Even after 23 years of being in business, I still have a hard time determining how much to charge. Often times, I find myself underselling myself and then leaving little to no room to “upsell,” because I down sold too much in the beginning.
I thought I had it down for a while. I knew how many hours it would take to run a project and charged accordingly. But lately, the competition seems so incredibly fierce. Everyone seems to be undercutting each other by half or more. It makes it feel impossible to operate a business, let alone make any type of profit.
So when Jeanne Grunert asked me to read and review her new e-book, Pricing Your Services: 21 Tips for More Profit, I was thrilled to oblige.
Grunert offers 21 solid tips throughout the book on how to go about pricing your services. She says to first think of what you want to make, than divide between the hours you can actually work to get an hourly rate. Now this works if you are working out of a house and have no other overhead. If you have overhead, then there is a host of expenses you need to consider to calculate your hourly rate.
She also talks about checking with your competition. Find out what they charge and make a list so that you can judge where you fit in.
Grunert says, “Remember that excellence doesn’t come cheaply. Don’t price your services low just to get more customers. Price for value, price for experience, and price for the benefits you provide to your customers.”
Some of the helpful points she makes include: bundling packages together to create value added, and creating a price sheet and offering trial packages (low prices in lure in potential customers). Grunert also talks about whether or not to publish your price list online and offers interesting pros and cons to both. She also suggests that you should track your time and your expenses.
The last tip focused on self-talk and realizing that you really do have something to offer. Don’t give it away for free. Remember, Grunert says, “Think that you are selling diamonds and others will see it that way too.”
Jeanne Grunert is an excellent writer and outstanding communicator. The e-book is well organized and offers a ton of value to someone just starting out. If you are a start up business or thinking about going into business, this is one to pick up for your bookshelf. But don’t leave it there, read it. You will find value.
Thank you! This topic always fascinates me.
Thank you Cloris!