The most stressful decision for anyone to make i.e. what to charge for your services and products?
First, you’ve got the competition to consider. Next, your own skill set to determine the market rate. What you perceive to be your skills in your niche, and to be a host of other areas. Working all these out can feel like a hurdle to anyone.
Knowing what to charge for your service or product involves certain key factors. Of course, there are many strategies you can apply to make sure your business is a profitable one in the long run.
a) The Hourly charge. Your target annual salary and divide by the number of working hours. However, if you are a freelancer, you probably want to add a certain percent of charges to the hours spent on the project. This will instantly inform you what you need to be charging for your professional fee.
b) The Product charge. Check on the product cost plus other administrative and marketing costs and give the profit margin of 20% to 50%.
c) Creating a more solid pricing structure will require you to do a little more work. Such as digging into your competitors and researching on their prices. Most coaches and service providers do not publish their rates openly. This might take a little detective work by signing into their email list and visiting their websites or social media to find up more.
d) Don’t undervalue or over-sell yourself. While you’re comparing yourself to another provider who shares the same skills, market and track record, make sure that you need to be different with others. You have to strive to become more unique, considering the benefits your customers gain from using your services or products.
e) Certifications and educational programs that allow you by virtue of having achieved them—to charge a certain rate. If you’ve followed this path, then pricing will be easy for you. If not, it might be some experiences and work at what you can legitimately claim as a skill.
f) Your track records: have you any proven records by helping former clients. Do you have the testimonials and case studies to show your potential customers? Have your former clients or customers offered to tell their success stories. These are all reasons to consider a higher price range to charge your services or products.
g) Your Market: In the game of setting rates, it’s your market that has the final say. The price of anything lies where what the buyer is willing to pay meets what the seller is willing to accept. There is no right price.
h) For the newbies: If your goal is to give newbies a helping hand and lead them down the path to success, that means you can look forward to low paying gigs. That’s not a bad thing as everyone has to begin somewhere, but it does need to be acknowledged.
i) If your target market is more established or high-end product, then a higher fee isn’t just justified—it’s a must. They will expect you to request a higher price, and will not find value in the lowest-cost provider of anything.
Finally, don’t forget that pricing is always flexible. If you find you’re attracting the wrong market (or no market at all) you can always change your rates. Working too hard for too many orders but enough return? Raise your rates.
After all, It’s your business. You get to call the shots. Eventually, it all sum up to the Market value, You and your Brand, a competitive charge and the volume of works/services/products you offer.