You’ve put in all the hours of hard work.
And now, you’ve finally created something you’re proud of.
Maybe it’s a brand new course. Or perhaps it’s three tiers of coaching services!
You’re ready to unleash it onto the world, but there’s just one more thing left…
You need to put a price tag on it.
But the thing is, you don’t know the first thing about pricing your offerings.
What is this new thing actually worth? What are other people charging? Should you price yours higher or lower?
Well, there’s no need to panic. I’m going to share advice for pricing your offerings in a way that feels good and helps you earn sales.
8 Tips for Pricing Your Offerings
What are my secrets for pricing your offerings online? How can you make sure you’re choosing a price that’s aligned with you and will still be in the price range of your customers? Here’s what you need to know…
1. Determine Your Business Goals
No matter what you’re working on in your business, it helps to know what your goals are. You always want to work with the end result in mind. And pricing your offerings is no exception. But how do your goals factor into the price tag of your product or service?
Let’s say for example that you have a coaching service you’d like to fill up. The first thing you want to determine is how much money you’d like to make per month. Then, figure out how many clients you can actually take on without being overloaded. You want to make sure you’re calm, cool, and collected and can handle all of your clients with ease. So, how many can you honestly take on?
The next step is to do a little math to decide how much those clients would need to pay you in order to get to your desired income level. That’s what you need to be charging per month. If your current rates are lower, then you’d have to take on more clients to reach your monthly income goal. That means it’s time to raise your rates.
(Side note: If you’re just starting out, it’s worth offering your services for free or at a discounted rate to gain experience. This will give you the confidence you need to move forward, plus get you testimonials you can use.)
2. See What Your Competitors Are Charging
I don’t want you to get too obsessed with everything your competitors do. After all, what works for them might not be the right move for your business. However, it’s still smart to stay up-to-date on their rates so you can price competitively. This doesn’t mean you want to be the lowest priced person in your industry though. That can give people the impression that you’re not experienced enough.
3. Analyze Your Target Audience
Another key aspect in pricing your offerings is to consider your audience. Who are you trying to reach? What’s their price range going to be? Answering these questions will give you good insight into what your target audience can actually afford. If your rates are way too expensive, you won’t get sales and you’ll wonder what’s going wrong.
For instance, if your target audience is college students… There’s a good chance they don’t have a lot of extra cash lying around. They’re paying for student loans, textbooks, and so many other things. And they might not be making that much money either, if they even have a paying job. Be smart about what your audience is able to comfortably pay for, but don’t devalue your work either.
A great piece of advice for you is to spend some time doing market research. Find your target audience online and ask if you can hop on a call with them. You can offer your services for free in exchange for their time. This is your opportunity to learn more about them. You’ll discover what they’re searching for and what their budget is like.
4. Use Tiered Pricing for Services
By using tiered pricing, you’ll be able to see what your audience is willing to spend money on. Let’s say you have three different packages people can purchase… The one that’s getting the most sales is an indication of the services people are willing to pay for and the total they’ll spend on them. Depending on your business, you may want to consider doing an “up-sell” when someone buys from you by offering additional services that can include.
It’s another way to see what people are interested in. Plus, it’ll help you make some extra cash from people who’d like to pick and choose what they get when they book you for a service.
5. Get Feedback from Business Besties
One reason it’s so important to have business besties in your life is because you can always turn to each other. If you have questions or need support, they’re right there for you. And that includes when it comes to pricing your offerings. If you’re not sure which price to go with, reach out to your friends for help. If you don’t have anyone you can turn to, post in a Facebook group where your target audience hangs out.
6. Never Underprice Yourself
For many people, the big numbers scare them. And it’s usually because they have some crazy hang-up about not being worth the price tag they assigned to something. But you should never underprice your products or services. Don’t fall into the trap of thinking it’ll help you land more sales by being the cheapest person out there.
You deserve to make good money for the products and services you provide to people. So, remember that and charge accordingly! If you’re still doubting yourself, read my post on how to silence your inner critic. It might stop you from constantly doubting yourself.
7. Increase Your Rates as You Go
As you gain experience and grow within your business, it’s totally acceptable to increase your rates. You don’t have to stay at the same price you started with. Increase your prices when you feel comfortable doing so and make sure they’re always a reflection of the value people will get from what they’re buying.
Do you need to inform everyone of your price increases? Nope. You can make changes whenever you want. However, if you have a past client who comes back to you after you’ve raised your rates, stand firm and let them know that your pricing isn’t the same as it used to be. If you have clients on retainer, then it’s probably a good idea to grandfather them into their original pricing.
8. Believe You’re Worth It
And finally, you need to believe you’re worth whatever price you’re charging. If you put a high price tag on your coaching services, but tell yourself that no one is going to pay that much for you… What do you think will happen? No one is is going to pay that much for you! Whatever you believe is the energy you put out into the Universe. So, you need to believe that you’re worth what you’re charging and other people will too.