The power in entrepreneurship is that we get to determine our own pricing, but then we’re faced with our potential clients being the ones who determine if they’re willing to pay that price. In today’s episode, we’re discussing pricing strategies for creatives so that you can determine how to set or raise your prices!
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When Pricing Your Services
I would probably bet that you’ve struggled with your pricing as a creative entrepreneur at one point or another (and likely any time you’ve ever looked at your pricing). You may be forced to increase your income based on the economy, changes in your lifestyle, or how you’re building your team.
Before we dive too far into what to consider in pricing your services, it’s important to remember that someone’s number doesn’t necessarily have to be your number. Your pricing and what is exciting for you in your journey with where you are right now does not need to be reflective of someone else.
Let’s review a few things you should be doing as a creative entrepreneur trying to raise or determine their pricing.
1. Always be price testing and increasing as you become booked.
This concept goes back to supply and demand. If you find that your capacity is completely capped, that is a great indicator that it is time to raise your prices. You can also test your pricing to see what people are willing to spend—Amazon does this all the time. The prices of items change on a near-daily basis. They’re testing to see what price compels you to buy, but also the prices change based on capacity. When they’re down to the final few of something, that can affect the price.
2. Price should support your life by looking at capacity but also pass the gut check.
Consider your lifestyle and how you need to support it, then reviewing your capacity again and how much you can work.
Additionally, it should pass a gut check. For example, when you’re looking at the next year and you want to make 120,000 in your business, but you can only take on 30 clients max. Now $4,000 at 30 clients a year does give you $120,000, but let’s gut check it. If you’re a luxury service provider, $4,000 may be undercutting yourself. Could you instead do 20 clients at $6,000 per year?
Look at your business, lifestyle, and sustainability to really determine how much you need to charge in order to maintain a good work-life balance. As a creative, I also like for my pricing to stretch me a little bit out of my comfort zone.
3. Constantly be watching your hourly rate.
As a business owner, it is so important to track your time—you need to be watching your hourly rate to make sure that you’re not undercutting yourself in your pricing. Consider the business expenses and the taxes you’re paying out—when you spread your profit over the hours you’re working, does it align with your hourly rate?
4. Your pricing is an element of your branding.
If you’re using boutique or luxury business owner or you’re using any language that indicates a high-end service, and your pricing doesn’t reflect it, that creates a discrepancy in your buyer’s mind.
On the other hand, if you have an introductory offer, you may intentionally price it lower as a strategic business move to support your brand. Think about your branding and your pricing as an experience for your potential clients.
Austin L. Church wrote Free Money, which has really been impactful around freelance pricing that is a great read if you need to hone in on your role in pricing yourself as a creative.
3 Things to Check and Do Before Raising Your Rates
- Perform an experience audit to sprucing up the experience.
- Take time to do an authority audit to ensure you’re adding layers of authority through press & testimonials.
- Work on building your visibility—this is a numbers game and you need to get in front of NEW people consistently.
Once you have your brand experience, brand authority, and brand visibility, you’ll have most of the foundational tools to gain the potential clients to pay your prices.
If you’re enjoying the content we’re creating on the podcast and want to connect with others who are called to both, make sure you come join us in the PhotoBoss Facebook Group!
Mentioned in this Episode:
Free Money by Austin L. Church
Episode 113: Top 3 Ways to Improve Your Google Business Profile & SEO
Affiliate Marketing Jumpstart Guide
Connect with Joy:
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Youtube: youtube.com/channel/UC-Ou6jRKxcjMrVMxWxLO_fQ
Facebook: facebook.com/joymichellephotography
Coach with Joy: joymichelle.co/coaching
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