Know your worth and then add tax (if you have an HST number, that is).
Setting prices for service-based businesses can be uncomfortable, especially when you’re just starting out. In my first 6 months of business, I had my prices insanely low compared to similar businesses. I did this intentionally to build up a larger portfolio base to showcase my early work. But after 6 months, I raised my prices (and yes – I still had clients coming in!).
When you set your prices too low, potential clients might wonder “Why are their rates so much lower? Is the quality that much lower? Will I be paying more in add-ons?”
Here are some things to consider when setting your prices:
1️⃣ The competition. It’s a good idea to see what other businesses that offer your services are charging, but don’t copy their prices. They may offer slightly different services, so you should have your own prices.
2️⃣ Your rate structure. Will you be charging hourly? Per service? Per word for writing? It can even be a mix of all of them! What makes the most sense for you and your services? Price accordingly.
3️⃣ Be flexible, but be strong. I am flexible with my rates because my clientele is small businesses. I know that budgets differ depending on the business. Every business deserves to have good branding to get them started though, so I have a conversation upfront about their budget and my flexibility. But I won’t let the price get too low, I remain strong in my value in my business, too.
4️⃣ Raise your prices. When you set your prices initially, it is not etched in stone. There is nowhere saying you have to maintain the same prices for your whole business journey. I don’t recommend increasing your prices weekly, but an annual review can help you determine if you want to increase.
Do you have any tips for setting prices? Drop them below! ⬇️