How much should I charge?! It’s the the question that can have you going around in circles for too long!
Exchanging your time for money will only get you so far.
Before long you’ll begin to feel burnt out with your business and realise that you’re getting little reward.
Entrepreneurs want that freedom from corporate, only to discover that they work more hours for less money, and there’s no freedom whatsoever!
But you can have freedom and flexibility with your business. A business that provides you with the ‘choice’ of when to work.
By building, scaling and growing a business online.
There is no magic pill for that to happen in a short amount of time. It takes hard work, determination and grit. You need a strategy and you need to tap into your logical brain often. And for creative entrepreneurs, utilising that side of your brain can be tricky at times.
How much should I charge for my services?
Here’s some tips to help you figure it out…
1. Clarity on how you’re working
Are you offering a DFY (done for you) service? Or are you offering DIY (do it yourself) and teaching your clients how to do what you’re offering with your expertise? Are you working 1-1 or offering a group programme and starting to scale? Is your business model correct for the type of life you want to create?
2. What is the transformation for your client?
What benefits is your dreamie client getting from working with you? What transformation are they getting? What’s the before and after?
i.e. Are you providing them with a website that will look amazing and be stress free for them to work with?
Or are you providing them with a website so they can attract clients?
The end result is different. What is the end result for your client?
The more specific you can get the better ,so you can incorporate it into your copy. Make it succinct and understandable, and use their language.
3. Create your packages
Having three packages on offer gives your clients the choice of how to work with you. Ideally you would set them all at different price points; low, medium and high.
i.e your lower priced package wouldn’t provide as much access to you. The least amount of your time is spent on this package.
Your medium priced package would be a little more access to you than the lower price but shared time. i.e. a group programme. Your attention is on the group and not just the one client.
Your higher priced package would be dedicated time with your client. i.e. weekly 1-1 sessions. Usually because the client wants to have the transformation sooner rather than later and wants results. This is more time intensive for you and therefore priced the highest.
With your packages, think about the frequency of sessions, your time and energy, and the amount of access to you when it comes to the next point of pricing them.
*Action to start creating your packages
- Grab a piece of paper and start by making a list of the tasks you love to do and those you would rather let go of or outsource.
- Then start looking at how you can mix and match those various elements into different packages. If you’ve already got clients, look at what your clients are requesting and the services they’re aren’t.
- Create one package at a time for pricing and follow the steps in the rest of the blog
If you want to talk about pricing your services, book a call
4. Pricing – how much should I charge?
The pricing quandary of how much should I charge for my services is difficult for everyone in business at some point. I think most creative women are driven by feelings and emotions so I want you to close your eyes and check in with yourself on these two statements:
*Action to start adjusting your pricing
- How do you feel when you add a 0 on to the end of your current price?
- How do you feel if you doubled or tripled your pricing?
If either scares you, it may just be a little out of reach and that’s ok for where you are.
- Staying with adding a 0 on the end, now say a number above your current price and down from adding the 0 on the end price.
- Think of it as a scale on a seesaw. You’re trying to find the place where it feels good. Slowly start nudging both numbers towards each other. You will instinctively know whether it’s too high or low. Trust your instincts.
Start playing around with your new pricing numbers on the scale, write them down if you need to. You need to find the place that feels good and perhaps a little stretch. move the scale up and down from there until you start to feel you’re in the right area
Sit with it there for a couple of days, revisit it and see how that feels. If it feels good, could this be your new pricing?
Focus on your usp and brilliance. Add your flair and sparkle and that sprinkling of fairy dust to your premium pricing.
Role play with a business buddy where you can say your price and the numbers out loud or practice a discovery call. Your clients are paying for your skills, talent and zone of genius.
I regularly role play with my clients. Book a call and let’s role play you saying your new prices out loud!
5. Profit First
If you haven’t read this book Profit first, I highly recommend it. Focus your attention on profit first and allocate certain %’s of your revenue. If your annual revenue is under $250k, this is what Mike recommends allocating:
50% Owners pay
30% Operating expenses
I highly recommend reading the book for a full explanation of how the system works.
How much should I charge then will become easier as you’re focused on your profit and running your business like a CEO.
From a very pragmatic point of view, if you’re just starting out or uplevelling, it’s so important to do some research on what your competitors are charging. Even if you’re revisiting your pricing after a few years and wondering how much should I charge, this is a great place to start.
I recommend researching around 3 – 5 businesses that are offering the same or a similar service. Take an average and see where your prices are sitting in line with them. If you’re the lowest, you’re not charging enough and need to increase your prices!
7. Self worth
Are you leaving yourself wide open for clients to drain your energy and absorb all your time? Some clients will take advantage of this so be warned! If you are, then it’s likely that you need to install some boundaries!
Self worth comes from VALUING WHAT YOU DO in and outside of business. Think of the fun, friendship and joy you bring to your friends, family and acquaintances.
Think of how you were valued in your previous roles, I bet in some roles they couldn’t have done without you and you were indispensable.
Love yourself. Treat yourself with loving kindness, (and the odd gift too!), do what lights you up, raise your energy, thank your brain for its intelligence, your body for being strong, your personality for being a perfect match, thank your soul for being a decent human.
How can you bring more love into your life as a person? Forget everyone else, I’m talking about YOU first and foremost. Without you, you won’t have a life or business so this has to be a foundational first step.
How much should I charge as a statement will then shift and won’t be so emotionally charged.
Journal around your money mindset monkeys and look for evidence to have the opposite belief.
You are good enough and you can do it. Convince your brain of that every single day.
Work with the end in mind and stay focused on this as your vision. Remember it every day. Feel it. Get excited about it. Know that it is coming your way, but you do need patience!
What do you want to earn by this time next year?
How much do you want to earn in a year, quarter, month etc. You need to get specific about the amount of money you want to earn.
Not motivated by money? That’s ok, neither am I. So what are you motivated by?
I’m motivated by the difference I can make to someone’s business and the reward I get for that; it’s hugely satisfying. It enables me to fund my life which allows me to travel, be able to work from anywhere and be financially independent, without leaning on anyone for financial support.
You can read the blog here on the books I read to uplevel my business this year and the difference they made. They led me to figure out how to charge for my services, even though none of them were about mindset.
9. Reverse Engineering
As a business coach I work with the end in mind. You need to reverse engineer the amount you want to earn.
For example, if you want to earn $100,000 in the next 12 months and your premium service is priced 5k, you will need to sell 20 high end packages to meet your 100k target.
Now you need to break that down into quarters and months and how much revenue you want to earn in that period.
To keep it simple, let’s say you want to earn $25k per quarter, you know you need to get 5 clients per quarter.
That indicates 1.6 clients per month to earn $8,333 per month.
How much should I charge then becomes a practical exercise that you need to figure out in order for you to have a profitable business.
10. Paying someone else
How much would you pay someone else to do what you do? How much would they charge you?! Imagine your business got so big that you had to outsource your role and you became the business owner and stepped fully into your CEO role? Think about how much you would have to pay them, plus taxes, pension, sick pay etc, PLUS your mark up!
Try and step out of yourself and look at what you’re charging from an outsider’s perspective. How much would you tell your friend to be charging in your position?
11. Day rate
Look back and see how much you used to get paid, how much your freelance rate was/would be and use this as a starting point too. There are freelance calculators here and here and here that can help you with that too.
Remember what you set your prices at now is only for now. Your pricing is something you review annually or every time you uplevel or add a service/package.
If you know you’re charging too little, then move the needle up the scale until it feels right.
Breath a big sigh of relief and get to it in finding those new clients!
You are running a business, not a hobby and you need to be paid for your skills, talent and all round amazingness!
Need help figuring out how much you should charge?
Book a call with me today.