When you sell products or services, one of the first questions a prospective client asks is, “how much do you charge?”
I know a lot of small business owners and freelancers, have a set fee or charge by the hour. Which is absolutely fine, if you’re into trading you precious hours for dollars. Of course, if you are just getting started and want to build your portfolio or need some cash, taking hourly jobs makes sense.
But as your business grows, you will realize how quickly that business model won’t work.
There are only so many hours in a day that you are able to do work. Eventually, you may have to start turning clients away because you just don’t have the time.
Failing Taught Me A Valuable Lesson
Let me share with you a little story.
When I first started my online consulting business, I charged by the hour for consulting and a flat fee for project based services. I also included my fees on my website so people could see what I charged. I even offered a complimentary session to sort of help me and the prospect, determine if I could help them with their problem.
As those sessions would come to a close, the question – How Much Do You Charge for… was always the next response. I would list off my services and fees. Most of those sessions ended with, I’ll get back to you or I need to think about it more.
Needless to say, I never would hear from the majority of them again.
So, the smart thing to do was make some changes!
Work Less Hours And Make More Money
I went into my website and revamped all my service pages. The first thing I did was took down my prices. I was tired of being burnt out and working around the clock and not really getting paid what I was worth.
Instead, I decided to write down the services I offered along with the results my clients would receive. No longer charging by the hour, but by the value clients are getting. I decided I would offer a personalized experience instead of a “here’s what I got…take it or leave it” type of deal.
I chose to customize services based on what my clients need. Now, my website lists what I can do and includes a form to submit a request for a quote. They receive back from me, a value based proposal with fees.
Does this take more time? YES, but I’ve increased my closing rate and have been able to close more high paying clients while eliminating those who weren’t really that serious. I can do work I enjoy doing, work less hours and make more money because I don’t need to have any where as many clients as before.
Now, I charge based on what my work is going to do for them.
When A Potential Client Asks, “How Much Do You Charge?”…
My response is simple, “it depends on what you are looking to accomplish.” Next, I send them to my service page where they can decide what kind of help they would like and proceed from there. Or, they can schedule a quick 15 minute chat so we can see if I can assist them.
You see, when you shift your thinking from getting paid based on what you need to getting paid based on what you provide, you stop selling your hours and start selling results. People always want to know what’s in it for them. Show them the results, our outcome working with you will give them, and they will be much more inclined to pay you exactly what you ask for.
How do you respond when a prospect asks you, how much do you charge? Let me know below in the comments.
Tamyka Washington
This article is very timely for me Tamyka. I have recently been researching what the market can bare and the value of what my answering service offers to each client. I am happy to be able to say, that I am not so much struggling with “what’ I charge anymore. That ship has sailed,
I now know the value in the services my company offers. And when I account for my overhead (even though I do have a virtual office) my answering service staff, payroll and employee taxes, equipment and software…well you get the drift. I calculate all of these things, I then anticipate what my potential client may ask or expect when it comes to our services and I price accordingly.
My clients know that Customer Elevations, LLC is not your traditional answering service the experience and the way we package each service for each client specifically. Just the other day I had a follow up email about services and quoted one of my higher rates based on their needs.
I got a response by the end of the day requesting a belly to belly meeting to set up the service. As you stated above it is about the value you offer and most clients realize that they can get the same service anywhere, but it may not be “the same service” on the outcome. So they don’t mind paying for the value. Thanks again I really enjoyed reading this weeks post.
That sounds great, Shayla! I think most entrepreneurs don’t take into account their overhead when they are working on their fees. Great that you mention it. People are definitely more willing to pay for the value…and the results you can provide them! Thanks for sharing.