Do you struggle with determining the price of your service(s)?
Do you feel insecure about the rate you currently charge or 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? Letʼs 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 are the monthly
expenses 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. Thatʼs
alright! As you learn 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 companyʼs 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 you did in
corporate or do you want to work fewer 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
youʼll need to work with.
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
in your growth, education & experience you will find yourself discovering your
worth and youʼll 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?
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 30ʼs 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 youʼre 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 isnʼt
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.
I would encourage you to practically answer these questions with traditional pen &
We want to visually brainstorm our next best steps for deciding our service(s)
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 me know in the comments below and if you would like to discuss this topic
farther you can contact me at firstname.lastname@example.org
- Timothy L. Cole