Life is all about making choices and growing. The same holds true when you’re pricing your service. Use the articles below to assist you as you make informed decisions about price structure.
Before you read the articles, consider these observations:
a. I have never worked with a business owner who charged the right fees for their ideal clients. Early on, I made this mistake as well. Undercharging demeans the value you provide an makes prospects wonder what’s wrong that you’re charging such a low fee. When your prices are “just right” for you, you don’t give discounts.b. Most often, things like the time it takes to travel to and from a client’s site, the costs associated with travel, and time spent on the phone during the year, are not pre-figured into the art of pricing but should be.c. To post your fees on your website or not is your choice. There are pros and cons to doing so.d. Your best clients, i.e. your ideal clients or “AAA” clients, should NOT be paying for you to serve your “B” clients. If that’s how your business is being run now, you’re not acting as a fiduciary to your AAA clients. That’s NOT a way
to run a business. You will spend almost double the time hand holding and teaching, your “B” or less than ideal clients.e. Providing “virtual” services, i.e., services via phone, Skype, Zoom etc., are not priced lower than when you provide the same services face-to-face.f. Whatever industry you are in, don’t work in a vacuum. Yes, look at the way other people in your industry price their services, but don’t be afraid to look outside your industry for pricing. Annie Jennings is a PR Specialist and colleague. At a time when most PR people were being paid on a retainer basis, she created “pay for performance publicity.” Now, you’ll find many other PR people working that way, too.g. Whatever industry you are in, don’t work in a vacuum. Yes, look at the way other people in your industry price their services, but don’t be afraid to look outside your industry for pricing. Annie Jennings is a PR Specialist and colleague. At a time when most PR people were being paid on a retainer basis, she created “pay for performance publicity.” Now, you’ll find many other PR people working that way, too.h. While pricing, leave your emotions on the other side of the door.. You’ll probably have to keep pushing them to the curb. You ARE worth the money you envision you’ll earn.Below are 7 articles I like on pricing, offered from a variety of industries that could help advisors price their services “just right” for the ideal clients they are looking to serve.Related:
5 Costly Mistakes Financial Advisors Can’t Afford to Make in 2019 There is an art and science to pricing, and our consciences come into place.
1. 5 Concrete Pricing Strategies by Maria Marsala 2. The Food Club – Guidance Notes For Pricing A Food Product Although an article for pricing a product, the steps they take to price their product “just right” are similar to all the things that advisors, web designers, and other service business owners should consider.
3. How To Profitably Price Fee-For-Service Financial PlanningOnce, pricing your services was done for you, basically with you getting a commission. Today, with more independent advisors and planners choosing their own fees,
advisors are realizing that pricing is both an art and a science.
4. How Much Should Web Design CostAs in most other industries, there are
hidden costs and costs you don’t thinkabout that go into running a viable business.
5. Pricing Your ServicesPricing is one of the most important decisions you need to make to determine whether you turn a profit or not.
This article also looks at the various components of pricing 6. Growing Your Revenue: Is the Price Right?This and other pricing articles by the Meyers Group
are worth reading. 7. A Step by Step Guide to Calculating What You Must — or CAN Charge This is the article that really got me thinking about the art and science of pricing my services, so much so that I created a program and exercises to teach my clients how to price their services “just right.”
BONUSConsider that pricing, as well as niching, is a basic
component of marketing. For my clients, I have a Pricing Your Services Just Right program with exercises, reading, samples, etc. And
this is the book I recommend they all readon pricing to get a thorough education on how services and products are priced, before they price their own.
