Whether the service you provide is a one-time event with a definitive beginning and end, or it’s an ongoing service, how do you go about setting a price?
Like a great cake, it’s multi-layered:
Layer 1 meets the most obvious items to consider: cost of materials, rental of space, your time, paying your team, cost of delivery, vehicle wear and tear, etc. These are the items for which there’s typically a line in QuickBooks.
Layer 2 hosts the less visible components, which focus on YOU:
- Did you pay for and complete higher level of education that enables you to practice in this field?
- Do you pay for a professional license or certification to allow you to offer this service?
- Have you been offering this for many years and have a mastery level knowledge?
These should all factor into your prices. Think: if you needed a procedure, would you rather go to a medical school student or the chief of surgery?
Layer 3 is often overlooked yet crucial – the client value:
- What challenges will you remove for the customer with your service?
- What goals will your clients be able to reach with your help?
- How will your service change their life physically, spiritually, emotionally?
- What will your clients be able to do now that they couldn’t do before enlisting your services?
One area in which entrepreneurs frequently get hung up is what “the other people” are charging.
“I can’t raise my prices beyond what is the norm in my industry”
Says who?
If you are clear on your unique value and you focus on working with a specific set of people, and you have a special process, then yes you can charge independently of what you believe “the other guys” do.
Listen, this is a huge topic. There are many books and workshops that address pricing.
If you’d like to book a Strategy Session with me to clarify your pricing possibilities, and help you make solid decisions, click here.
This is a 90 minute live session, working side by side with the business owner, devoted to meeting a particular challenge that you’re facing right now. The investment is under $250, payable as you book the session.
And, as an added bonus, when you book and pay for your session, I’ll send you my Pricing 20 Point Checklist to get your brain noodling in the right direction. I look forward to working with you!