How to change your prices to your worth

19 Feb 2015

We all know him.

The friend that keeps doing favors. Making a video for a friends wedding. Sewing dresses for daughters that aren’t hers. Giving advice on your administration.

And all of us think “She is taken advantage of.” “He should know better.” “Why doesn’t she ask for money?”

But when it comes to us, it is a lot harder to see.

When is it time to start charging and when should you ‘practice’ for a bit longer. When are your prices still right and when do they need to be raised (a lot)?

It is always a difficult question.

What to consider when changing your pricing

  1. Your experience is going up
    All of us start of with charging (next to) nothing when starting up. We need to get experience, practice our craft, before we feel comfortable to charge more. But if you have been on the job for quite a while but haven’t started charging or raised your prices something is wrong. Those training wheels came off, you just didn’t notice it. Take notice and start charging your worth.
  2. Your expenses are going up
    You are in business for a while and costs are rising. Electrical companies, software companies, most of them raise their prices once a year. If you don’t raise them as well your profit might vanish in a few years. So if costs are rising, please consider raising your pricing too.
  3. People buy value
    When charging your worth that doesn’t always mean you need to charge by the hour. People buy value and want to know what a certain price will get them. Therefore it is always a great idea to make packages out of your services and price them according to value. If the value of something is really high, don’t be afraid to price accordingly!
  4. Features are going up
    When you started out people were getting this and that for the price of x euros. But now people are getting loads more service and features and you are still charging the same amount of money. Time to raise your prices!

Maybe you read this and thought “Yes, I do need to raise my prices!”. So how do you change your prices fairly and make your current clients happy with the change?

Charge your worth

  1. Create your own prices
    When needing to create prices for services we are all inclined to check out the competition and to see if we agree with those prices. Don’t. Start with your own calculations. What do you need per month for your business costs? What do you need for yourself? Does the services have special costs? How many hours does it take you? These calculations make it a lot easier to stand behind the prices you ask.
  2. Make sure the client knows what is getting
    If you charge for packages it is important to know what is in each and every package. The client wants to know really clear what he is getting for that kind of money and, if you have different packages, what some extra cash would get him.
  3. Make the client see the benefits
    Sure, you are more expensive than others out there. If you are not, then you are most definitely undercharging since there is always someone cheaper. So the client may want to know why she should go for you and not for the cheapest person out there. Without bashing your competition let them know your worth. What is the client getting? Why is this so important? If you are an photographer for instance, making cute family photos, make sure you talk about the experience just as much as the end-result. “You will have a relaxed, unrushed, 2-hour photography session. No stress, just family fun. You can play with the kids while I make beautiful pictures. No hurry, no waiting in lines, no stess to decide on the one picture that is just right. I will retouch every image and deliver them to you.”

Have you ever changed your pricing? Did it go your way? Or do you feel like you are underpricing right now? Let me know below.

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