How Much Should I Charge?
Pricing tends to be the most stressful element of owning a business. We all have money blocks and are surrounded by opinionated people who have a tendency to tell us we’re too expensive.
But here’s the thing- running a business is expensive!!!
We pay double the taxes that employed people do, we have to pay for our own utilities, software, and office supplies, and there are many unbillable hours that we don’t get paid for.
So pricing is essential to nail right out the gate.
Okay, so how much should you charge?
There are two methods.
Method 1 is to check out the rates of your competition and adjust based on your skill level, experience, and number of years in business. Or if you offer a product, what’s included and the quality of the product.
The second requires a bit of math but is way more effective. You'll calculate your expenses, taxes, and desired owner's draws then reverse engineer what you need to charge.
Need help with the math?
The tutorial below is part of Module 4 of my no cost Begin Your Business online course. Enroll for free to access the business budget template!
Should I include pricing on my website?
YES!
This is a huge debate in the business world - whether you should make your pricing public or not - and I am firmly on the side of transparency.
I believe that your pricing should be public because it saves everyone’s time. People are less likely to reach out to you if they have no idea what your ballpark rate is, but also, you’re likely to receive inquiries from many people who are not at your price point. Instead of spending time with a free consult and sending a proposal only for the potential client to say you’re out of their budget, you’re more likely to get quality leads.
The anti-public pricing team’s main argument is that you want people to reach out so you can nurture them and prove your value. While this may work for some industries (particularly coaching and if you manufacture products specific to customer specs), your product or service is your value. The point of your website is to demonstrate that value.
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Just getting started in business and looking for a roadmap? Check out my free Begin Your Business online course. We’ll cover everything from pricing to forming an LLC, assembling your team to getting your first clients, and everything in between.
Been around the business block and looking to grow? My Self-Employed School online course provides a deep dive on topics including website SEO and design, e-newsletters, social media, public relations, and more. It all culminates in creating an easy and effective marketing strategy for your business.
