3 things to think about when pricing yourself
Ahhhh, that age-old challenge for new entrepreneurs and business owners.
Too many of you start your business journey not knowing your worth which starts you off on rocky stead with your relationship with money.
Questions arise like, should I be charging for my time? Am I experienced enough to charge this amount of money? Will she take me seriously for sending this quote? Have a read through these 3 top tips to make sure you’re on the right path to profit.
1. Alignment
When I was looking into launching coaching packages as opposed to a one-off power hour, I remember my coach telling me that I should be charging £10,000. Up until this particular point, I had only been charging £150 max for a power hour so the thought of charging £10k filled me with fear and dread. There was no way I could possibly charge that.
Because I was not behind that pricing strategy the package would never have sold, because I did not believe it in myself and my prospective clients would’ve smelt it a mile off.
And that is the key. You have to be fully aligned whatever you charge for whatever service because if you’re not and it just won’t sell.
2. Benchmarking
Have you seen what your competitors are charging? It’s all very well calculating an hourly rate based on a guesstimate but you could be really undercharging yourself if you haven’t factored in all the work you do outside of those hours. I learnt this lesson the hard way.
For example, if you want to earn £50 an hour and you charge a power hour call for that amount you haven’t taken into account any of the prep work or the post-sale support that you will be doing. You’ll actually be losing money at this point.
Which brings me onto my next point perfectly…
3. Ditch hourly charging
Where’s the money for the hours of preparation? The training, qualification and experience that you’ve incorporated into this price? Focus on value and packages. What is the desired outcome for somebody working with you? How will that boost their sales and ROI? What do you want to help them achieve? Think about those things and create a package around that.
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