Do you know how much to charge for your services? Concerned about charging too much or not enough?
Here’s are tips to help you determine a fair market price…
- What do you need to earn to cover your expenses? This should be your first step.
- What is your competition charging? You can post a question on Reddit by going into the appropriate Subreddit and flat out asking. You’d be surprised at what people will tell you. If you know of other forums specific to your profession, ask there too. You can certainly undercut the competition by pricing lower, but if you do this, be sure that your prospective clients know that it’s an introductory price, or your “grand opening” special price. Never let them know you’re simply trying to undercut.
- The actual price you charge is the value your clients perceive. This is important to understand. If you price your service at $50.00 an hour, and your competition typically charges $100.00 an hour, your clients won’t perceive you as a better deal. Instead, they will perceive you as being amateur, unprofessional, and not worth their time. So if you do plan to price yourself lower than the competition, make sure your clients understand “why” you’re charging lower.
- Offer a package deal instead of a lower price. If you want to make your service more competitive, considering adding more value instead of charging less. For example, if you’re a motorcycle repair shop, charge the same price for an oil change as the competition, but add a couple more services to that, such as checking tire pressure, tightening drive chain, and washing motorcycle.
- Create an upsell path. Make sure there is a way for you to sell additional, related services, that don’t add much more time and labor to your bottom line. This allows you to price your popular services at the competition’s price, but earn profits on extras.
Here’s a video we shot a year ago, where Sash shares some insight about “What is your worth?”