Welcome to the second installment of my “Can’t-Mess-It-Up Guide” series! This time, I’m here to help you price your offers. Dun Dun Dun! (Just kidding. Don’t freak out.)
There’s no doubt about it, talking about money can be weird. The great news is it so doesn’t have to be. The sooner you get comfortable discussing your rates the better for everyone involved in your sale. Having confidence when discussing your prices will help you gain control over your offers and instill trust in your client.
In my own personal experience, I’ve worked and reworked my rates as my experience grew and my offers evolved. I’ve also helped my amazeball clients set prices that they’ve been able to grow into larger and larger numbers, too!
Below, I’ve streamlined my fave rate-setting rules and advice in the Can’t-Mess-It-Up Guide to Pricing Your Offers.
Shake off that weirdness and put on your boss boots. It’s time to earn that $$$.
Drum roll, please…
- Determine how long it will take you to hand over your deliverable. Do this by taking into consideration the time it will take to prep, deliver, and follow-up with your client. Keep in the mind this is the first time you’re inventing the wheel, so don’t panic! Over time, you will become more efficient and the process will get so much easier.
- If you’re making products or goods, add in the cost of materials. This way, your production fees are covered and you can still collect your rate! This is also a way to demonstrate the quality of your deliverable. (i.e. fancier or nicer materials = a fancier nicer product = a higher rate!)
- Decide on your ideal hourly rate. In a dream world (and taking into consideration your experience and industry), what would you like to make per hour? Once you have a fair number, determine how many hours you think it will take you to complete the job given your timeline. Then, multiply your predicted hours by your hourly rate to get an idea of your actual price. (Example: if you’d like to make $50 an hour and it will take you 10 hours to get the job done — your magic number is $500!) Once you have a sense of your rate, you’ll need to…
- Be honest with yourself about your experience and price accordingly. If you Google hard enough, I’m sure you’ll find someone doing something similar to you for an extraordinary amount of money or no money at all. The person with the high dollar sign likely has years and years of experience, incredible testimonials, multiple success stories, or knew the right person — straight up. It’s OK. You can make money exactly where you are and increase your rates as your experience builds! Likewise, those people who are charging next to nothing? They’re also making next to nothing! And that ain’t what you’re here for.
- Consult with your gut on if your price is realistic for your client demographic. Be honest about what your offer is, who it’s for, and what it’s worth to them. Sure, we’d all like to make $1000 an hour, but if your client base can’t afford it, you won’t see any sales. Similarly, if you’re working with high-level professionals and setting your rates too low, your demo may view your offers as not very valuable or worth their time/money.
- Don’t do things for free in the beginning. If you provide a service for free, your client won’t be as invested in the outcome as you are. The chances of your guinea pig client ghosting or not taking you seriously is much higher, or they could adopt a misguided attitude that says they’re doing you a favor by being your test subject instead of the other way around.
- Do give your first clients a discounted rate to build experience and credibility. Offering your first few clients a discount is an awesome strategic biz-building move. It will also make it an easy “yes” for them to get on board, and hopefully result in returning clients. Plus, you’ll have the opportunity to build trust with these fresh clients and get the feedback/testimonials you need to keep growing!
- Don’t worry about how many clients you need to make a fulltime living in the beginning. It can be tempting to lay in bed at night and think “If I just land x amount of clients at xyz rate for x amount of months I can retire when I’m x years old.” Right now, this is not productive thinking. Right now, it’s all about the first client, then the next, then the next. As you build your business, gain experience, gather testimonials, and establish a client base, your rates will go up and your magic retirement year can get closer. That said…
- Focus on the now, and the later will fall into place. When setting your prices, focus on what makes the most sense based on where your business is at right now. Things like your geographical location, client demographic, personal experience, business industry, and quality of product could all factor into what makes a fair price. These variables will also change as your business grows, so don’t stress about the long game! You’re already playing it just by starting!
- Lastly, set your rate slightly above what feels comfortable to say out loud. Seriously. Do it. If you’re really comfy with your rate, you’re setting it too low! For example, if you are happy to charge $50 for your services, try making $60 your actual price point. By slightly tipping the scale in your favor, your clients will automatically have a sense of faith in you and your services and you’ll launch your business with a personal financial bang. $100 or even $75 is probably too much of a jump. You’re looking to feel just a *smidgen* squirmy saying your number out loud. That’s the sweet spot.
Feeling pumped to get to work, make some coin and drink some celebration wine? Awesome. My 90 Day Business Launch offer is the ideal place to start. Together, we’ll clarify exactly what your business is, what you can offer, and yes, what to price it all at.
No-obligation applications close this Friday, so get in there! It’s time to show you the money.