Unapologetic Pricing: Building Black Wealth by Recognizing Our Value

Guess how many Black-Owned businesses reach the million-dollar mark? The answer is, less than 2% of Black-owned businesses generate over a million dollars in annual revenue? Even more startling is the fact that many of these businesses struggle to stay in operation beyond five years. One contributing factor to this disparity is pricing—specifically, the reluctance to set prices that reflect the true value of their products and services. This challenge is compounded by a consumer base that may hesitate to pay these prices, despite readily accepting higher costs from other mainstream businesses.

To foster a thriving Black economy, it's essential for business owners to establish unapologetic, data-driven pricing strategies and for consumers to appreciate and support these valuations. This requires a collective effort to shift cultural perceptions about value and worth within the community.

The Psychology of Pricing and the Visibility Problem

Pricing is not merely a financial decision; it is deeply intertwined with psychology and perceived value. Consumers often associate higher prices with superior quality and lower prices with inferiority. This perception can lead to a devaluation of Black-owned businesses when they underprice their offerings in an attempt to attract customers.

Moreover, societal conditioning has led some consumers to expect lower prices from Black businesses, viewing them as less deserving of standard market rates. This mindset undermines the financial viability of these enterprises and perpetuates economic disparities. Additionally, a visibility problem arises when businesses price themselves in the middle range. Studies show that if customers are buying based on price, they usually go for the lowest option. Conversely, if they are buying based on perceived quality, they gravitate toward the highest-priced option. As a result, middle-priced products often get overlooked, remaining invisible to potential customers.

Actionable Tip: To break free from the cycle of price-based invisibility, avoid the pitfall of middle pricing, which often leaves products overlooked. If you do happen to be the middle priced product, then you want to focus on building relationships before presenting pricing. 

The key is to strategically position your offering as either the premium choice in its category—emphasizing superior value and pricing accordingly—or as the most accessible option, appealing to cost-conscious buyers. The key is to make pricing decisions grounded in data rather than emotions or assumptions, ensuring that each price point reflects the true value delivered. For more insights on overcoming visibility challenges, explore our previous blog on Increasing Visibility for Black-Owned Businesses.

Pricing with Confidence and Data

To overcome the challenge of being ignored or undervalued, it's crucial to have both confidence and data to set unapologetic prices. Collecting data from customers can help you understand what they want from you, how often they buy, how long it takes them to make a purchase, and other factors that can impact your business. By understanding these dynamics, you can better tailor your pricing strategy to meet customer expectations while ensuring profitability.

However, for small businesses with limited resources, gathering this information may seem daunting. Here are some practical steps to simplify the process:

1. Ask for Feedback Directly: Don’t complicate the process with expensive surveys or focus groups. Instead, engage customers through social media polls, follow-up emails, or even casual conversations. Questions like “What made you decide to buy?” or “What would make this product more valuable to you?” can provide valuable insights.
2. Analyze Purchase Patterns: Look at your sales data to identify trends such as peak purchasing times, frequently bought items, or abandoned carts. If you’re using platforms like Shopify, Square, or even PayPal, these analytics are often built-in. This data can help you adjust pricing, promotions, or even product bundling strategies.
3. Compare but Don't Copy Competitors: Research your competitors to understand market rates, but don’t simply mimic their prices. Your value proposition is unique, reflect that in your pricing. Use competitor pricing as a benchmark, but consider what makes your offering stand out.
4. Test and Adapt: Don’t be afraid to experiment with different price points. However, it’s easier to start low and go up than it is to start high and go done. You’ll have to price it as if it is a sale and if you get your customers spoiled by sales, they will only buy from you when you are having a sale. This doesn’t work in retail as much, but can be especially effective to raise pricing when you have a service-based business. 

Offer limited-time promotions or A/B test two different prices to see which performs better. The key is to make adjustments based on real customer behavior rather than assumptions.

By implementing these steps, you can confidently set prices that reflect the value of your offerings. Remember, the goal is not just to make a sale but to build a sustainable business model.

Consumer Responsibility and Mindset

Every business owner is also a consumer. Whether purchasing supplies for your business or shopping for personal needs, it's crucial to be mindful of how your buying habits impact the economic ecosystem. This is particularly true when supporting Black-owned businesses.

To foster a thriving Black economy, a shift in consumer mindset is necessary:

1. Value Recognition: Recognize that products and services from Black-owned businesses are worth their asking prices. Avoid expecting discounts or free services that wouldn’t be requested from other businesses.
2. Prioritize Support: Make a conscious effort to patronize Black-owned businesses consistently. This isn’t just about a one-time purchase but about making it a habit to support the community.
3. Advocate for Fairness: Speak up when you notice others undervaluing Black-owned businesses. Encourage a narrative of respect and recognition for the quality and value they provide.
4. Pay It Forward: Recommend Black-owned businesses to others. Positive word-of-mouth can significantly impact visibility and perceived value. We can’t sit back and wait for a food blogger to come talk about our favorite restaurant. We have to brag about them too.

Changing consumer behavior begins with awareness and intention. By acknowledging and addressing unconscious biases, consumers can contribute to the financial viability of Black-owned businesses.

Personal Experiences: Breaking the Narrative

Growing up with entrepreneurial parents and throughout my journey as a business owner, I have encountered numerous instances where individuals requested free services or discounted rates that they wouldn’t dare ask of other companies. This disparity stems from a perception that certain platforms inherently deserve compensation, while Black-owned businesses are expected to offer concessions.

It is time to reverse this narrative: Black businesses provide value, and that value deserves fair compensation. The more fairly we are compensated the better service we can provide. By adopting unapologetic pricing and maintaining consistency in communicating the value, we can change perceptions and increase profitability. By keeping your price higher, you are doing your customers a favor. You are putting yourself in a position to better serve them. It’s not greed, it’s a need. 

Running a business can be complex; it takes a toll physically, mentally, and also emotionally. I’ve run a business since I was 19 years old and have had varying experiences. Since my mother and I decided to continue my father’s legacy and take over Bronzecomm Communications we have been running off of passion and purpose rather than financial gain. This isn’t sustainable and that’s part of why we started the ThriveWell Collective alongside Bronzecomm to create a place for us to get support while giving support to other Black-Owned Businesses. 

Running a small business like Bronzecomm comes with its fair share of challenges. From balancing growth with limited resources to managing advertising partnerships, meeting tight deadlines, and ensuring fair pricing, we navigate it all while keeping our community engaged and our content valuable. Juggling multiple roles, nurturing relationships, and maintaining a high standard of professionalism—while staying true to our mission—requires strategic planning and adaptability. As we continue to grow, we’re focused on finding the right balance between serving our audience, expanding our reach, and creating sustainable revenue streams that support our work. 

That’s why we must be unapologetic about our pricing. We encourage you to find your why. Use your data to understand why your price is set where it is, but also anchor yourself in a strong emotional reason. This will remind you why you must stand firm when tempted to lower your prices. If we are to continue my father’s legacy, if we are to witness Black-owned businesses increasing their wealth, and if we are to grow and set an example for future Black entrepreneurs, we must be unapologetic about our pricing. What’s your why? 

Actionable Tips for Business Owners and Consumers

For Business Owners:

• Be Transparent: Clearly communicate the value and benefits of your offerings. Don’t just state the price, stand on it. Your price is justified by real-world outcomes, data, and experience.
• Educate Your Customers: Share the story behind your brand and the craftsmanship or expertise involved in your products or services. This helps build emotional connections that justify higher prices.
• Regular Reviews: Periodically reassess your pricing strategy to ensure it aligns with market trends and your business growth goals.

For Consumers:

• Business-to-Business: Run your business using Black venders, suppliers, and contractors where you can. It won’t always be possible, but do your best.
• Support Consistently: Regularly purchase from Black-owned businesses without seeking discounts. Consistent support is more impactful than one-time purchases.
• Spread the Word: Advocate for Black-owned businesses by recommending them to others. Social proof can significantly influence perceived value.
• Constructive Feedback: Offer insights to business owners that can help them improve their offerings or justify their pricing, contributing to their growth and success.

Building Wealth Together

Navigating the journey of unapologetic pricing and fostering community support isn’t easy—but you don’t have to do it alone. The ThriveWell Collective brings together small Black-owned business owners who are committed to enhancing their health, increasing their wealth, and thriving in their entrepreneurial pursuits. Within this community, you’ll find guidance on confidently setting data-driven prices that reflect the true value of your products and services. More importantly, you’ll gain the emotional support needed to stay firm in your pricing decisions by connecting with others who share your vision. Let’s grow financially and mentally, supporting each other every step of the way.

Building Black wealth requires a collective effort where business owners confidently set prices that reflect their value, and consumers wholeheartedly support these decisions. By embracing unapologetic pricing and fostering a community of mutual respect and support, we can pave the way for a prosperous future.

Note: This blog is part of an ongoing series dedicated to supporting Black entrepreneurs and consumers. Stay tuned for more discussions and actionable advice. For more insights, feel free to revisit our previous blogs, click here for more.