Do you ever second guess your pricing? This is one of the most common dilemmas I see in new entrepreneurs and small business owners. So how do you figure out what you charge?
There are a couple of things you want to keep in mind.
1. Figure out your hourly rate
How much are you making per hour? You can find this out by dividing your price by the number of hours it takes you to complete the project. Based on this, ask yourself, am I being paid fairly?
2. Do some market research
Find out what the average price is for your offer. Are you too low? Or a little too high? Price yourself based on your skills, talent, current portfolio, and years in the industry.
Just starting out? That's ok, as you continue to build your portfolio, gain experience and make connections,
you can adjust your rates accordingly to
industry standards.
3. Cheaper doesn't mean better
When I see people offering brand development for single, double or even triple digits I know something is off. They aren't providing you what you truly need to build a successful business, so don't be that person.
You want to attract clients who value your work and don't look at you as a commodity. Bargain-hunting clients are generally people who need to be educated on the value of your service and once they are they are willing to pay for it. Even if you lose some business - trust me the clients worth having will stay.
4. Track your expenses
Your expenses should factor into how much you charge. If you're just starting out - track year one and adjust your pricing accordingly.
5. Work backwards
What do you want your yearly salary to be? Now how many full-service clients or products do you need to sell to get to this number. Is it possible? If not adjust your price point to make it possible. When working with my client she was shocked to realize that she only needed 15 clients per year to reach her goal salary - she already booked 12, so it was just a matter of getting a few more.
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Remember if you don't value your worth then no one will, so never work for free or exposure - I promise you it's a trap! As long as you're bringing forth a valuable service or product you'll have clients who are willing to invest in you.
Have more questions about your business? Book a 1:1 Brand Audit and Coaching session and let us walk you through changes you can implement to set your brand up for success online. Click here to get started.