How Much Money Should You Charge For Your Services?
If you are like me when I started my business, you are probably not charging enough money for your services. Most service providers whether it be music lessons, photography, baby sitting, etc tend to start by charging way too little for their time.
Common Reasons People Charge A Lower Price
Lack of confidence (I felt like this)
Not enough knowledge or skill (I thought this)
No experience serving in the field (I had zero experience teaching)
Competitors are also cheap
As you can see, most of these reason stem from a lack of belief in yourself and your abilities. If you believe in yourself and your ability to get your customer the result they desire, then you should be able to charge whatever you want. Even if you are the most expensive in your area. If you feel comfortable with what you are charging, then chances are, you are not charging enough money.
Why You Should Charge A Higher Price
Your time is valuable
Attracts better and more committed clients
Signals that you are experienced
You will enjoy your work more
These are just a few of the reasons why you should charge a higher price. Remember, you get what you pay for. When someone sees a low ball price they psychologically start asking questions about why that price is so low compared to the others. Now imagine the opposite end of the spectrum, where something is much higher than the competition, psychologically people assume it is better because it costs more.
Use this to your advantage, but also make sure it's true.
Think about the type of clients you are attracting to your business.
If you feel your clients are not at the caliber you want, then increase your prices and watch the uncommitted tire kickers fade away. Sure you will probably get less clients to inquire about your services but you will also get better clients to work with in the long run.
Many entrepreneurs hate what they do because they feel they do not make enough money.
I understand not everything is about money, but when you are underpaid, it never feels good. Understand that your time is very valuable and that once an hour is gone you can never get it back. When I first started teaching guitar, I was taking students at $100/month for 30-minute lessons. You couldn't even work with me for an hour now at that rate. I will only take on clients that are willing to pay for my shortcuts, experience and expertise and so should you.
Your competition doesn't always know best.
Just because a competitor is charging $20/hr doesn't mean that's what you should charge. In every market there will be bargain competitors. That doesn't really even make them competition, if you are trying to offer a quality product and service. You should research your competitors, but don't assume that they are priced correctly or know better than you. My business is priced about $70/month more than many of our competitors. But, I guarantee you that no one offers the kind of product and customer service that we offer and that's why people are willing to pay the money.
Remember, people are paying for a result, not your service.
If you are looking for help with your business, feel free to contact me directly.