Talking With The Experts - Rose Davidson

In a recent episode of the "Talking with the Experts" podcast, host Rose Davidson sat down with Robin Waite—founder of Fearless Business—to explore the crucial topics of pricing strategy, productising services, and cultivating a healthy money mindset. Drawing on over 20 years of experience, Robin shared insightful stories from his entrepreneurial journey, offering practical tips and mindset shifts that can help any business owner confidently charge what they’re worth.

Rose Davidson is a distinguished podcast host, producer, and entrepreneur, best known for her acclaimed podcast, Talking with the Experts. With a career spanning over four years and more than 500 episodes, she has built a platform that ranks among the top 5% globally, earning recognition in the top 100 podcasts in Australia and the top 20 in New Zealand. Through her insightful interviews with industry leaders and innovators, Rose provides valuable knowledge and practical advice to professionals across various fields. Her ability to foster engaging, thought-provoking discussions has cemented her reputation as a trusted voice in the podcasting industry, making Talking with the Experts an essential resource for business owners and professionals alike.

Below, we unpack the key takeaways from the conversation, from real-life pricing experiments to breaking free of limiting beliefs about money.

What We Discussed on the Talking with The Experts Podcast

1. Productising Services Increases Efficiency: Breaking down services into structured, fixed-duration offerings allows for predictable revenue and premium pricing.
2. Mindset Shapes Pricing Success: Personal money beliefs can impact pricing decisions. Shifting to a value-based mindset helps entrepreneurs charge appropriately.
3. Competitor Pricing Isn’t Always Reliable: Copying others’ pricing models can lead to undercharging. Instead, focus on the unique value you provide.
4. Discounting Can Harm Profitability: Reducing prices too often erodes perceived value and requires significantly higher sales to maintain the same revenue.
5. Financial Literacy is Crucial: Regular cash flow reviews, proper financial planning, and consulting experts ensure long-term business sustainability.
6. Emotions Play a Role in Pricing: Confidence in pricing directly affects how clients perceive value. Testing higher rates and refining messaging can help reinforce worth.
7. A Proactive Pricing Strategy Pays Off: Incremental price increases, structured offerings, and consistent value communication boost revenue and industry credibility.

The Journey: From Traditional Pricing to Productisation

A Personal Story of Transformation

Robin Waite opened up about his early days in business, when he ran a traditional agency that charged by the hour. Despite initial success, he encountered many challenges:

• Struggles with pricing: Charging an hourly rate meant that every project could vary greatly, often leading to frustration and financial unpredictability.
• Personal breakdown: After years of internal struggle and feeling unfulfilled, Robin experienced a breakdown that ultimately forced him to reassess his business model.
• The turning point: Selling the agency’s intellectual property enabled him to pivot into mentoring and coaching, eventually focusing on productising services.

This personal journey underscores that sometimes a painful wake-up call is necessary to break free from an unsustainable pricing model and embrace a more efficient, outcome-focused strategy.

The Concept of Productising a Service

One of the core ideas discussed was how to productise a service—a process that involves:

• Identifying core steps: Breaking down the service delivery process into a set of clear, repeatable steps.
• Fixed time frames: Transforming lengthy projects (e.g. three months) into more efficient, fixed-duration experiences (e.g. one-day workshops).
• Outcome focus: Shifting the focus from time spent to the tangible, valuable outcome delivered to the client.

Robin shared a compelling example of how he transitioned from hourly rates (£50 per hour) to offering a one-day logo design workshop for a fixed fee of £1,500. This approach not only expedited cash flow cycles but also allowed him to command premium pricing as his clients recognised the significant value of a swift and efficient service.

Common Pricing Pitfalls and How to Avoid Them

Mistake 1: Pricing Based on Internal Value Systems

Many business owners fall into the trap of setting prices based on personal financial beliefs or upbringing, often influenced by notions such as “money doesn’t grow on trees.” Robin explained that:

• Mindset matters: If you don’t value your service, it’s difficult to articulate that value to your clients.
• Internal narratives: Negative money beliefs from childhood can hinder the ability to charge appropriately.

Mistake 2: Over-Relying on Competitor Pricing

While it’s useful to research competitors, Robin warned against blindly copying their pricing strategies. Consider these points:

• Flawed benchmarks: Competitors might be underpricing or operating on unsustainable models.
• Lack of differentiation: Simply matching competitor rates can lead to a race to the bottom, where few truly stand out as experts.

Mistake 3: The Discounting Dilemma

Discounting, though sometimes tempting, can be detrimental if not executed carefully. Key insights include:

• Profit erosion: A small discount (e.g. 5%) might require significantly higher sales volume (up to 14% more) just to maintain net profit.
• Perceived value: Consistent discounting can dilute the perceived quality of your service, making it harder to justify higher prices in the future.

Developing a Robust Money Mindset

Separating Personal and Business Finances

Robin emphasised the importance of recognising that your personal money mindset and your business’s financial health are two distinct entities. Some practical tips include:

• Keep emotions in check: Ensure that personal financial worries do not colour business decisions.
• Build solid foundations: Treat your business’s cash flow as the lifeblood of operations—akin to oxygen for a growing child.

Embracing a Data-Driven Approach

Understanding and managing numbers is critical for any business owner. Robin highlighted the need for:

• Basic financial literacy: Even if you’re not a numbers person, seek guidance from an accountant or financial expert.
• Regular cash flow reviews: Monitor your profit and loss statements, forecast cash flow, and establish a “rainy day” fund (e.g. aiming for £50,000 for six months’ security).

The Role of Emotional Intelligence in Pricing

Pricing isn’t solely a numbers game—it’s deeply influenced by emotions and personal beliefs. Robin led a live pricing exercise with Rose Davidson, illustrating how:

• Body language and gut reactions: These can provide real-time feedback on pricing comfort zones.
• Confidence boosts: Successfully increasing prices can enhance both your self-esteem and your client’s perception of value.

Practical Steps for Charging What You’re Worth

Experiment and Adjust

Robin encouraged business owners to test higher price points with their next few pitches. His practical approach involves:

• Incremental increases: Start with small adjustments (e.g. raising a DIY course price from £149 to £297) and gauge client reactions.
• Learning from feedback: Use client responses and personal feelings (like a “butterfly effect” in the stomach) as indicators of whether the new pricing is in line with your perceived value.
• Commitment: If a new price is met with hesitation, seek additional sales training or coaching to better articulate the value proposition.

Benefits of a Proactive Pricing Strategy

By adopting a proactive approach to pricing, business owners can enjoy several benefits:

• Increased revenue: Higher prices mean you can extract more value from each sale.
• Enhanced credibility: Positioning yourself in the top percentile reinforces your status as an expert.
• Streamlined processes: Productised services create predictable and efficient business models.

Conclusion

The discussion between Rose Davidson and Robin Waite offers a wealth of actionable insights for any entrepreneur looking to elevate their pricing strategy and overcome limiting money mindsets. From real-life examples of transforming traditional pricing models to emphasising the importance of a robust cash flow and clear financial boundaries, the podcast underscores that pricing is both an art and a science. By adopting a data-driven yet emotionally aware approach, you too can confidently charge what you’re worth and create a thriving, sustainable business.

Embrace the journey, experiment with your pricing, and remember: your business deserves to be as valuable as the outcomes it delivers.