Are you happy with how much your clients are paying you? If not, perhaps you have been committing one of the Seven Deadly Sins of Pricing:
1. Pricing low because you’re just starting out. Just because you’re new doesn’t mean you’re not worth as much as others in your field. You are in business because you have a unique set of skills, passions and expertise. You are offering high value to your clients right now.
2. Offering discounts to first-time clients. You want to attract clients who are not price-sensitive, who are motivated to hire you because they value your services. As much as you describe the first-time discount, your clients will experience your regular fee as an unexpected price hike.
3. Offering discounts to encourage repeat business. You may get a prospective client ask you for a discount “because I’ll send you lots of work.” Rather than offer a discount in anticipation of work, only discount your fee to clients who have a proven track record of repeat business.
4. Basing your rate on others’ rates. Solopreneurs who are charging on the higher end of the scale don’t advertise their rates; solopreneurs who are charging far too little do tend to advertise their rates. And, in any event, no one offers quite the combination of insight and expertise that you do. Charge what you are worth, not what other people think they are worth.
5. Telling clients your hourly rate. Most successful solopreneurs charge over $100/hour, and that can sound frighteningly high to prospective clients who don’t know what you can do in an hour. When a prospect asks for your hourly rate, what they really want to know is what a typical project will cost.
6. Focusing on finding retainer clients. While they sound like a nice thing, retainer clients hold you back by focusing on one aspect of what you do. They usually pay you for hours worked rather than results generated, so you are not able to price according to your value.
7. Arguing with clients about your fee. If a client isn’t willing to pay your regular fee and you are unwilling to offer a discount, walk away. Focus on identifying and then reaching out to a new set of clients who are not price-sensitive.