Published on 26th Feb, 2008 in Online Marketing
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.