Why you should have a clear pricing structure

Putting together your pricing structure is probably the hardest part of working for yourself. Especially at the start. Here you are, a complete newbie, expected to put together pricing that clients will actually want to pay and will also allow you to continue living indoors. It’s a nightmare. It’s also one of the most important things you can do, as it shows the value you put on your time and the work you do.

Build trust
Have you ever been shopping for something in particular, walked into a shop, found the thing you wanted, and then been unable to find a price? Frustrating isn’t it. This is exactly how your potential clients feel when they find you, love what your business does and stands for, and then can’t find one single indication of price. I certainly wouldn’t buy from someone who doesn’t want me to know how much they charge until the last second, would you? To me, at least, it kinda seems like they feel they have something to hide – probably because they think they’re charging too much – so be proud of your pricing and show you’re trustworthy by having it out there for all to see.

Everyone has a limit
There are loads of coaches out there telling you, “It doesn’t matter if people are put off by your price, it simply shows they’re not the right one for you” and “If potential customers really want your service/thing they’ll find the money”. This is true, to a point. Let’s be honest, everyone has an upper limit of what they’re willing to pay for a certain thing. I, apparently, will happily spend £30 on a coat for my dog to use a few times a year, but am less willing to pay £30 for a mug that I’ll use every day (a lesson I recently learned about myself). I bought the mug and the coat and regret nothing, but the mug took significantly more thought than the coat. The point is, everyone has a thing that they’re willing to pay more for and this will be different from person to person. Which is where fantastic marketing comes in, a clear pricing structure teamed with spot-on marketing helps you attract the right kind of people (i.e. ones that will actually part with their money).

Value for money
As shown through my mug/coat example, value for money means different things to different people. Your amazing product or service should represent value for money to your customers because it either A, solves a problem they can’t get around without you; B, means they no longer have to do the thing they hate doing; or C, makes them feel incredible. It could be a combination of all three. The most important thing is that they will be able to justify the cost to themselves without too much input from you. It doesn’t really matter what you’re charging, as long as it represents value to them. If they’re the right client, you’ll never have to justify your price. They’ll see the value in what you’re offering and be shaking fistfuls of cash in your direction with minimal input from you. The most important thing is that you’re able to communicate the value of what you’re selling alongside your pricing. By having a clear pricing structure you’re giving people all the tools they need to decide whether they can afford you or not.

How much
Setting prices is tricky. The best advice I can give is to look at what other people are charging, ask other business owners in your sector, and do loads of research. There are also loads of great articles out there designed to help, like this one, so take a look around. You will, inevitably, set your prices waaaaayyyy too low when you first start out. Give it a few months and reassess. How much you charge should be based on your experience, what the market rate for your thing is, how much time you spend on producing it, and by factoring in any overheads. There will always be clients who say you’re too expensive, even if you’re the cheapest person in the world for that thing. Some people just love a bargain *shrugs*, as long as the majority are happy to pay, I say go for it! It’s also good sense to reassess prices regularly, to make sure they fully reflect your experience and what you’re offering at that time

Be clear
Personally, I believe that you should have your pricing front and centre for everyone to see, otherwise it sort of looks like you’re ashamed of it. There will of course, be times when you can’t – my VA and Social Media Management services contain so many variables it would be impossible to put a price out there – but on the whole, if you’re selling a product or service with set parameters, you should probably share some kind of ballpark figure. Feel free to add a disclaimer to make it clear that prices are subject to change depending on requirements, especially if you’re offering a service. By being clear and upfront about your pricing you’re also preventing someone from wasting their (and your time) enquiring before finding out you’re way out of their price range. They’ll know whether they can afford your thing because they’ll already have a rough idea how much it costs. It’s also a great way to help those customers who have zero experience purchasing a thing like yours but have a budget in mind.

Having a clear pricing structure that’s visible to potential clients is a fantastic way of helping them decide whether you’re the one, without the need for a hard sell. If they already know roughly how much you charge and still get in touch, they’ve probably already spent the money in their head anyway. Having your prices readily available can also help attract customers who may have thought you were completely out of reach to them, your branding may look super high-end (usually code for expensive) but your prices may be more budget-friendly. They’ll be pleasantly surprised when they realise, and you’ll have a new customer.

If you’d like to have a nose at what I charge, take a look at my prices page.