Considerations for Pricing Products and Services

calculator

I have been struggling with what to charge for my writing and blogging consulting services for The Write Design Company for months now.  I have been reading blogs, asking more experienced business owners and just praying that the rates to charge people will suddenly appear.

No such luck.  That is a decision I must make on my own.

At one point, I wanted to price my services for people in my community. While it’s great to have a good heart, that’s not going to help with building a business initially.  My goal is to be on the right side of the Cash Flow Quadrant where my money makes money, not on the left where I have to work to make money.

Cashflow Quadrant - Robert Kiyosaki

I had two people whom I highly regard ask me within a two day period, “How much do you want to get paid?” I told them.  And they both pretty much said, “Well, that’s how much you should charge.”  Charge for you, not other people.

As I write my business plan, I still have doubts on the prices but I quickly get over them as I consider the amount of time, my level of knowledge and the value I contribute to projects.  Another thing that helps greatly is knowing that there is a group of organizations that really need my services and are willing to pay my rates.  I just have to find them.  Another rewarding challenge.

I just wanted to share my story because I know that there other people struggling with the same issue.  Allow me to share with you what Wade Kwon, Founder of Birmingham Blogging Academy, advised about pricing.

Chris Brogan has a nice post on pricing your services: http://bit.ly/bZmotx

A common rule is full price or pro bono, but no discounts.

Think carefully about the value you add to people’s businesses. If people want to make an investment in your services, they will reap those benefits for a long time. That has lasting value. Can you communicate that to a potential client?

Be very careful about undervaluing your services. Once you do, it’s hard to reverse the damage.

And remember what I said about market research: Do as much as you can, to determine if there’s actually a need and what those services are worth.

Do you care to share your product and service pricing challenges?  What were they and how did you overcome them?

Also, check out Cashflow Quadrant by Robert Kiyosaki to learn the difference between a self-employed individual and a business owner.  I promise you will have a different mindset about being on the right side of the quadrant.

Amazon is an affiliate sponsor.

2 thoughts on “Considerations for Pricing Products and Services

  1. Donna L. Johnson

    I’m inclined to believe women struggle more with pricing vs. men. I’m reading Secrets of 6-Figure Women right now and it talks about this subject alot. One thing I’ve learned is that when you set your price – that’s your price – period. Don’t negotiate on your value. Thanks for sharing this with us.

  2. BillionDollarBlogger

    Donna, I would have to agree that pricing is a struggle for women especially if you are first generation business owner. Thank you for the book recommendation; I’m going to check it out. And, yet, negotiation should not be an option.

Comments are closed.