What do you want to charge for your services?
Before I go into my whole process, take a mental note of what number came to mind.
Intuitively, I think we all have a number. Something that just feels right. We know what we want to charge but have 47 reasons why we can’t or won’t let ourselves do just that.
Whatever your number is, here are five practical ways you can justify charging what you want. Oh and the only person you have to justify your pricing to…is you.
1. Know Your Operating Costs (for life + biz)
When I started Her Business Boutique as a passion project back in 2014 I definitely wasn’t thinking like a business owner.
But now that I’m in my third year of bizniz and this is my sole source of income it feels like a no DUH moment to get clear on the numbers, like how much do I need to charge to really make this a viable endeavor.
Don’t start with an arbitrary number like 6 figures. If you have an Anthropologie habit you may need to make more (you totally will). Really do the math for YOUR life and start with what you need to make first.
What do you spend in a typical month? Start there and make sure to include all personal expenses, business expenses plus setting aside money for taxes and time off.
Once you have that number, think about how many clients you can reasonably work with at any given time or how many units you would need to sell to hit that number each quarter.
Side note: This is the exact tool I use to map out my lifestyle & business costs. It’s free if you want to grab it now.
Example: Sam is a health coach and needs to make 60k a year. She wants to take summers off to be with her kids so her goal is 20k per quarter. She can work with 10 clients max in her 90 day program so knows it’s time to double her current pricing from 1k to 2k. Only problem is she can’t fathom doubling her pricing
2. Go Forth & Find Proof
You’ve decided you’re going to charge X. If your new price is 2k don’t talk to your colleague who charges $75 dollars an hour and is strugggglin. NO NO NO! You’ve got to find people who are charging at least your new price or MORE.
Be really mindful of who you surround yourself with and the people you go to for “business advice”. I don’t ask for advice from my friends who are 9-5ers about my business anymore. They don’t get it.
I don’t even talk about my online business to people who don’t operate an online biz because most people don’t get this either! Find 3 people who do what you do and are successfully charging your new rate and at least one person who charges double. And then move on to step three.
3. Do What They Do
You know what you need to charge to make your biz work. You’ve even found proof that others are doing this exact thing.
So when your brain wants to scream IT’S NOT POSSIBLE NO ONE WIL PAAAAAY, you know it’s a lie. And you’ve got proof to prove it 😉
Now it’s time to do some detective work and objectively look at what those business are doing that you’re not.
What would you need to change or who do you need to be in order to make that level of pricing an actuality in your biz?
Do you need stronger testimonials? Professional photos? Endorsements by local press/media? Make a list of what actions you can take to elevate your biz and schedule it into your calendar each week.
4. Recondition Your Brain
We’re all conditioned by our pasts, society and who knows what else (robots) but the bottom line is if for years you’ve thought that x is TOO much or no one would pay that amount you’ll need to put some daily time into changing your mindset.
One way is to imagine charging double your new pricing until your current price feels like eh, no big deal. Another is to practice saying your pricing as casually as you’d say “pass the salt, please’.
Oh and affirmations totally work. When you really feel it as you say it as if it were/is already true.
Here’s one I love that I wrote with dry erase on my bathroom mirror.
“I am creating a new script with money. Thanks, money, for changing your experience with me. I am ready for more.”
5. Own Your Worth
If you write out all the experience, training, certificates, time and money you’ve put into your craft and business I’m pretty sure you’d have zero problem with charging what you want. When I did this exercise, I saw that I’d invested over 100k and had decades of experience to bring to my lucky clients.
Grab a pen and paper and add up every piece of experience you bring to the table (even books you’ve read).
Make sure to include the money you’ve invested next to each item.
Write down the life changing results your clients get from working with you. As service providers we’re doing transformational work no matter what you’re selling. Being of service is that deep. Dig for the gem your clients get in working with you and own it.
Want my handy dandy tool to figuring out how much you need to make for your biz to be profitable and your lifestyle super sweet?
Do you struggle with pricing your services or increasing your rates?
Would love to hear your thoughts in the comments below!