The Emotional Dynamics of Pricing in Small Business Consulting
In the world of small business, the emotional component of pricing can often be overlooked. Recently, I had a conversation with a restaurant owner that shed light on just how crucial proper pricing is for sustaining a company’s health. After a decline in sales and a chaotic financial situation, she reached out to me in a state of distress. The prospect of selling her business loomed large, yet she lacked the clean financial documentation needed to even apply for credit.
During our call, I took the opportunity to listen attentively to her concerns, which is an essential strategy for building rapport in any consultative role. Sometimes, it feels like you’re stepping into the role of an unqualified therapist, simply providing a space for someone to voice their worries.
In her case, the need for up-to-date financial records was about more than just practicality; it was about the emotional stakes at play. She was standing at a crossroads that would determine whether she could keep her business afloat or prepare it for sale. This reminded me that behind every business discussion is a person with hopes, fears, and significant investment—both emotional and financial.
As I assessed her financial records, I recognized the severity of the situation. The combining of personal expenditures with business transactions had created an urgent, complex mess. I was acutely aware that rectifying this wouldn’t be a quick fix, yet I needed to avoid pricing her out of the project while also ensuring that I didn’t underquote and end up overburdened.
To establish a fair price, I turned to a pricing worksheet that helps me remain grounded in my evaluations (I’ll share the link in the comments). I crafted a proposal for $4,200, anticipating some negotiation. Instead, she promptly signed the agreement and expressed that it was the first moment in months she felt a sense of relief regarding her business concerns.
This experience affirmed a critical lesson: when clients genuinely feel understood and their pain points acknowledged, the price becomes secondary. They seek a trusted partner to resolve their issues—especially if they have the means to pay for that expertise.
I’ve learned the hard way that underpricing valuable work can lead to complications. It’s all too easy to assume a task will take a certain number of hours; however, the value lies in resolving the client’s problem and helping them regain control over their enterprise. Furthermore, unexpected challenges are always part of the equation, particularly for those of us with a few years
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