Hopefully you have started working on your packages as per this weeks lesson.
As promised (and as I can imagine much to your desire and possible confusion) the PRICING component of designing a package is usually the most difficult! How much is too much? How much is too little? What is it worth?
First and foremost I will say that I CAN NOT tell you the price you should charge. I can give my opinion to my mentoring clients on whether their figure is appropriate but only you can make the decision as to whether to go ahead or not.
But what I CAN do is give you some tips and things to consider when deciding your price.
- Most sales experts say that if you sell 6 or 7 + out of 10 every time you have a sales conversation, then your price is too low. If this is the case, it might be time to increase your price.
- When you price something appropriately you get energised by your work. You look forward to it and you can’t wait to help your client even more. If you are dreading your client sending you jobs or if you are no longer having fun (but generally speaking its not the task per-say) then you need to increase your price so its a fair exchange of their money for your energy.
- Think about how much time you might be saving your client. What is that time worth to them? If they can spend $500 with you per month which enables them to make an additional $10,000 of sales with their free time, DON’T be cheap and charge $100 thinking you will get more clients. Understand the true value you are bringing them.
- Understand that we’re not trying to get everyone to buy your packages, just the right kind of people. Don’t undercut yourself to get a quick sale.
- If you’re not sure on how to price a service – set a price based on a temporary trial run so you can increase it if you need to after a certain period (and you don’t shoot yourself in the foot long term).
- Nothing is set in stone – if you sell one package and realise its too cheap, increase the price for the next client.
One of the easiest tips I can give you from the beginning is work out roughly how long it will take you to implement your package and deliver the results to the client. Then work out the “theoretical hourly rate”. It’s theoretical as you are NOT charging an hourly rate, BUT if you can roughly see what you would be making using your old method vs this new one it might help you identify if you are in the right range.
For example I had a VA who wanted to charge a $99 package per week. The package would take her 2 hours to do. This means her theoretical hourly rate is around $50 per hour. Her old hourly rate before embarking on her 100KVA journey was $45 per hour. That means she only upped her hourly rate by $5….. Clearly that package was too low! At that price she is not going to be able to leverage herself, her time or scale her business.
Most importantly don’t compare yourself to anyone else. Don’t worry if competitors scoff at your price and tell you its too much. They are not your clients. Otherwise how could Gold Class movies sell tickets for 3 times the price of a normal movie ticket when patrons are WATCHING THE SAME FILM! It’s all about value and experience you bring to your client.
Let me know how you go!