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Pricing your services march 20 2014


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Are you charging too much, or too little, for your time? How much should you charge? How do you set prices in a service-focused business, such as writing, consulting and more? This presentation shares five important tips for setting your prices.

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Pricing your services march 20 2014

  1. 1. Tips to help you price for more profit! Presented by Jeanne Grunert
  2. 2. 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?
  3. 3. Know What You Need to Make To 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?
  4. 4. Competitive Intelligence  What is the industry standard rate?  Look online  Visit trade associations and industry groups  Look for news articles stating prices  How much are your competitors charging?  Search their websites  Look for pricing info  Ask! 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.
  5. 5. Pricing for Strategic Advantage  Don’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.
  6. 6. 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?
  7. 7. Charging Too Much?  Rarely do people charge too much.  It’s probably more about the client’s budget OR  You 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!
  8. 8. Charging Too Little  How 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.
  9. 9. Ideas for Raising Your Prices How 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.
  10. 10. Make a Case for Value If 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!
  11. 11. For More Help My 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. $3.99Visit:
  12. 12. Contact Me Jeanne Grunert Award-winning writer, blogger, and marketing consultant Seven Oaks Consulting Writing services Marketing writing Marketing consulting Business writing and ghostwriting