How to Price Your Services
How to price your services is a question that has been asked since the dawn of the service industry. And the going advice is “look at what other people are doing and then charge the same or a little less or a little more.” Most often people charge a little less. Which is the wrong thing to do because it’s a race to the bottom. Who can charge the least amount someone will always win. But, you’ll likely be the one who loses. And then, because of CV19 every fitness, Pilates, and Yoga instructor had to go virtual. And thus the imposter syndrome pricing began. Enter discounts or free sessions virtually and burnout. So, what should you charge for your services that were in-person and are now virtual?
The short answer is the same.
The long answer, you are not defined by the equipment that surrounds you. Your worth is not determined by how many Rerformers you have access to or which brand equipment you have. Your value comes from your knowledge and what you know doesn’t change based on your surroundings.
You’re a Business! Not a Charity!
How much do you want to gross a year?
How many weeks a year will you work?
How many days a week will you teach?
How many hours in a day will you teach?
Take your gross annual desired income and divide it by the number of weeks you will work and divide that by the number of days in a week and the number of hours in a day. The answer is the lowest amount you can make in a teachable hour.
If you’re a studio owner how much do you want the studio to gross in a year? Divide that by how many weeks the studio is open and then the number of days it’s open and then the number of hours its open. The answer is the lowest amount the studio can make in an hour it’s open.
How much should you charge for virtual sessions? The same!
If your clients balk you be honest. For most of us, our bills didn’t change just because we are virtual. I still have to pay studio rent, utilities, internet etc. Even if in the future I get rid of my studio and stay 100% virtual I still have my continuing education, and bills to run my business from home.
You are a business. Not a charity!
It’s ok to make a profit from helping people feel better.
Do you need that repeated?
If I sound like I am on the pulpit I kind of feel like I am today. I just finished leading our webinar for our AGENCY MINI program which leads people to our AGENCY program that is an ongoing coaching group. And, this question kept coming up. How much should I charge? Even after we did the whole formula. I believe businesses can thrive during this time. I believe people are spending money. You don’t have to discount your already priced too low services. You need to find your people who will pay what you’re worth and value what you offer.
So, what is your lowest hourly rate?
Is that something you’re charging now?
Is it higher than what you’re charging now?
Do you need support for this?
You can check out my course on “how to raise your rates” and “talking to your ideal client.” And, if you want more ongoing support then check out AGENCY. It’s hard to do this business thing alone. You need a community that reminds you when you’re down how much you’re worth.