If you ever feel less than confident about your prices, you aren't the only one. Pricing is my most requested 1:1 service and with good reason! It's tricky trying to work out how much to charge - you want to avoid undervaluing your work while making sure your customers feel that they're getting a fair deal.
Here are three things you need to take into account if you're thinking about changing your pricing up.
If your prices aren't catering to your customers, they won't buy from you. Simple as.
So think about who you want to appeal to - their budget, what they value in life and how they spend their money. It's pointless charging sky-high prices if you're targeting broke students and it's equally as pointless being cheap as chips if you're trying to break into the luxury market.
I know a lot of people advise against comparing your prices to your competitors' and that's valid, as you're bringing your own unique skills and experience to the table.
However, by checking out others in your industry you can get an idea of the average prices and what people are expecting to pay. Research three businesses in your industry, or which you admire, and find out how much they charge. You don't have to change your pricing to match theirs, but it will give you a good idea of what your customers will be expecting to pay and an idea of whether you're undercharging.
How much money do you want and need to make to make each month, and how many customers would you need to serve to get to that figure (plus tax). Is it realistically possible to achieve without working 24/7? And are you getting back the amount it costs you to provide your products or services as well as a profit? If not, then you need to have a rethink.
Remember, your prices need to work for you as well as your customers. That's why you have a business, not an expensive hobby.
How did you set your prices? Was it a difficult decision, or did you instinctively know how much you wanted to charge? Leave a comment and let us know!
I'm a financial coach helping female business owners to to manage their money and grow fulfilling, financially sustainable businesses. If you're ready to build a business that allows you to focus on your passions and work on your own terms, click the button below to find out how I can help you to master your money, tax and pricing.
I also create courses and resources to help female entrepreneurs to manage their business finances.