How To Become a Pro at Pricing
You can definitely become a pro at pricing.
Ahh… the prices and payment topic! As you probably know, pricing your product or services is not one-size-fits-all, it requires a thoughtful approach.
There is good news! You can become a pro at deciding what to charge AND get comfortable talking prices and payment with clients all with a little practice and by doing your homework.
Here are my top 3 tips when it comes to pricing:
Assess the industry “going rate” for your level of experience. What are people with similar businesses and experience charging? Be ready, your clients will do their research and some clients may attempt to negotiate (negotiation is another post!). If you are well versed in the approximate going rate you can confidently assert yourself with your clients in this situation.
Negotiating fine print: If you do decide to negotiate, decide ahead of time what elements you are willing to negotiate on and by how much - avoid buckling and underselling yourself at the last minute just to secure a client.
Consider your cost of living. Do your prices align with the cost of living where you live? Depending on where you live, prices may vary. For example, if you live in San Francisco or New York your prices may be very different from someone with a similar business who lives in a city with a lower cost of living. Ensure your prices cover you financially given the location in which you live.
Give yourself a raise! Inflation and cost of living increase yearly, evaluate and adjust your prices accordingly. Plus, as each year passes you are gaining more experience, another reason to raise your prices (back to point #1). So don’t overlook giving yourself a raise. You wouldn’t tolerate not having a raise working for someone else. The same goes when working for yourself!
Finally, KNOW YOUR WORTH. While you may be excited to secure a client avoid underselling to give your clients a discount when it doesn't work with your financial goals. Your clients may not value or respect your services as much as if you charged them what you’re really worth.
Chances are you've put everything you've got into yourself and your business. So remember, you're SO worth every single penny your clients pay you. Remember that, always.
Holly works with professionals to create services-based businesses using expertise and strengths they already have. Holly is the creator of The Consultant Code, a program will have you up, running, and profitable with your services-based business in 60 days or less! Want to learn more? Drop her a note at: holly@hollyknoll.com