Tips from Cindy Ratzlaff
- What is the transformation I am offering to clients, customers, buyers?
- What would I personally be willing to pay for that transformation?
- How many years of my business experience, training and successful client work went into being able to offer this transformation?
- What is the cost to create and deliver that transformation to a client through this product or service? (creation, packaging, shipping or other technical factors in creation)
- Is there a already a market for what I am about to offer or do I need to consider the cost of educating my current customer about the need for this product?
- Will I need to acquire new customers or will my current client base be my primary desired end user?
- How many units of this product must I sell in order for me to break even and/or earn a profit? (units can be hours of your time for coaches)
- Is there competition for this product or service? If yes, what do they charge? Am I willing and able to compete for customers at or below that fee?
Once I have the answer to these questions, I decide on a fee and move on to the marketing phase of my launch.
Many entrepreneurs struggle with charging what they are worth for their own advice, knowledge and experience. The whole question of worth is wrapped up in feelings of fear, doubt, lack, and even empathy for potential clients. These feelings make it is likely they’ll struggle when setting or raising their prices. Second guessing the worth of a service or the ability of your potential customer base to pay your fee can leave a service provider doubting themselves and that doubt can be communicated to clients and potential clients, leaving them feeling unsure, confused and wondering if they’ve made a good investment.
Give your clients the gift of your confidence, clarity and integrity by setting your fees in advance of your discussions with them. Are you charging what you are worth and feeling good about it?