5 Pricing Strategies For Your Online Service-Based Business
As a new entrepreneur, setting your prices can be a very tricky thing. On one hand, you don’t want to under price yourself. But on the other hand, you also want to make sure you’re charging your worth because you’re super awesome and the goal is for you to be profitable. So how do you find that sweet spot? I’ve got you, boo. Here, I’m sharing with you my top tips and pricing strategies for setting the perfect price for your service.
Ignore Your Competition
Although I do think it’s a good idea to scope out your competition and see how much they are charging for their services, this shouldn’t be the determining factor your prices.
At the end of the day, you have to set prices that feel good for you. You don’t know exactly what their service includes, how much experience they have, and you have no idea what kind of limiting money beliefs that affect how much they charge. So don’t let your competitor’s prices set the bar for you. YOU set the bar for you.
Don’t Be Cheap
When you’re just starting out in business, it’s easy to think that if you price your service really low you’ll book more clients but this is totally not the case. It’s a lot easier to book one premium client than it is to book 10 cheap ones. You’d be surprised how many people are willing to whip out their credit card to pay a premium price for a top-notch service.
This means that you’ll be able to hit your income goals much easier and it also means that the quality of your clients will be much higher as well. The more people invest, the more they are committed to their goals and these are the type of clients you want to be working with.
Not only that, but your prices say a lot about you and your business. If you charge a premium price, it makes a statement about your credibility and your expertise.
When most people shop, they abide by the mantra of “getting what you pay for.” So if your price is too low, it might actually turn some people off. They won’t trust it. So don’t be cheap with your prices.
Think Of The Long-Term Benefits
When deciding what to charge for your service, I want you to think about all the benefits your service will provide even beyond the time you work with the client. How is your service going to continue having an effect on their lives and what is that really worth? Remember that your client is not paying you for your time, they are paying you for the results you help them achieve.
Get Clear On Your Income Goal
A really practical way to decide on a price for your service is to first get clear on how much money you want to make each month and then divide that number by how many clients you want to work with at one time.
So let’s say your goal is to make $5k a month as a life coach and your coaching program is three months long. If you want to work with no more than six clients at one time, that means you need to book two new clients per month and charge $2,500 each to hit your income goal. Make sense?
Choose What Feels Good
At the end of the day, the most important pricing strategy you should use in your business is your intuition. Your price has to feel really good for you. You have to be energetically aligned with the price tag. That means that you have to 1,000% believe that your services are worth that price.
Play with different prices to find the one you’re energetically aligned with. Pick a number and sit with it for a little bit. Meditate on it. Tune into your body and see how it feels. Listen to your intuition. Imagine telling a potential client that price. How does it feel?
If it feels too easy, raise that number a little bit and then sit with that new number and repeat the process.
Your sweet spot is the number that makes you super excited and makes you feel well compensated but it also scares you and stretches you a little bit but not so much that you don’t believe someone will pay you that amount.
This is where the money mindset work comes in, which is why I always cover with my coaching clients. Setting your prices has a lot to do with owning your worth, developing unshakable confidence as an entrepreneur, and overcoming any money blocks that are holding you back.
Once you start booking clients consistently, you can start to slowly and incrementally raise your prices and bring in more of the mindset work to help you strengthen the belief that you are worthy of charging more.