When it comes to pricing your services, online gurus will tell you to “charge what you’re worth.”
Now, I understand that the intentions behind this phrase is to keep you from undercharging. But sometimes the idea that your worth = your pricing can really mess with your mindset, especially if you’re just starting out or launching a new service.
The thing is, your worth has nothing to do with what you charge. Your worth is inherently given to you as a human with specific and precious gifts, talents, and resources.
But PRICING your services can be more about placing a value on what you provide to your clients. There’s a few different factors that can help you determine this. If you price your services too high, you may not book clients. If you price too low, you could not be taken seriously or run the risk of burning out.
So this week, we’ll dive into “Finding Your Pricing Sweet Spot” and learn more about the art and science of pricing your services so they’re compassionate for your clients AND profitable for your bank account.
Get clear on your offer.
Not all services are created equal. Depending of the service you’re providing as it relate to your client’s journey, you could be offering an affordable and accessible service that solves one problem, or a premium and all-inclusive service that takes care of a lot of problems.
So, naturally, your pricing can reflect the type of service you’re providing.
Getting clear on your offer could mean brainstorming:
From start to finish, what does the process look like?
How long will it take?
What will the format be? Product? Workshop? Small Group Setting? 1:1 service?
What kind of communication will be have?
What features would be helpful?
2. Consider your confidence and competence level.
When we talk about finding YOUR pricing sweet spot, this comes down to your CONFIDENCE and your COMPETENCE in delivering the service or sharing your expertise. Because if you don’t feel confident in stating your price or in your ability to provide results, it will be much harder to sell your services.
So, I think it’s okay to start at a lower price point (but still profitable) as you build up your portfolio, gain experience, and gather testimonials and social proof. You can even communicate this to your clients as an “introductory rate” so everyone knows it’s for a limited time and for the purpose of growing your experience.
The “science” or psychology behind this is to allow you to WIN by working with real clients and getting real feedback. If you’re curious about what clients are willing to pay for your services, you can just ask during market research calls or polls! Of course, this is just to give you an idea of a ballpark range or confirmation of if your services will be well received.
3. Count your costs.
In order to create profitable packages and services, let’s get real about your numbers and take a look at your costs! Here’s where you can take a look at your expenses. Write down everything you pay for when it comes to running your business.
• Remember: fixed costs are expenses that are the same every time you book a client. For example, if you’re an executive coach, a fixed cost may be the cost of a DISC assessment that you give to your client at the beginning of your work together.
• Variable costs are expenses that may be a one time expense, like office supplies, or the amount of gas you need to drive to events.
Getting a sense of your expenses gives you a better idea of how much profit you’ll make, because at the end of the day, it’s not about how much money your business brings in, but how much money you can take home. Don’t forget to include taxes!
4. Price yourself for growth.
So, when can you reasonably raise your rates? When there’s a demand for them.
Since you’re selling a service that’s dependent on your limited time, as you get better at your craft, grow an engaged audience, refine your brand, and streamline your process, you’ll be able to increase your rates accordingly.
One way to do this is to decide ahead of time when you’ll give yourself a raise. For example, you could challenge yourself to raise your rates by $300 every time you book 3 clients until you reach your sweet spot pricing. This will keep you engaged and allow you to price yourself for growth.
Ultimately, pricing your services is striking a happy medium between you and your clients. Once you know the specifics like the features of your offer, your costs, and even a hourly rate, you can play around with what feels aligned to you. Your services require your time, your energy, and your expertise so take care of yourself (and your bottom line) to set your rates at a price that gets you excited to do your BEST work and create life-changing results for your clients.
If you’d like help to help you dream big, plan accordingly, and execute on your personalized strategy, then check out my 1:1 coaching programs and book a discovery call to talk about working together.