthy” of a price (making it less personal) and it brings in a relationship with our heart (making it more personal).
I’ve been recently thinking about money as an ‘energetic exchange,’ and this idea of heart resonance with pricing really links in with that concept. I immediately thought about things that I don’t think to be “worth it” when it comes to price (like a gorgeous pair of leather boots for $200), and now I understand why: because it doesn’t resonate with my heart. Again, making it both less personal and more personal at the same time, and in such a good way, for both things like boots and charging for my services.
Thanks so much for sharing!
[…] Jantsch from Duct Tape Marketing Mark Silver from Heart of Business Ramit Sethi from I Will Teach You to Be Rich Andrea J. Lee from Thought Partners International LLC […]
[…] Jantsch of Duct Tape Marketing Mark Silver of Heart of Business Ramit Sethi of I Will Teach You to be Rich Andrea J. Lee of Thought Partners International AKPC_IDS […]
Pricing based solely on inner feelings that ignores a fair market rate is in part responsible for the bubble that lead to the current economic recession.
This kind of methodology largely justifies infinite increases in rates for coaches and consultants, something complained about widely in our industry.
While many new coaches and consultants underprice their services, overpricing is no solution–just the same coin, different side.
There is no reason why we can’t feel comfortable charging a fair market rate and delivering quality service. This is the inner work of pricing, in my opinion.
Thanks for your thoughts Duff!
One of the reasons I am doing this series is to present a lot of different perspectives on pricing, realizing that not all will fit for everyone.
Personally, in my (albeit short) experience with resonant pricing, I found that I settled on prices that not only felt good to me, but also fit well within the outside market. In my own field, I get pressure sometimes to hugely crank up my prices. That doesn’t feel very good to me, since gigantic fees are not in alignment with my values or market.
I have had experiences of under charging for some services that had nothing to do with the external market and more to do with my own lack of confidence doing something new.
The thing about pricing is that the market always participates. So if you are way off, either you won’t sell anything, you will go broke, or your customers will tell you that your value is not in line with your pricing.
Having known many of Mark’s clients over the years, they are exceptionally happy with the service he provides as well as the results they achieve with his counsel.
That said, if the approach doesn’t work for you, don’t use it. 🙂
Thanks for stopping by!
Duff, I know what you’re saying. I actually asked Mark Silver about this, to his face, last year. He pointed out that there can be several resonant prices. You might find that a certain number feels really right but doesn’t realistically correspond to anything you’re actually selling. That could be a hint–emotionally, spiritually, intuitively, whatever you want to call it–that maybe you need to develop a product or service that suits that price level.
I’ve found that the concept of Resonant Pricing helps a lot with a complex project that might cost tens of thousands of dollars. It’s one thing to present a dollar amount to the client, but it’s another thing entirely to feel that the amount is “just right.” I don’t feel like hedging or apologizing for the price the way I used to sometimes.
Bottom line, though, I agree with your statement that the key is to deliver something really valuable and to request fair payment in return for it. You could play games with pricing all day, but having an outstanding product or service is essential!
.-= Mark W Schumann´s last blog ..Access: Why not? =-.
Actually, Duff, I find that the resonant price approach is a fantastic antidote to the wildly inflated overcharging that can happen. When one is in touch with one’s humility and service, and surrenders to the what they really connect with in their heart, sometimes the price is higher, but sometimes it’s lower, too.
Plenty of people have down this exercise and come to a lower price and are, as Pam explained, able to reject the pressure to go sky-high with prices.
In the full description of the exercise as I teach it, it’s about coming into alignment with one’s heart and with the larger sense of goodness, not just trying to grab everything you can. The heart wants to be small, to be in service, to be humble.
Heart-centered resonant pricing reflects this. It’s actually what helped us lower our prices this year on some of our classes.
.-= Mark Silver´s last blog ..Social Media Freeze Up =-.
Liked this post a lot
Keep them coming
It’s so interesting how we talk ourselves out of a pricing strategy that might be more profitable for our business. This reminds interesting book I just read by Chris Anderson it’s called FREE the future of a radical price. And believe it or not the book is actually free on audible.com.