So you’ve decided to start adding services in your business. But you have no idea how to price them.
That’s normal for most business owners.
Maybe you’ve just started your business and you really just don’t know what to charge.
Or maybe you’ve always offered products before and now services are a completely new ballgame to you.
It really doesn’t matter where you are in your business and that you’ve now decided to offer services in your business.
Just start offering those services. With services, you can usually make more money by working less. (Keyword here is usually, not all services mean you will work less.)
First things first - decide what is included in your services
Before I can help anyone with their pricing, I always have them explain to me what is included in the offer.
So sit down and write out everything that is included in the offer that you are going to sell. What am I going to get when I sign up to work with you?
How long are we working together? 1 month? 3 months? 6 months? 12 months?
Do I get weekly or biweekly phone calls? Or just one call a month?
Do I get messenger services to talk to you between calls?
Are you going to prepare homework and worksheets and workbooks for our meetings?
Are you going to deliver something specific?
It doesn’t matter what it is, just sit down and write it all out. Write out everything that is included in the package.
Also remember that you can change the package at a later date if you want to. You are the business owner and just because you create it today, doesn’t mean that you can’t make changes to it later down the road.
Figure out the value of what you are offering
Now that you have your list of what is included in your offer, you need to put a value on these items.
By having the total value of the package, it will also help you come up with a price for your services as well.
What is your hourly rate?
What is the hourly rate that you want to earn per hour in your business?
Basically you would figure this out by working backwards from your end goal. The end goal is the total amount of money you want to make in your business for the month.
So let’s say you want to earn $10,000 for the month in your business.
There are 4 weeks in the month, so that’s $2500 a week that you need to make.
If you only want to work 20 hours a week, that means your hourly rate is $125.
Therefore you need to make at least $125 for your services. But that is not how you are going to price your services.
Now to price your services
You have the total value of your offer and your hourly rate.
How many hours are you going to spend working on your offer with one client over the course of a month?
If you have weekly calls with your client, plus you allow your clients to message you throughout the week and you spend an hour before each call doing prep work, you are spending approximately 10 hours per client in your offer each month.
At your hourly rate of $125, you should be charging at least $1250 per month for your services for each client.
But maybe you also see the value of your services and you price it a tad bit higher at $1500 a month.
You also have to do what feels right to you. And also consider the transformation that your client is going to get at the end of working with you. These are also considered in your price.
Consider pay in full discounts as well
You may also want to consider offering an incentive for your clients to pay you in full.
If your client is buying a package that lasts for 3 months, they can pay monthly at $1500 a month or they can pay in full for about $4200.
Again, you need to do what feels right for you.
Stop Overthinking your Pricing
Many business owners overthink their pricing. It’s common because this is a topic that just isn’t easy for most people.
You really just have no idea what to charge. You want to make money in your business, but you also want to make sure your client is getting what they pay for.
Do the work I described above and see what comes up for you with your pricing. Are you comfortable with the number that you end up with?
If you aren’t comfortable with that number, you may need to do some mindset work to figure what is holding you back.
If you would like to work with me on your pricing, I have a few spots open for a session with me. You can book a 1 hour session with me here.
