How to price your services (without undercharging)

Pricing is the thing people ask about most at our catch-ups. Usually with a slightly pained face.

Most of us start too low. We look at what others charge, knock a bit off because we're new, and hope for the best. Then we're busy, tired and somehow still skint. Sound familiar?

Here's a better way.

Start with what you need, not what you think people will pay

Before you look at anyone else's prices, work out your own numbers.

1. What do you want to take home each month? Be honest. Include your bills, your savings and a bit of life.
2. What does the business cost to run? Software, phone, insurance, materials, travel, training.
3. Add tax. Roughly 25% on top is a sensible starting point.
4. How many hours can you actually bill? Not the hours you work. The hours someone pays for. Admin, marketing and emails don't count.

Divide what you need by those billable hours and you've got your minimum hourly rate. Not your ideal rate. Your floor.

Most people are surprised by how much higher it is than they expected. That's normal. (Members, the pricing worksheet in Resources does the maths for you.)

Then look at the market

Now look at what others charge. Not to copy them, but to see where you sit. If your minimum is way above everyone else, you might need to rethink your costs or your hours. If it's below, you've got room to go up.

Price the result, not the hours

Clients don't really buy your time. They buy what changes for them. A website that brings in enquiries. A wedding cake that makes them cry (the good kind). A tidy set of accounts and a calm January.

Packages help here. Instead of "£30 an hour", try "Brand starter package: £450". It's clearer for the client, and you get rewarded for being quick at what you do.

Saying your price out loud

This is the hard bit. A few things that help:

• Say it and stop. Don't follow it with "but I can do it cheaper if...". Just pause.
• Put it in writing. A simple quote email takes the pressure off. (There are templates in the members' area.)
• Expect some no's. If everyone says yes, you're probably too cheap.
• Review every six months. Put it in your diary. Prices should rise as your skills do.

It's OK to charge properly

Charging fairly isn't greedy. It's how you keep doing the work you love without burning out. And the clients who value you will happily pay for it.

If you'd like to talk it through, pricing comes up at nearly every catch-up. Bring your numbers and a coffee, and we'll help you sanity check them. 💚