Pricing your services march 20 2014

Pricing Your ServicesTips to help you price for more profit!

Presented by Jeanne Grunertwww.sevenoaksconsulting.com

How much should you charge?Do you know how much you need to make

per hour, per day and per week?Do you know how your prices stack up

against your competitors?Do you use pricing for strategic advantages?Are you charging too much?Are you charging too little?

Know What You Need to MakeTo determine how much you need to make per hour (your

pricing baseline figure), follow these steps:Determine how much in total, before expenses, you need

to make each year to stay in business (gross amount).Divide that figure by 50. There are 52 weeks in a year,

but let’s assume you take 2 week vacation.Now divide that figure by 5 days in a week to determine

how much you need to make each day….And divide THAT number by 8 hours in a day. That’s the

bottom line of what YOU expect or need to make per hour.

How does that stack up against your competition?

Competitive IntelligenceWhat is the industry

standard rate?Look onlineVisit trade

associations and industry groups

Look for news articles stating prices

How much are your competitors charging?Search their

websitesLook for pricing infoAsk!

Start a spreadsheet to track your competitors’ rates and industry rates. Average the prices together, weighing factors for experience, education and results achieved.The more education and experience, and the better the results achieved, the more you can charge.

Pricing for Strategic AdvantageDon’t create sales events for a service-based

business…can make your business seem cheap, ill-conceived, like a rummage sale

Instead, bundle groups of services, bundle hours, and offer discounts for prepayment or locking in services ahead of time.

Consider introductory offers at a lower price.Try not to get into pricing wars with

competitors…you’ll end up losing.People judge service consultants based on

price, with the perception that expense = results. Rock bottom prices are often a disadvantage to service-based businesses.

Are You Charging Too Much?If clients are saying,

“I can’t afford you….”

What they are really saying is:“I don’t see the

value”“You are not a good

fit for my budget”“Will I get the

results for my money?

Charging Too Much? Rarely do people charge too much.It’s probably more about the client’s budget

ORYou are not making a strong enough case for

the benefits your services bring to your clients.

Always sell from the benefits you bring to your service…how do you help others? What results do you achieve? Can you quantify those results with statistics, testimonials, case studies?

Charging too much…perhaps underplaying your value!

Charging Too LittleHow do you know you’re charging too

little?You’re working day and night but still

can’t pay the bills.People remark on how “cheap” your

services are (ouch).You resent your clients because you

constantly feel like you’re not making enough for the time and effort involved.

Your prices are significantly (20% or more) lower than others in the industry with similar skills and experience.

Ideas for Raising Your PricesHow to raise prices without pissing off your

clients:Decide whether or not you’re raising prices for

all clients or just some;Tell them in advance in a gentle way;Offer prepayment discount to soften the blow;Raise prices GRADUALLY. Don’t sock them with

a huge increase at once.Be prepared for the possibility of losing clients.Keep prices the same for long-time clients, raise

them for new ones.

Make a Case for ValueIf you ask for a penny, you’ll get a penny…

Know the industry, know your competitors’ prices, and make the case for VALUE – the benefits to bring!

For More HelpMy new book, “Pricing Your Services: 21 Tips for More Profit” shares these and other ideas for setting your prices and charging what your time is worth. Available on Smashwords, Amazon and your favorite ebook retailer. $3.99

Visit: 21tips.us

Contact MeJeanne GrunertAward-winning writer, blogger, and marketing

consultant

Seven Oaks Consultingwww.sevenoaksconsulting.com

Writing servicesMarketing writingMarketing consultingBusiness writing and

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