I think one of the most frustrating things I dealt with when I started my business 14 years ago was trying to figure out what to charge. I got tons of great advice on forums and from our local small business administration, but when the question of how to price my services came up all I heard was crickets. I bet you’ve dealt with the same thing. So how do you figure out how much to charge for your services?
First, a couple of don’ts.
- Don’t charge what others in your field are charging. You don’t know how they came to their pricing. They might be part of a double income family and you’re a single parent. It makes a big difference if your business is bringing in a ‘little extra’ each month or keeping a roof over your head and food in your kids bellies.
- Don’t give drastic discounts because you’re a new business. Just because your business is new, your abilities and services aren’t. Your clients/customers are looking at the end result and how it affects them. If you’re getting the job done, it doesn’t matter how long your business has been around.
The most important ‘do’.
The keyword when pricing your services or products is value. Value has nothing to do with what someone else charges for the same thing, nor does it have anything to do with being affordable. When it comes to charging for your services, value is about what they are worth to someone to solve a problem.
Think about it. You may shop around for the best price for a plumber if there is a normal, non-emergency task you need done. That changes when you’re dealing with a clog or septic issue that keeps you from using your water at all. You want someone who can come quickly and get the job done right the first time. When you can’t flush toilets, wash dishes, or take showers price isn’t nearly as important as a fast, efficient solution to your problem.
You are that fast, efficient solution for your clients and customers.
But how do you determine what that’s worth in order to set rates/prices?
It’s all about doing a bit of research coupled with knowing what your overhead is and what you need to earn. I have a process that I work through with my coaching clients that helps them determine their value and use that information to set their pricing. It’s become such a popular part of the program that I’m now offering it as a stand-alone session that you can find out more about by clicking below. I believe you’ll find it to finally be the answer to how much you should charge for your services.
Setting Your Rates Based on Value
Setting our rates/prices is one of the most difficult things small and home-based businesses face. Sadly, many new entrepreneurs charge too little which can be a stumbling block to success. Take the first step towards getting paid what you are really worth.
A 60 minute one on one coaching session to help you charge what you are worth.
And remember to join the Home Business Jumpstart Facebook Group for more information and discounts on my services and products.