This is a hot topic right now amongst my coaching clients.
How do I know I’m charging enough?
Well there are two answers to that question.
Firstly, when you think about what you are charging, it feels bad for you. You feel like you are putting in way too much effort for the return.
Secondly, people are not buying what you are offering, or they are buying too quickly.
This second reason is a tricky one to get to the bottom of.
If people aren’t buying, it could be that your price is too cheap, or it could be that it’s just the wrong product or service for them.
If they are buying a lot, you may want to stay there because it’s working really well. Alternatively, it could be that a lot of people are buying because it is too cheap.
This is something that you need to come to self awareness about and uncover whether you are pricing according to your standards, yourself, your industry, your market, your location. I am not saying this to overwhelm you but to give you information so that you can price yourself accordingly.
So what’s the answer?
…understand your calibration point.
This means being able to energetically tune in and say, okay, this is a 6 month or 12 month program or bespoke package that I’m offering. It is going to take me X amount of hours and I charge $X for my hourly rate. So if it’s 10 hours and I’m charging $150/hour, the price is $1,500.
That is a simple way to start, but don’t stop there. Step back and ask if this price feels right for you.
If it doesn’t feel right, do you need to increase your hourly rate? Do you need to double or triple this?
Whether you double or triple your hourly rate depends on you. It depends on how bravely enough and how strongly enough you can back yourself and your work, the results and value it provides to other people.
When you do this you switch from operating in a commodity-based market to a value-based market.
What do I mean by this? Fristly, there is nothing wrong with a commodity-based market. An example would be selling $5 logos on Fivver.
However, are you a graphic designer of 25 years’ experience charging the same price for the last 10 to 25 years, and you haven’t realised that things in your industry have changed and the value of what you are bringing into your client’s world is exponential?
For example, say you build websites to a very high level that technically do what they need to do, and also look really beautiful and speak to a company’s brand and their colours and story telling. This level of website is going to increase the profit of their business, only you don’t know by how much.
The answer is to speak to your client to find out how much they think that package is really worth to them.
I did this early on in my coaching business and found it was appropriate for me to increase my fees at least ten-fold. Yes, TEN-FOLD!
I found out that my meditation practices, and my ability to coach people, to hit the nail on the head, and to provide a facilitation platform where I am bringing them into a space of deep self awareness so that they can see their own emotional blind spots and edge towards something that they have been chronically stuck on for years, wasn’t worth $500, it was worth $15,000-$20,000.
So I had to fit into that space and say, ‘Wow, I have a product here that isn’t worth $500, it’s worth $15,000-$20,000.’
The next challenge was to map and take that awareness and understanding energetically and practically from my client’s words into a product and offer that is line by line what they are getting, service by service, along every part of that journey.
Being able to increase your prices starts with questioning your own worth. It goes back to speaking to your clients and finding out what worth it really is. And last step, very practically, it comes down to the marketplace too.
For example, you might think or have been told that your house is worth $2M, because that’s what prices have been in the area and you might go to auction and the real estate agent has done a great campaign, and you might have a whole lot of people at your house and everything else, and they are only willing to pay $1.5M and then you sit in that decision of, ‘Do we go to auction again because we were told it’s worth $2M? Or are we going to listen on the day to what the market is showing us which is actually $1.5M?’ This analogy can be applied to your product and services.
Do you need help setting your prices? Reach out so we can talk about where to start.