ep 14 Have you been wondering how to price your services? Let’s talk about money, money, money! If pricing your services has been stressing you out, don’t worry. Today, I’m sharing three simple pricing methods that will help you confidently charge for your services and make money online.

Money Mindset Matters

Before we jump into pricing methods, let’s address something important—your mindset about money. Many service-based entrepreneurs, especially those who come from faith-based backgrounds, struggle with charging for their work. You might feel like you’re supposed to give your services away for free or that asking for money makes you a bad person.

But here’s the truth: Money is simply a tool, and charging for your services is a way to honor the gifts God has placed inside of you. Think of your service as a prescription that solves someone’s problem. Just like you wouldn’t expect a pharmacy to give away medicine for free, you shouldn’t feel guilty about pricing your services. Your work has value, and it’s okay to be compensated for it!

Now, let’s break down the three pricing methods you can use to set a fair price for your services.

1. Price Matching

Price matching is when you look at what your competitors are charging and set your price based on the industry standard. This method is great if you’re just starting out and aren’t sure how to price your services.

Here’s how it works:

• Research competitors in your industry and see what they charge.
  
• Decide whether you want to match their price, charge slightly more, or slightly less.
  
• Make adjustments based on the level of value you’re offering.
  

For example, when I started my international personal shopping business, I noticed that competitors were charging between $3 to $4.50 per pound. I set my price at $4 per pound initially, and as I gained experience and provided more value, I increased my price to $5 per pound.

One thing to keep in mind: If you go lower than your competitors, you risk underpricing yourself and making your business unsustainable. Instead, consider either matching the industry standard or going slightly higher if you offer additional value.

2. Cost Matching

Cost matching is when you calculate how much it costs to provide your service and then add a percentage to ensure you make a profit. This method is especially useful for service businesses that have product-related costs.

Here’s how to do it:

• Calculate all costs involved in delivering your service. This includes materials, labor, and any overhead expenses.
  
• Decide on a profit margin (e.g., 20%, 50%, or even doubling your costs).
  
• Use this formula: Total Cost + Desired Profit = Service Price
  

For example, if you’re a baker and it costs you $20 to make a cake, you might decide to charge $50 to cover your costs and make a profit.

One thing to keep in mind: While cost matching ensures you don’t lose money, it’s also important to check industry prices. If your price is too high compared to competitors, you may need to adjust accordingly.

3. Create Your Own Pricing Standard

This method is for those who want to set their own unique pricing without relying on industry standards. With this approach, you decide what your services are worth based on the value you provide.

Ways to set a new pricing standard:

• Charge based on expertise: If you bring a unique level of experience or specialization, charge a premium price.
  
• Use your corporate salary as a guide: Take what you earned at your last job, break it down into an hourly rate, and set your prices accordingly.
  
• Offer high-end, exclusive services: If you’re positioning yourself as a luxury service provider, you can charge premium prices.
  

For example, if you used to make $100,000 a year at your job, break it down to an hourly rate (divide by 52 weeks, then by 40 hours per week). That comes to about $48 per hour. You can then use this as a starting point for pricing your services.

This method works best if you have a strong brand presence and a clear value proposition that justifies higher prices.

Recap: Choose the Right Pricing Method for You

Here’s a quick recap of the three pricing methods:

1. Price Matching – Base your price on what competitors are charging.
   
2. Cost Matching – Calculate your costs and add a percentage for profit.
   
3. Create a New Pricing Standard – Set your price based on the unique value you provide.
   

Final Thoughts: Don’t Be Afraid to Charge!

No matter which pricing method you choose, remember that your service is valuable, and you deserve to be compensated fairly. Pricing your services properly allows you to build a sustainable business, serve more people, and make a greater impact.

So, go ahead and price your services with confidence! Your business deserves to be profitable, and you are worthy of success.

If you found this helpful, I’d love to hear from you! Leave a comment and share which pricing method you’re going to use for your business. Let’s grow together!