Pricing Tips For Service-Based Business Owners:
When it comes to pricing your services, there is no perfect price or magic number, in fact, it isn’t just about money… it’s about ensuring that you own your worth.
Here are my top ten do’s and don’ts when it comes to pricing in a service-based business:
DON’T use words like ‘price’ or ‘cost’
You are not a commodity, and you are not selling one either. The service you provide is a transformation for your client, creating great results for them. Words such as ‘price’ or ‘cost’ are not energetically linked to great results and transformation.
DO say ‘investment’
Your clients want to thrive in the area you are an expert in, and they value the investment in your service offering which can help them make a transformation.
When your client views your services as an investment, their mindset is focused on the results and transformation they will experience, rather than on the price.
When you hold the belief that your fees are an investment and not a cost, you are owning your worth.
Undercharging undermines your credibility and your confidence. It also stops your business from being profitable enough so that you can thrive.
Clients also respect what they pay more for. So by avoiding undercharging, you’re telling the world you believe in the results and transformation youcan make in the lives of your clients.
DO decide on your pricing based on transformation & results, NOT time
If you wanted to trade hours for money then you would have a job, right? So when it comes to your business, the solution is to offer packages that are focused on the specific results your solution creates plus the transformation that will occur.
The client is paying money for the results and transformation, not the number of sessions or hours spent with you. In fact, many clients will pay a premium price for getting the results in a short timeframe.
DON’T assume you know what a client can afford
Many people are willing to step up when it’s for something they really want and know will help them achieve their desired outcome. Let them make that decision for themselves as to whether they can afford your service.
DO raise your prices, frequently, in the first 3 years of business
When new in business, or when you offer a new service out to the world, it’s a good strategy to start with a low price (not cheap, just lower than you would like to be ultimately charging).
Then as you gain experience creating results and transformation for your clients, your confidence increases, and you’ll definitely want to level up your fees to match it.
DON’T give your services away for free, even when starting out
Giving away coaching for free results in setting yourself up for struggle, trying to coach people who are not committed, who don’t value your coaching or who won’t take the coaching seriously.
DO offer a payment plan option
Offering a payment plan option will certainly help you sign on new clients. You need to keep in mind though, that this is not a ‘pay as you go’ option and your clients can not drop out at any time without paying the full investment of your service/program.
DO incentivise your client to pay in full
This applies to your services as well as any online courses. Payment in full gives you a positive influx of cash into your business. It also gives you a client who has shown one hundred per cent committed to working with you.
Make sure that your incentive is valuable enough for the client to part with their money upfront, but is not going to cost you. Choose something like an online product, which is created once and can be used over and over again.
If you DO put your fees on your website, DON’T make them the emphasis of your offer
There is a big debate as to whether you should put your prices on your website, or only let the client know the amount of their investment, once you have sold them on the benefits during a sales call.
There’s logic to this. And if you want to follow this way of thinking, that’s great – don’t put your prices on your website.
BUT if you want people to know the amount of investment they need to make in coaching before you get on a sales call with them, or have a messenger discussion, then go ahead and quote your fee on your website.
The key, when putting your prices on your website, is to not have the monetary amount anywhere prominent. You don’t want to hide the fee level, but you don’t want it to be the focus of your sales page. You want clients who are attracted to the transformation and results that you can provide, rather than making a buying decision based on a monetary value.
If you found his useful, then grab a copy of my free report on pricing, detailing these top ten tips.