“How much do you charge?”
This question alone can determine whether you win or lose a client. At this point, the devil will be whispering, “Just say ₦5000 so you don't lose the customer.” 😂
I've been getting messages from people asking how to price their services without undercharging or overcharging.
Here's what I tell them.
“How much do you charge?”
For some service providers, this is one of the hardest questions to answer.
You're afraid that if you charge too much, the client will walk away. But if you charge too little, you may end up doing so much work for so little money.
So, how do you find the right balance?
Here are four things to consider.
1. Know the value you bring.
Don't set your price based on how big a client's brand is or how wealthy they look.
Understand the value of your work, the problem you're solving, and the results you're helping the client achieve.
Your price should reflect the service you provide, not just your fear of losing a customer.
2. Calculate your costs.
Consider the tools, resources, time, and effort required to deliver the service.
If you're spending money on software, internet access, transportation, or other business expenses, factor those costs into your pricing.
Your price should cover your costs and leave room for profit.
3. Research the market rate.
Find out what others offering similar services charge. This gives you a useful guide when setting your own price.
However, don't copy their prices blindly. Your experience, quality of work, delivery process, and the value you offer also matter.
Two people can offer the same service but have different pricing structures for good reasons.
4. Know your price and stick to it.
Don't change your price simply because a client looks important or makes you feel your service is too expensive.
If you decide to give someone a discount, make it clear that it's a discount, not your regular price.
For example, if your normal rate is ₦50,000 and you agree to charge a client ₦40,000, explain that you're offering a ₦10,000 discount.
That way, when they return or refer someone else, they don't give the person a discount on your behalf. 😂
You can be flexible with your pricing without making your services seem worthless.
Remember, not every client will be able to afford your rates and that's okay. You can negotiate the scope of work to fit their budget instead of automatically reducing your price for the same amount of work.
Pricing isn't just about getting clients. It's about building a business that can grow, remain profitable, and consistently deliver quality work.
