How Do I Work Out What I Should Be Charging in my Business?
One of the biggest challenges business owners face. Why? As a Business Coach I hear lots of reasons. Ranging from ‘…But I love what I do, therefore should I be charging what I really think it’s worth’…’ to ‘people wouldn’t pay any more’. My response ‘Do you want to carry on loving what you do?’ and ‘How do you know?’
So, how do you, as a business owner get around this seemingly sticky issue of charging for what you believe you’re worth?
Take Stock of your Current Business Charges
Take stock of what you believe you’re currently charging for a particular product or service. Not just the final figure a client pays you, but really take into account EVERYTHING it costs for you to deliver that service or product, i.e. the actual time you invest in delivering that service so lovingly to your client. This is often grossly overlooked – to the point where business owners are often delivering a service and receiving payment that is below minimum wage! Passionate and enthusiastic business owners have a brilliant skill for over delivering, which is great. But you and your business do deserve to be paid accordingly, for true business growth to be realised.
Align your Services with your Qualifications and Time spent delivering
Cheapness of a product or service can be off putting if the cost or investment of a particular service does not match up with the expected qualifications and time and effort spent in a person or business attaining and maintaining them (continuous personal development) then this will most probably result in your customer going elsewhere. They are unlikely to even stop and ask any questions to understand more. Stop judging your product from your point of view and step into your ideal customer; what do they see, think, feel about the value? What would they invest in return for you taking away their ‘pain’ or issue?
Do your Current Services Offer Value
Value of what your client receives – some services can be hard to place a value on. Forget comparing what you offer with the competition, as how do you know if you’re comparing like for like? Business Coaching, for example, can offer a life-time of personal and professional value, what price would you place on happiness and fulfilment? How do you price up the professional life-time return on gaining complete clarity, structure and confidence for marketing campaigns or business presentations or winning customers? Being at the end of the phone, email whenever you’re needed…
You can; however, work out your time, your investment in your own skills and ability to deliver and your many years of experience to boot.
Think like a big business, after all it’s likely your overheads match, albeit on a scaled down version…
Clare at Meta4 has been running her own life and business coaching and training business since 2007. Clare offers loads of great business growth freebie resources to help you grow your business; they’re easy to implement, engaging and most of all they get you your business growth results! Access them here or get in touch to book your consultation.