I had one of those shifts, light bulb moments yesterday. I sat down to wrap up my 2017 financials and there, at the end of my Quickbooks report (and Excel spreadsheet, because I love Excel), it was there! Proof.
Proof that I tripled my income from last year. Now, I am not saying this to be boastful or fishing for compliments, I am saying this because I set a goal, worked my steps every week and every month and …BOOM. No matter how big or small the goal is, it’s totally accomplishable if you do the baby steps. As long as we don’t let in the negative self talk, crutches we use to not do the work – “like there is so much competition, etc.”
Goal box – checked!
I am not saying getting there was easy, but I had a goal, planned out what I thought I might need to do to get there and just started doing it.
And that is what I want for you – whatever “the goal “is for you, I want you to lay the roadmap and start walking your walk. And if you need help, well that is what the Business of Makeup® courses are for.
But one of the biggest mindset tweaks for me, besides saying NO a lot, was the concept of Commodity Pricing. Don’t glaze over yet. I am reading this book by Russell Brunson on a completely different topic, but I think he hits the nail on the head. When we are stuck in red ocean of competition –competing with other MUAs selling similar options, this competition turns you into a commodity and pushes the overall pricing of the ocean down. And in a flash, it becomes a race to the bottom … in terms of Pricing. It’s the race of who is the cheapest. (Isn’t this what we are seeing with FB postings about full face makeup and lashes for $25).
I have been actively working on my pricing mindset shift for years. I get lots of people tell me “well the day rate in SD is “X” so you are never going to work at your rate.” I politely remind them I am working daily at my rate and I completely understand if you go in another direction.
But it’s not always easy! Sometimes it’s really hard to sick to your guns. And sometimes, very rarely, there are reasons and opportunities to cave – a bit.
But as Brunson mentions in his book a friend of his Dan Kennedy explained commodity pricing as “If you can’t be the #1 lowest price leader in your market, there is no strategic advantage to being #2 lowest price leader.” Essentially, if you are not the cheapest, be the most expensive … Or at least on the higher end and get out of that red ocean of sharks. Attract the clients that love you for your work – regardless of the price.
As I have made this mental shift over the years, I can attest to the fact that the financial numbers just keep going up and up and with this new financial business revelation, I can assure you it is because of this mental shift.
I realize the reason we do what we do is not always about money – it isn’t for me. But I do know that money is what allows us to do what we do, so we need to respect it’s importance.
Now I am not telling you should quadruple your pricing and wait for your clients to flock in. NO. But I do think you should be doing some research, get super clear on your market and your financials… how much is costs you to run your business, how much you need to cover each month to break even, figure out how you are going to pay yourself and put money away in savings (oh ya I teach you how to do this in the Business of Makeup® courses). And shift your mindset to value yourself, not devalue yourself.
I say this in motivation. I say this to keep setting those mini goals to reach the BHAG (Big Harry Audacious Goal) you have been dreaming about. It’s time.