Posted by Dave Lorenzo - Business Coach

When I first began to work in consulting I used to hear everyone talk about “positioning”.  I had no idea what positioning meant.  I just knew that the thought leaders (gurus, smart guys and girls) kept talking about it.

What I didn’t know I learned quickly.  And I am re-learning that lesson now.

While I still have a full complement of clients at Gallup, I have started a small coaching practice that helps entrepreneurs grow their businesses.  In starting this business, I planned to work with a handful of really good clients – maybe 5–10 total.  I thought that I could position myself to the market based upon the prices I would charge for my services.  I set my fees for 2 separate one-on-one sessions at $500 per month and I figured I would pick up a couple of clients here and there.

Can you guess what happened?

Yep.  Lots of clients. Pricing was too low.  It communicated that I was a bargain.  I know because I asked all of my new clients what they thought of my fees. One of my new clients summed it up best by saying:  “They’re great –  how else could I afford to work with a business coach who has written a book and has an Ivy League degree? You cost less than my car payment.” 

Ouch.  I’m definitely under priced.

I’m now working diligently (and quickly) to change my business model to accommodate all of the clients that have requested my services and I’m looking at ways to make my one-on-one coaching more exclusive. 

I re-learned a lesson I teach my clients all the time:  We always undervalue our own ability.

Stay tuned for more updates on this work in progress…

Filed under: Entrepreneurship - General
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