One of the first steps in starting a business is deciding how much to charge for your services or products.
I remember about 9 years ago I was just getting started with photography and I asked a well known photographer “How do I know when I am ready to start charging.” His answer was, “If you have to ask, then you probably shouldn’t be.”
While I think his answer could’ve been nicer, I now see his point. A huge part of knowing what to charge is confidence and skill.
You might be asking, am I charging too much? Or maybe you’re thinking, I KNOW I’m not charging enough.
I used to waste a lot of valuable time wondering this very thing, because back then, I hardly charged anything and I was working like a dog!
The thing is, the more confident you get in your abilities and your services, the easier it is to know and charge your worth.
Deciding how much to charge should be a breeze. Today I want to share with you 3 steps to nailing your pricing quickly and accurately so you are 100% confident in your pricing.
Step # 1 is to KNOW YOUR NUMBERS.
Like I said, you cannot guess! You need sit down and write out every cost that’s included in your products and services, including opportunity cost.
If you’re not familiar with OC, it basically means that your time is worth a certain amount. Wherever your time is being used for work, it is COSTING you. Things like time from other opportunities in your life and being with family or friends.
So, not only do you need to know your cost of goods, taxes, services etc. You need to know how much an hour of your time is worth.
Step #2 is to work your way up.
Let’s say your numbers are really big like mine (way to go for dreaming big!) but you’re just starting out and you’re not comfortable charging that much just yet.
The most important thing is that you’re always at least covering your costs. SO that should be your bare minimum number, then add in some OC and work your way up. I once read for every 5 jobs you do at your current price, you can raise it.
Step #3 is to practice saying your pricing.
It’s probably going to be really difficult at first to ask for what you’re worth because most of us have a really hard time talking about money.
The beauty is, like most things, the more you talk about it and practice it, the easier it becomes.
I HIGHLY recommend you do some mindset work around money if you haven’t already. I literally went from shaking like a leaf and wanting to throw up during my sales sessions, to having fun and being confident in what I delivered.
Remember, your time is money and your unique skills and products are being purchased because someone else sees the value in them. So go out there and charge your worth!