How to Start Charging More for Your Services
CAREER & BUSINESS
Photo by Microsoft 365 on Unsplash
Itcan be very hard to start charging clients more money. What if they say no? What if they won’t hire you anymore? What if they stop using your services altogether?
Those are all really good and valid questions. But, what if when you started charging clients more, it had the opposite effect of them saying no? Or quitting?
Here are tips you can use to help you start charging more for your services.
Know your strengths
You need to believe that what you offer is of value, and that the price you charge for it is higher than competitors because you are worth it.
Know your weaknesses, and mitigate them. If your business isn’t 100% where you want it to be yet, know exactly what’s lacking. Then make a plan to remedy each deficiency. For example, if you don’t have a lot of great photos of yourself or your work, hire a photographer or find someone who can take quality photos for free (like a friend with an interest in photography).
Believe in the value of what you offer clients – because they do! Make sure that everything about the way you present yourself shows this belief: website design, social media presence, email communication style and quality of work or product being sold.
Understand the conversations that are happening around you
There are a lot of conversations happening around you.
The first conversation is about pricing. This is the one that most people think about when they think about raising prices, but it’s not the only one.
The second is about your competitors – the ones who charge more than you do and the ones who charge less.
The third conversation is about your industry.
The fourth conversation is all the conversations you’re having with people who want to change the world: they want to be a part of something bigger, and in order to do that, they have to pay more for it.
The fifth conversation is all of the conversations you’re having with clients – the ones who are paying you less than they should be and the ones who are paying you more than they should be – about what it costs to run their businesses and how much money they need to make in order for them to keep doing what they do best.
And finally, there’s all those conversations where someone comes up with an idea for how we can give back or help others in need, and then we talk about how we can get paid for our work so that we can keep doing what we love while also giving back.
Know where your competitors are and what they’re doing relative to you
When you know where your competitors are at, what they’re doing, and who their audience is, it’s easier to see where you fit in. Understanding their strengths and weaknesses can help you avoid mistakes that have been made by others. If you’re going to charge higher prices, you need to know how much value your offering has. This is where knowing your competitors’ pricing comes into play.
If there’s a competitor with a similar offering to yours but they charge less than you do, this could be an issue for clients considering hiring both of you.Clients might not understand the differences between your offerings and will likely end up choosing the cheaper option (even if it’s not as good).
Make sure your website is capturing the right people, at the right level of engagement, and that it’s positioning you appropriately.
Your website is your first impression. A prospect will Google you to decide if they should call, and the number one determining factor in whether they do or not is the quality of your site. They’re trying to decide if it’s worth their time to talk to you at all, so your website needs to look both professional and authoritative.
The single most important thing your website can do is attract the right people with quality content that engages them and speaks directly to their pain points and challenges. In a way, you want it to “pre-sell” them on you and your firm by providing an accurate picture of what it would be like working with you, as well as demonstrating the value that can be achieved through the work that you do.
Secondly, make sure your site is easy for visitors to navigate through and contains clear descriptions of what problems you solve for clients (and how). If possible, also include testimonials from satisfied customers in order to strengthen your credibility.
Recognise the true value of your expertise and make sure your price reflects it
While the suggestion that you should charge more is a good one, it’s important to note the caveats of this advice:
First, it could be easy to get carried away and forget that what you’re selling isn’t actually free (unless you’re giving it away for free), even if your prices reflect a significant amount of value.
For example, some freelancers feel pressured to work for as little as possible with limited success, so they set their prices too low. Don’t let this happen to you! Remember that your fees should reflect the true worth of your skills and experiences.
If a potential client is paying far more than they’d pay in another industry or situation, recheck your pricing and ensure that it reflects the value of what you provide.
And don’t forget about your time! Even setting aside the obvious value of having some freedom from other obligations, there are benefits to charging for consulting hours as well as time spent doing work-related research or support.
You obviously have a lot more knowledge than other freelancers can ever hope to acquire on their own and can give much better guidance than someone who is just starting out; using these talents will help ensure that your client gets high quality results (and thus more value) with less effort on their part.
Be confident when explaining your pricing strategy and the value you provide.
It’s okay to be proud of the work you do! So, when you explain your pricing strategy and the value you provide, be confident in what you say.
We all have strengths that our clients can benefit from. Instead of worrying about your weaknesses, show off your strengths. For example, if you can make someone laugh or relate to them in a humorous way, use it. If they see how you can make their lives easier, they’ll pay more. Show them why they should work with you and not just any writer who will charge them less money.
Final Thoughts
Ultimately, pricing your services is about finding a balance between price and value. You want to offer the latter and charge for the former.
Take the time to determine what your services are worth and make sure you are charging appropriately for them.