Knowing what to charge for their services is one of the first questions newly qualified therapists, coaches and trainers have to answer.
The subject of setting prices has come up a lot recently, so I thought I’d write this blog to dispel some of the myths around pricing and help you work out what your prices should be.
First of all, a little bit of tough love. Your mindset around your pricing is probably a reflection of your mindset around money. As I’ve written before I’m not a money mindset coach, but I’ve done a lot of work on my own money mindset (it’s on-going, like painting the Forth Bridge, it’s never done).
Try not to project how you feel about investing in yourself onto your clients. Remember that they have come to you looking for you to help them, and help them you can. You have studied, trained and no matter how newly qualified you are, you’re still the expert and they are coming to you for your expertise.
Secondly, unless you are happy with a hobby business, you should be earning at least a living wage. You need to make sure that you are charging enough across the hours that you want to work to earn the money you want.
So let’s bust those pricing myths!
Your price will be perceived in the same way by everyone.
Price is just a number. How people view value is based on so many factors that it would be difficult to know how to price for everyone. Which is why when you do your ideal client work you will have a clear idea of your client’s values and be able to apply them to your pricing.
You need to charge according to your experience.
That’s your Imposter Syndrome kicking in. How often do you go and see a specialist and ask when they qualified? As I said above, you’ve put the work in. Yes, you will gain more experience and knowledge as you go along, and may be able to raise your prices accordingly. But that doesn’t mean that you should undercharge at the start of your new career. Your clients care about themselves and the transformation you can help them make, so focus on what you can do, right now.
There is a ‘market rate’ for your services in your niche or locality.
I’m going to be a bit controversial here. There is no such thing as ‘market rate’. Take business workshops. Some people charge in the £1000’s for a workshop, some people a few hundred pounds, and some give them away for free. There will be a strategy behind the pricing. And it’s just the same for your business. Set your prices strategically. Think about what you want to earn and what your ideal client will pay.
I need to charge less than my competitors to have any chance of getting new business.
The good news is that you don’t need to do this. You don’t know who your ‘competitors’ ideal client is, you should have a USP that sets them apart and if your clients are choosing on price alone you need to do some marketing work to explain to them your VALUE.
The universe will tell me what to charge.
Erm, no. The universe has many powers, but it’s not the boss of your company, you are. And you decide your prices.
“Think about VALUE, not price”
VALUE is the key word here. Stop thinking about price / money and start thinking about value / transformation.
Remember, you’re in control of your business, it shouldn’t be controlling you. Decide how many hours you want to work, how much you want to earn and work out your rate per hour. Don’t forget that you will need to consider your expenses, your marketing budget and tax.
Here’s a great tip I learnt from one of my favourite business coaches….
If a prospective client says that they can’t afford your services, ask them what they can afford and then offer them that proportion of your service. Here’s how this might work in practice (number are just to make the maths easy for me!)
You’re and NT and charge £100 an hour. Your client says they want to spend £50 – so why not offer them a half an hour chat and some basic nutritional advice. They get to feel comfortable with their investment, and you get to show off your expertise. Who knows, they might come back for the full service!
If you need help with setting your pricing and would like to dig a bit deeper into the points I’ve made in this article book a Power Hour with me and we can get you sorted.