Warning: You Are Losing Money By Not Charging What You're Worth
There is one question I am asked all the time. What do I charge? When you are in business, how you will make money becomes the main focus. After all, you want to make sure you are hitting your revenue goals. You want to get paid fairly for your time. And you definitely don’t want to lose money.
There are many factors that can play into pricing. Do you have experience in your skill? How long does it take you to complete a task? What kind of task is it? It can quickly get overwhelming!
Let me help you! There are really only two parts to determining your rates and pricing.
Know your worth
First, you have to believe you are worth what you are charging. In business, you determine your worth. Not the client. Not a boss, like in the 9-5 world. You!
One of the biggest obstacles to making the money you want is having self-doubt. Doubting your worth will hold you back, no matter what your rates are. So, I want you to look inside yourself and see if you are doubting your worth.
If you are, I have a few suggestions to help.
Find a mentor! Whether this is a coach or a group, this can help you have a safe place to vent. This can also give you the boost to your confidence to have others encourage you. If you need help finding a mentor, join my Freedom Academy Training membership group. I can help set you up with an experienced business owner to guide you.
Set attainable goals. Don’t say, “I will learn how to do social media management”. Instead, break down into bite sized goals. You will find a course on social media. You will finish that course. You will take on a client as a case study to prove your skills. As you reach each goal, you will gain confidence and momentum.
Stop trying to make everyone else happy. This includes current or potential clients. You want to do excellent work. You want them to be satisfied with your service. But you don’t want to allow them control of your life. When you base your purpose for doing business on making them happy, you will find you fall short every time. Focus on doing good work and leave it at that.
Now that I have dealt with your self-doubt, let’s move on to actually pricing your worth
I know you are an expert. You have spent time mastering your skill. Now it is time to price it. You want to price yourself fairly. But you also want to make sure you are getting value out of your skills. There are different pricing setups you can choose.
I see a lot of new VAs and Freelancers pricing by the hour when they first start out. This seems like a smart way to start. After all, you may not know how long something will take you. You want to be fair to the client. And you want them to agree to work with you.
So, you low ball your pricing and price by the hour. If I can make one suggestion, it is not to do this. Research what the going pricing rates are for your skill. For example, are you a copywriter? Google “copywriting pricing” and look for actual pricing from other copywriters. Do this for your industry. Don’t just price to get a yes. A client who is going to value you will pay what you are worth.
This is the honey pot when it comes to your VA or Freelance business. Why? As you get better at your skill, you will become more efficient. You will become faster. If you are still charging by the hour, you will continually lose money as you become better at what you do.
Instead, pricing per project means you get paid what you are worth. I strongly encourage you to price your projects. It will also allow you to grow your business faster. You will get paid no matter how fast you complete your work.
Most freelancers price by estimating the amount of time a project should take. They then factor in extra time for solving problems that may happen. Finally, they multiply that by their preferred rate. You can use the same idea to price your own work.
The final idea on pricing your work is to offer retainers. You will offer set numbers of hours and clients will prepay for them. This works well if clients want different types of work done. They can use the time on any task. And you get paid up front. Instead of charging hourly, offering retainers would be a better way to earn money.
I would caution that you make sure your contract limits how long the paid time lasts. What I mean is, make sure that the hours expire after 60 or 90 days. That way the client will want to use their time and keep you working.
I hope this helped you get an idea on how to price your services. Whether you offer admin or technical work, pricing is key. As you continue to set your rates, you will get more comfortable in what you offer. You will gain the confidence to know that your services are worth the price.
I know it can seem confusing. Don’t be afraid to ask others for help. Find others that you can ask whether your pricing is fair. If you want a community that can help you with this, I invite you to join my Freedom Academy Training. You will find support and have plenty of opportunities to ask questions. I want to see you there!