The Art and Science of Pricing
The art and science of pricing your services can be a tricky one. I recently did a podcast on productizing them, but what do you do when it comes to the price?
I want you to think of what hourly rate comes to mind when you think about pricing. Then, take that number and double it. Sound scary?
By taking the rate that you immediately think of and double it, that number will cause you to overperform and continue to grow your business. By creating a higher rate, you will be challenging yourself to grow and set up to become the person that can charge that rate. It forces you to grow into that role. Our natural tendency is to stay small and I’ve suffered from not forcing myself to grow in business. When it comes to pricing, we tend to undersell ourselves, undercut the prices, or let the client dictate what they think is fair. It impacts our ability to deliver, and over time you’ll become disgruntled that you are not being paid what you are worth.
Think about how many hours go into each of the packages that you have created because once you have that knowledge it will also assist in helping you to figure out how much is fair to charge. If something takes 8 hours, the rate that you charge should reflect that. One of my favorite examples when talking about pricing services is that something may take you 30-minutes to do. Not a lot of time right? Even though it may have only taken you 30-minutes, it took you 15 years to learn the skills behind that service. This is just another thing to keep in mind when pricing your services. This can be scary for entrepreneurs because you may be worried that someone won’t want to pay such a high price, but the more you challenge yourself the more you will start receiving what you are worth.