It can often be difficult to gauge how much you should be charging for your services. As well as covering your expenses, you also want to charge competitively and ensure you are charging appropriately for your skill set. So how can you work out a competitive and suitable price for your services that reflects your level of professionalism and expertise?
Here’s some questions to ask yourself:
1. How many hours or sessions per week are you likely to work?
If you have just started out, the likelihood is that your hours per week are likely to be lower than somebody who has been in the business for a more substantial amount of time and has an established customer base – so be realistic here. It’s also worth factoring in paperwork and any other operational tasks, as these are also part and parcel of your work week.
2. How much do you think you should be making per year?
Looking at other specialists in your field, what’s your salary likely to be? This can all depend on your level of expertise, so consider whether you’re a beginner, intermediate or expert, and choose a figure accordingly. Your salary can also depend on where you are located (if you aren’t online-based), so rationalise a figure that also reflects this.
3. How much do you need to make per week to match that salary?
Dividing the annual salary by the number of weeks in a year (52), you’ll be able to work out a weekly salary. Be sure to include your overhead costs and expenses on top of this, so you can determine the weekly salary you need to receive in order to cover these also.
4. What is your hourly rate going to be?
From your estimations of your weekly salary and hours per week, you can figure out your hourly rate. Divide your weekly salary figure by the number of hours per week you chose, and hey presto, that’s your hourly rate estimate!
To give an example, if your weekly salary was £700, and you were likely to work 25 hours per week, your hourly rate would be £28.
Does your figure reflect your level expertise in your field? Is your rate competitive? Adjust your figure as necessary, making sure you still cover your overheads and allow yourself room to save if you need to.
Offering multiple services
The above can be applied if you have multiple services to offer, however, you may want to consider distributing your weekly salary per service, and adjusting the costs for each session as you see fit.
Deliver your service in multiple ways
If you offer one-on-one services, is their potential to offer it to a group? How about the other way round? Or even delivering your service online as well as in person? Allowing your customers to choose how they receive your service is a great way to show your flexibility and moldability toward their schedule and preferences, as well as mixing up your business dynamic.
Create more hours in your day
Could you create a bundle and carry out any of your services at the same time? Or if appropriate, opening services to multiple customers at a time? This is a great way to free up a heavy schedule and potentially create a community amongst your customers.
Consider working for free or at a discounted rate
If you have just started out, this is especially important for building a portfolio and establishing a customer base during the initial stages of your business growth. It’s a great way to competitively draw in new customers, all the while improving your skillset.
Charging per session rather than per hour
This can be very beneficial if you have a looser schedule and fewer time restrictions. As well as preventing discrepancies, it allows the customer to know exactly how much the session is going to cost upfront, without having time concerns. It’s also beneficial if you’re new to the field and take a little longer to carry out your service than somebody more expert.
How you price your service can say a lot about your business. It’s all about finding the right rate for you that reflects your skill level and professionalism, whilst still giving you a competitive edge.
If you have any thoughts or comments to add, feel free to share them with us @bookingbug or post them below.