Does the question ‘how much do you charge?' fill you with dread?
You’re not alone! Many of us find pricing our services a challenge. Especially when we’re working on different projects that come in all shapes and sizes. There’s no ‘1 price fits all’.
Female entrepreneurs, in particular, have a habit of underselling themselves. Yep, I’ve been guilty of that in the past too. We aren’t doing anyone any favors for not charging our worth.
Here are some tips to charge your worth as a business owner or freelancer….
What are the actual costs?
Always start by working out what your actual costs would be to deliver the work or project. Including everything from travel costs, supplies, to technology. or anything that you will have to pay to get the project completed.
The biggest thing is that we forget to charge for...our TIME!
Your time is not free. Remember that your client is tapping into your expertise or your network of contacts.
It took you years of investment to acquire your knowledge and contacts and taking advantage of that is a cost you must charge for.
Work out how long it will take you to deliver the project
Add some more time on for the unexpected time things take. It always takes longer than you plan. So it's better to factor more time in. You cannot go back to the client later and ask to be paid for extra time spent.
I’ve never known a project or service not to overrun even if just by a little. Give yourself a good buffer.
Price in your skills and expertise
People are coming to you because you are an expert in what you do. You have the skills and expertise that they need to make their project come to life. Be it web design, accounting knowledge, coaching skills…or whatever area you work in. You have what they need.
Getting to where you are right now didn’t happen overnight right? I’m guessing you had to study and invest in your education. Possibly you took on lower paid jobs in the early days to get experience. All of this needs to be taken into account when pricing your services.
Clients aren’t just paying for your time, but also your experience and knowledge.
Look (and be) the part
If you’re a web designer charging premium prices, but your own website is outdated, has broken links and doesn’t reflect a quality brand, why would anyone think you’ll do differently for them? Your brand needs to reflect the price you’re charging. Do you want to charge a premium price? No problem. Just be sure you’re offering a premium service and have the credentials to back it up.
Taxes and extra costs
Don’t forget to include and work in the cost of any taxes to your pricing and don’t forget that you will be taxed on the profits. Personally, I quote all my prices tax-free and then add a note that all prices are plus taxes. In most cases, the taxes are recoverable to the client.
Have confidence in yourself and your abilities
Most of all, have confidence in your skills and abilities. If you don't then you will never charge what you are worth because you're downgrading the value of your services. If you have confidence that you can deliver an amazing result for a client, then toot your own horn if you must. Self-confidence breeds confidence in you by third parties.
Got any other pricing techniques to help you feel more confident charging your worth as a business owner or freelancer? We would love to hear them! Share your tips with us below…
Want to chat with me about your pricing, book a FREE call at www.calendly.com/lorikarpman.