The Kate Show – Episode 283: Pricing Strategies – and Why You Need One
Host: Kate (Socialite Agency)
Date: June 2, 2025
Main Theme & Purpose
In this episode, Kate dives into the often-avoided subject of pricing—not to tell you what to charge, but to help you understand how to create and apply a suitable pricing strategy for your service-based business. She explores common pitfalls and misconceptions, effective pricing strategies, and actionable advice for interior designers, home stagers, organizers, and window treatment specialists to improve not just revenue but client relationships and business perception. Kate’s focus is on the marketing side of pricing, explaining how your pricing strategy is a core part of positioning your brand—and why “just picking a price” isn’t enough.
Key Discussion Points & Insights
What is a Pricing Strategy? (03:30)
- Definitions from Paddle.com and The House of Marketing.
- Core insight: Pricing is a “key component of a company’s marketing plan and can have significant impact on company’s revenue, profitability, and overall success.” (04:10)
- Factors considered: competitor prices, target market’s willingness to pay, production costs, and product positioning.
“Pricing is the most underrated marketing tool in terms of profitability. It plays a key role in determining the success or failure of a product or service in the market.”
— Kate quoting The House of Marketing, 04:15
- Positioning (Target vs. Gucci analogy): Many service providers accidentally make themselves the “Target” brand rather than the “Gucci,” thereby missing out on high-value clients.
Bad Pricing Strategies to Avoid (05:45)
Kate candidly details eight harmful pricing approaches, explaining why each undermines your business.
1. Discounts & Sales (05:50)
- Running frequent sales attracts only "cheap" customers and trains clients to wait for deals.
- “Discounts only attract cheap people.” (05:55)
2. Free Consultations (07:15)
- Offering free advice devalues your expertise and wastes your time.
- “Free and consult should never go together in the same sentence.” (07:26)
3. Fake Sales (08:39)
- Claiming discounts without actual price reductions erodes trust.
- “That's so slimy. And please don't fall into that trap because people will quickly learn not to trust you.” (08:45)
4. Too Many Packages/Options (09:28)
- Overwhelms and confuses clients.
- “If you are offering three packages but you have two different pricing plans for each one, two times three is six. Now you’re offering six packages. That’s overwhelming.” (09:43)
- Keep package choices to a maximum of three.
5. Competitor-Based Pricing (11:18)
- Chasing competitors’ prices leads to a “race to the bottom.”
- “If our focus is on our competitors instead of on our ideal clients, we’re not going to get the clients.” (11:26)
6. Dynamic Pricing (12:10)
- Raising prices due to market demand is viewed as price gouging in personal services.
- “Dynamic pricing… It’s so wrong. That is so bogus, so don’t do that.” (12:34)
7. Pay-What-You-Want (13:08)
- Surrenders control of perceived value and leads to unprofitable outcomes.
- “You are allowing your client to decide how much something is worth… You are giving up control of perceived value at that point.” (13:18)
8. Predatory Pricing (14:01)
- Setting unsustainably low prices to drive out competitors, only to raise prices later.
- “It is not a long-term strategy. The truth is those companies will not always charge so little. They're just trying to get you out of the picture first.” (15:22)
Good Pricing Strategies (16:13)
1. Flat Rate Fee (16:19)
- Transparent, sets clear expectations, weeds out unfitted leads early.
- “Flat rates for pretty much everything… I want to make sure I am vetting my leads… If they’re not my client, I don’t want to waste my time or their time.” (16:32)
2. ‘Starting At’ Price (17:37)
- Sets a minimum expectation for project investment and helps pre-qualify serious clients.
- “Using a starting at price for your projects will again deter the people who thought you could remodel their bathroom for five grand.” (17:55)
3. Value-Based Pricing (19:08)
- Charge based on the perceived worth of your service. Encourages you to confidently communicate your unique value.
- “The price that you put on your paid consultation tells people right away whether or not you value your own knowledge and your own time.” (20:05)
4. Cost-Plus Markup (21:12)
- Common for designers selling products. Do not pass along trade discounts—doing so sabotages your business’s profitability and professionalism.
- “Why are you becoming discount warehouse? That is so foolish, and I say that harshly to make a point… You have to claim that It’s okay to be profitable as a business.” (21:35-22:34)
5. Hourly Pricing (23:05)
- Neutral—appropriate sometimes, but shouldn’t be your default.
- Flat rate is preferred where possible as it rewards efficiency, but always calculate what makes sense project-by-project.
6. Psychological Pricing (24:10)
Kate’s favorite approach. Uses cognitive biases to make certain prices or packages more appealing.
- Example: “$99.99 feels like a better deal than $100.”
- Strategic juxtaposition: Put a high-priced item next to the one you actually want to sell.
- Website tip: Even the font, size, or color of pricing can influence selection.
- “Changing the font, the size, the color of pricing information around your services has proven to boost sales in various instances.” (25:10)
Keys to Confident Pricing (26:00)
Elastic Goods Mindset (27:00)
- Home services are “elastic”—demand fluctuates.
- Don’t let your own money fears dictate your pricing.
Your Confidence Sets the Tone (27:48)
- “If you don’t believe your services are worth it, neither will they. Half of pricing is simply delivering the proposal with confidence.” (27:53)
- Confidence should come from your values and understanding of your service’s real impact.
Don’t Assume Clients Have Your Budget (28:39)
- “Your ideal client’s budget is probably two or three times bigger than your own personal budget. So quit assuming they're going to have sticker shock or think that you are too big for your britches.” (28:40)
Deliver Big Proposals in Person (29:13)
- Deliver and explain high-value proposals in person (or on video) for context and immediate feedback.
- “When you state the price… stop talking. Okay, so when someone asks me how much for a custom website… I tell them, then I just be quiet and I let them say whatever they're going to say.” (30:20)
- Most clients will take the price at face value if you do.
Notable Quotes & Memorable Moments
- “Discounts only attract cheap people.” (05:55)
- “Free and consult should never go together in the same sentence.” (07:26)
- “You teach people how to treat you.” (22:36)
- “Flat rates are great. Hourly is often appropriate, but be careful with it, and always use psychological-based pricing.” (34:41)
- “Half of pricing is simply delivering the proposal with confidence.” (27:53)
- “[After stating your price]… stop talking. Just be quiet and let them say whatever they’re going to say.” (30:20)
Important Timestamps
- 03:30: Definition and importance of pricing strategy
- 05:45: Overview of bad pricing strategies
- 16:13: Transition to good pricing strategies
- 24:10: Psychological pricing explained
- 27:00: Elastic vs. inelastic goods
- 28:39: Pricing confidence and mindset reframes
- 29:13: How to deliver and present your proposals for maximum acceptance
- 30:20: Handling silence and pricing conversations
Takeaways & Action Steps
- Adopt a Clear Pricing Strategy: Don’t just set a number; intentionally select how you present and structure your pricing for clarity and confidence.
- Be Transparent but Firm: Publish flat rates or starting points; avoid discounts and “free” work.
- Limit Choices: Three packages or options maximum for clarity and ease.
- Focus on Value, Not Competitors: Price for your ideal client and your own value, not what others are charging.
- Psychological Tactics Work: Consider layout, contrast, and presentation in your pricing page or proposals.
- Deliver Proposals in Person: Confidently state your price, then pause—clients will follow your lead.
Kate leaves listeners with a reminder: be proud and assertive in your pricing, because it’s a marketing tool as impactful as any ad or website—and sets the tone for profitable, sustainable business.