Are you Pricing your Services Right?

by Shama Hyder

This is perhaps one of the most commonly asked questions that I hear. What does it take to charge clients a premium amount? What makes it worth it?

How do I price my services?

I am a big fan of value pricing. This concept is the brainchild of Alan Weiss, author of the "Million Dollar Consultant."

In simplest terms, it means charge for the value you provide, rather than for your efforts. It may take you ten hours or ten minutes, but it’s the outcome that matters.

1. Sell the Solution, Not the Methodology

People hire coaches but they aren’t buying the coaching. They are buying what the coaching can provide. The final results. Whether that’s an improved relationship or better health; people care about results.

You are selling the final outcome. If you are a Virtual Assistant, you aren’t selling hours. You are selling peace of mind and giving your client more quality time with their family. Focus on the solutions, rather than the methodology.

2. Add Unbelievable Value

Every industry has it’s standards. Find a way to surpass those and you are almost guaranteed higher fees. Most coaches for example meet periodically with clients over the phone. Very few constantly send them useful books in the mail or regularly introduce them to new tools and practices.

Even fewer spend time educating their clients on how to maximize results from the coaching process.

What can you do to enhance your work?

3. Compare your Fees to the Final Outcome

If you can help a company save one million dollars over 5 years by helping them cut down employee turnover rate, how much are you really worth?

If you help a couple restore and revive their dying relationship, how much are you worth?

When you start looking at how your work impacts the bigger picture, you will easily be able to command higher fees.

4. Trust and Courage

It’s not easy to ask beyond what the current market is going by. But it can be done. You have to have the courage to ask what you feel your services are worth, and you have to trust in yourself. Focus on the value your services provide in the long run.

Clients can sense confidence. If you feel you lack confidence in your abilities, work on that first.

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  • Vicky

    Excellent article. I am asked these questions in my Virtual Office business quite a lot. How do you figure pricing and what do I get for it. I use some of your techniques. Especially the final outcome. I save employers time and money and that is certainly worth what I charge.

  • http://www.websitespeopleread.com Deborah

    You are so right – I love Alan’s book – lots of good advice. As a writer, I’m selling words. I’ve had people say – you charge WHAT? But it just a page of words. Yes, but if those words help to open a door, fill out a form, pick up the phone, visit your site, establish trust and then ultimately connect to a purchase they are really more than just a string of letters across the page.

    Good advice – thanks for spelling it out for us.

    Deborah

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  • http://www.intuitivedesigns.net Naomi Niles

    We’ve actually doubled our rates during the last year or so. I was initially scared to do it, but the funny thing was, we get the same amount of new clients as before. You just never know until you try it. We still have some clients on old rates that we aren’t sure what to do with yet though.