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Being Happy Requires a Commitment

What is the Right Price to Charge?

IStock_000003927064XSmall In my coaching/mentoring/business advisory work I often get asked, “How much should I charge for my service/product?”

That fact is, for most industry niches there are no real standards.

Sure, you can look at the competition to see what they charge. Or you might be deluded into thinking that there is a “maximum” the industry will accept.

But the fact is you’re not selling the product or service you deliver. No one cares about that. You are selling (and pricing) the value people receive from engaging with you.

With that in mind, the better question becomes, “What is the proven return on investment your service or product delivers?"

In other words, when people engage you, what do they typically receive in use value?

After answering that question, the next most important question to ask yourself in establishing a price is “How much do you need to earn per sale to make you feel like you are being well compensated?”

This number will make you feel great about giving 110% of your best effort. And if you say, “I give 110% no matter how much I get paid,” please realize that is simply not true.

As human beings we have to feel valued to give our best effort. If we don’t, we tend to get distracted due to our dissatisfaction. And a distracted vendor is not giving 110% effort.

Based on this formula, what is the price YOU should charge?

Consider use value (historic return on investment)

Then personal value (what level of fee makes you feel well compensated for the service you deliver)

The answer to these two questions will give you the price you should charge.

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