Do you struggle with determining the price of your service(s)?
Do you feel insecure about the rate you currently charge or about the price increase you want to make for your offer?
Confidently deciding on the price for your services & having a clear understanding of your value sets your business up for sustainable success in the marketplace.
In this blog post, I want to challenge you with several questions that will help you create clarity around your services & pricing.
Question 1: What are my overhead costs?
– What do you have to purchase or keep maintaining in order for your service to function effectively? Let’s say you run a local cleaning business. What cleaning products do you bring to the job? How long does a bottle of that particular spray last? How many rolls of paper towels do you go through in a week? Do you have an office or storage unit that you keep all your supplies at? What is the monthly expensive for that building? Overhead costs need to be calculated so you can make the best profit. When you first start your business, you might not know all your overhead costs until you pick up the pace with clients or customers. That’s alright! As you know more about your required expenses, add them to the list.
Question 2: What is my income goal?
– How much profit do you want to make in a fiscal business year? Profit is what you take home after you have paid your overhead costs or invested a particular amount of the income back into the company’s checking/savings account. Perhaps before you became an entrepreneur and created your services, you worked in the corporate world. If your salary was $80,000 a year, do you want to match that yearly salary or increase the numbers? Do you want to work the same hours as in corporate or do you want to work less hours and yet make more money? Have a definite chief aim for the amount you want to bring home. Also, knowing how much you want to make in a quarter or year will help you determine how many clients you’ll need to work with.
Also, read this blog post: blog.dropmock.com/revenueprofit/
Question 3: What do I believe is my value?
– If you are not confident with who you are & what you do, that energy is going to be felt by potential clients. You have to believe in the value that you bring to the table. You have to believe that the services you offer can benefit your ideal clients & help them create change and get real results. What do you believe you are worth per hour for both the knowledge & experience you have? What would you be willing to pay somebody else for a similar service with similar knowledge & experience as you?
As Jim Rohn said, “Your level of success will rarely exceed your level of personal development because success is something you attract by the person you become.” As you continue to improve as a human being and invest into your growth, education & experience you will find yourself discovering your worth and you’ll see your value increase the more you invest in you.
Question 4: What is the competition charging?
– What are other real estate agents charging for home staging in your state? What are other chiropractors charging for an appointment? What are other social media managers charging for (x) number of posts? I would play detective and visit the websites of your competition to see what the common prices & packaging options are not only for your industry, but what about your particular state or city? Finding these answers will show you what people have been willing to pay for a specific service which will be a helpful frame of reference when you decide what your rate will be.
Question 5: Who am I here to serve?
– Connect with your brand avatar and remind yourself of who they are & what they do. If you are a personal trainer who wants to train men in their 30’s who work in corporate America, they probably have a decent yearly salary where they would be willing to pay an increase for quality training. But if you’re a personal trainer for guys who are busy earning their college degree, their income level is probably related to part-time hourly work. You can find a price where your value isn’t diminished but the people you want to work with are able or willing to invest their hard earned money for your service.
Question 6: What are my service package(s)?
– When it comes to your particular service, do you charge by the hour? Do people work with you on a daily, weekly or monthly basis? Do your programs run for a month, a quarter or half a year? How long do you want to work with a particular client? Would you rather work with a few clients long term or many clients short term? Decide on how many service packages you want to offer & what would be included in each of them (features/benefits).
I hope these questions help you create the clarity to make important decisions for your business.
I would also encourage you by saying: as you grow, your business will grow. As you change, your business will change. What I charged when I first started by personal growth coaching business is not what I charge now. I made incremental price adjustments as my education & experienced improved. What you decide for pricing now will probably change again in the future!
What do you currently charge for your service(s)? How do you feel about your rate? Are you looking to make a price increase? Let’s chat in the comments below!
Producing Proud People,