Pricing your products and services is a challenging but necessary skill to master. Cause LAWD knows money is how you make your living, right? But it can be difficult to know what price will keep customers coming back while still earning you enough of a profit that you can pay your bills. Lucky for you, I’ve got some tips on pricing services that I think might help:
Know your value
To price your services, you need to know your value.
You need to know what you are worth to your clients, for example.
They will pay for the value of the service that you provide them. So if they feel like they are getting more value from working with you than elsewhere, then they will be willing to pay more for it.
You also need to know what other people in similar roles are charging and how much money they make per hour or project so that you can be sure that what you’re charging is “market tolerant” and reasonable based on industry standards. You can also price whatever the f*ck you want and what will inspire you to show up and show out. More on this in a bit.
If someone else is charging less than what they should be (because maybe their client doesn’t understand how much time goes into each task), then that means there’s room for improvement in terms of pricing – but only if those other people aren’t making as much as they should either!
Do your research
- Research. It will only empower you to have a good handle on what other people creators are doing and how they’re pricing their services so that you can find a good price point for yourself. There are lots of ways to do this: ask around your social circle, talk with other freelancers in your field and ask them what they charge etc.
- Be aware of costs associated with your work. The biggest one will be the cost of your time—how much has it taken up lately? What kind of lifestyle do you want in the long term? Is it possible that some projects could take longer than others without affecting their quality? How long would each project take if everything went smoothly? What about if things don’t go smoothly? Do you need extra materials or labo for each project? Do those materials cost more because they’re specialized for one particular task (like using an airbrush instead of just brushes)? This step is where many people get tripped up because they forget about these costs until after they’ve already invested hours into a project—and then their invoices come back lower than expected due to low hourly rates.
Don’t just look at the competition.
Mic Drop: Don’t just look at the competition, look at the market.
It’s tempting to look at what other people are charging, but this can be misleading. The rates you see might reflect a company’s reputation and brand value, not necessarily their actual worth or value. Plus, if everyone else is charging $100/hour for marketing strategy consulting services, it’s possible that your $250/hour rate might seem like a higher price point than it actually is because of this context effect. Instead of looking at what others are doing and trying to match them (not impossible), take some time to identify why someone would want your product or service in particular—what makes it unique?
Look at what it’s costing you to have a job.
- You might be surprised by how much of your time and energy are spent on work that doesn’t align with your greatest strengths. Just because you’re great at making content, doesn’t mean you should still be doing it years later. Great leadership manages themselves out of a job so they can focus on profitability, lifestyle and culture.
Stay in an industry that is growing.
A good place to start is by staying in an industry that is growing. For example, if you plan on being a Marketing Manager, you should look at marketing as an industry. Is it growing? If so, what types of businesses need marketers? Are there more opportunities for those who are skilled in marketing than those who are not?
Offer something extra.
The proverbial “VALUE” conversation. Bleh but truth is, people love extra shit. So depending on your niche and positioning, you could make your services more attractive and offer something extra. These extras could include:
- Access to your other programs
- Lifestyle Shit like Human Design Readings or Sales Templates
- Money-back guarantee
- Discount for first time clients (e.g., 10%)
- Free consultation/consultation by phone or Skype instead of in person if scheduling is difficult
- Free trial if you don’t have much experience with this type of work, but are willing to try it out on one or two projects before committing.
Work on payment terms and make them clear up front.
I don’t personally do payment terms but others really love them.
Here’s what you need to know. There are several things you need to consider when deciding how much to charge for your services. The first, and most important, is whether or not the client has enough money for what you’re offering. If they don’t have it, then there’s no point in trying to convince them otherwise.
Second, an abundance mindset comes with those who have no problem investing in themselves.
It’s also important that whatever price tag comes up when we do our math matches what we think will be fair compensation for our services; otherwise we risk feeling resentful and/or getting into bed with shitty clients that can’t really afford you and end up dragging you down in the process.
Create a customer service program that keeps clients returning.
When you offer a free consultation, trial, or sample, your clients will be more likely to buy from you because they’ll know exactly what they’re getting.
Know your value, do your research, and don’t look at the competition but the market when you are determining how much to charge for your service.
Here’s the recap:
- Know Your Value: You must be able to articulate what you bring to the table that makes you an expert in your field. If there is a particular area of expertise that separates you from other professionals in the industry, make sure that it is clear in everything from writing blog posts or articles about it, speaking on panels about it and even just writing about it in general.
- Do Your Research: Have some idea of what others are charging for similar services within your industry so that you have an idea of where people are falling within their pricing structure (i.e., cheap vs expensive). This will allow you more flexibility when setting yours because then it isn’t based on what one competitor does but rather what everyone else does as well which may vary depending upon factors such as location etc…
- Don’t Look At The Competition When Determining Pricing Structure: Doing this will only lead one down a path toward charging less than they should or worse yet; not charging enough! It is important instead of only knowing how much others charge but also understanding why they charge those amounts based upon their own unique situation/circumstances (i.,e., overhead costs). Look more at the market and the industry as a whole.
There are a lot of ways to price your service and I know it can seem like a daunting task. Just remember that if you do the research, know your value, and don’t look at the competition, you’ll be able to set a winning price every time.
“The Future of Branding is Personal”