4 Steps to Get Out of Your Own Way When Pricing Your Services

I am going to be 100% real with you. No sugar coating or dancing around the topic. There is a strong possibility that you are not charging enough for your services. Though I don’t have hard data, I am confident that women operating their own businesses are more likely to undervalue their work. Determining price point is even more difficult if your business provides an intangible product. It boils down to putting a price on you. To say that is difficult is an understatement.

If you feel comfortable stating your prices, you are probably not charging enough. Your prices should stretch you beyond your comfort zone.

I have been there. Honestly, I am still there, but I have a 2-year plan to reach my goals. I want to share my experience and some actionable steps that can help you with yours.

I started my financial coaching business in June of 2018. At that time, I did not charge fees for my services. I helped clients for free, partly to gain experience, but mostly because I lacked confidence that my services were valuable. In December of 2018, I started charging professional fees. In June of 2019, I increased my prices by a significant amount, and it has transformed my business.

Here are some things that helped me:

1–Understand Your Value

 This was the key for me. Initially, I did not realize how valuable my services were. Though I witnessed my clients making positive changes to their money management, I didn’t fully understand the extent to which my services had impacted their lives.

Think about your ideal client and how your business can add value to their life. Think about all the peripheral benefits that your services provide. In my business, by reducing my clients’ financial stress, I improve all aspects of their lives. Stress seeps into everything. Reducing stress has a significant positive impact on overall quality of life.

 2—Know that People Perceive Your Value Based on Your Prices

It seems crazy, but it is true. If you charge a low price for your services, people will think that it has low value. When investing in a service, the perception of cheap service can scare potential customers away. A higher perceived value will attract premium clients. Premium clients make your job easier. I have experienced this in my business. A higher investment in your services means that your client places a high value on the service that you provide.

 3—Understand that Higher Prices Make You Grow and Show up Better

When you attract premium clients, they push you to show up better. Premium clients put in the work required to get the most out of your services. They accomplish tasks and hit goals faster. This will push you to stretch and show up better for all of you clients. This will level up your business!

 4—Believe that Not Everyone is Your Ideal Client

You can’t provide your services to everyone. Some people will not understand the value of your services. Those people will never be your ideal client. It seems counterintuitive, but narrowing your target market and pinpointing your ideal clients will only benefit your business. It is important to understand who you want to work with. Think about previous clients whom you were excited to meet with every time and let that guide you to your target market.

What can you do? I know you were likely expecting this, but raising your prices will increase the perceived value of your service, thus attracting premium clients. The most difficult part of a price increase is transitioning your current clients to the new prices. To make the transition a little easier for my clients, I have mapped out my increases for the next few years so that my prices increase gradually. This also helps me as I gain confidence in the value that I am adding to my clients’ lives.