Easy Pricing Strategies to Determine Your Rates
Pricing strategies are something you need to learn in your business. This might just be the most stressful decision(s) you ever have to make: what to charge?
- You’ve got the competition to consider…yikes!
- Your own skill set, and what you perceive to be your skills (yes, this is different from the former for most of us)
- What your market will pay, your location, and a host of other variables.
Working it out can feel like a hurdle you can’t quite get past.
Of course, there are some strategies you can employ. One popular method is to use a plain ol’ calculator (if you still use one of those). Here’s an interesting article on rates used in 2017. Please understand…this is only a guide, so don’t think you need to use this information explicitly or your business will go down the tubes!
Having a general guideline will quickly tell you what you need to be charging to reach your income goals, and it’s a great place to start.
But what about all those other questions? Creating a solid pricing structure requires you to do a little more digging. Clams anyone? Yeah, in all seriousness with your starting number in line, take a look at the following:
This might take a little detective work since a lot of coaches and service providers don’t publish rates. But if you pay attention to their websites and social media, ask a few discreet questions, and get on their mailing list, you can figure it out. I show my rates as “Starting At” prices because every job is usually different.
Be realistic about who exactly your competition is though. Don’t undervalue or over-sell yourself. In other words, make sure you’re comparing yourself to another provider who shares the same skills, market, and tracking record, rather than simply looking at who you strive to become. Kinda important…you can’t charge say $100.00 an hour if you’re just starting out…duh!!
In some fields, this is easy. There are certifications and educational programs that allow you—by virtue of having achieved them—to charge a certain rate. If you’ve followed this path, then pricing will be easy for you. If not, take a solid look at what you can legitimately claim as a skill. Just remember, this is your business so don’t think that you have to settle for charging less than your worth.
Look, too, at your track record. Have you proven yourself by helping former clients (and do you have the testimonials and case studies to show for it)? Have your former clients moved on to bigger and better Service Providers after working with you? These are all reasons to consider a higher price range than you might have first thought about.
In the game of setting rates, it’s your market that has the final say. As any first-year economy student can tell you, the price of anything lies where what the buyer is willing to pay meets what the seller is willing to accept. This is an interesting fact, just ask any other Service Provider on the market today.
If your goal is to give newbies a helping hand and lead them down the path to success, that unfortunately means you can look forward to low paying gigs. That’s not a bad thing—everyone has to begin somewhere—but it does need to be acknowledged.
If, on the other hand, you’re target market is more established and economically stable, then a higher fee isn’t just warranted—it’s a must. They will expect a higher price, and will not find value in the lowest-cost provider of anything, whether it’s coffee beans or business coaching. LOL!
Finally, don’t forget that pricing is never set in stone. It’s flexible. If you find you’re attracting the wrong market (or no market at all) you can always change your rates. Working too hard for not enough return? Raise your rates.
It’s your business. You get to call the shots. If you are allowing your clients or other Service Providers to decide what your rates are going to be, you are only doing yourself a disservice. This is such a HOT TOPIC right now. Do your research, but DO charge what you’re worth!
If you ARE looking for a Service Provider please contact me HERE. I would love to help you with your business.
Please comment your thought below. I would love to hear what you think!