I’m happy to have a guest post from a colleague this month. Bria Simpson, is Founder and CEO of Excelerated Success Coaching Company, as well as a business coach, consultant, and expert in helping small business owners.
Bria is a bestselling author whose works include The Balanced Mom and The 12 Habits of Highly Successful Entrepreneurs Training Series ™. She is a featured author in the business book, Mastering the Art of Success, along with Jack Canfield and other well known experts.
Bria shares her insights on a common problem that I suppose every coach helps their clients with, how much a service provider business should charge for their services. I have found most small businesses under charge and undervalue the results that they create. At networking meetings, I often joke when people share that they are “too busy” that it is time to raise prices. Well here are some ideas to consider to help you to charge what you are worth:
How to Charge What You Are Worth
Determining Your Value
A common struggle among my clients is how to be adequately compensated for their work. Charging too little leads to frustration and insufficient profits. Charging too much fails to attract enough clients. How do you find the sweet spot that best reflects what your services or products are worth?
Step #1) Conduct a quick evaluation of similar businesses. Compile a list of successful businesses in your field. What do they charge? How do they charge? In this step, you are gathering information about what the current market will bear. Please keep in mind that some small businesses are doing well in this economy and others are struggling. You want to collect data on those who are doing well. One way to gauge this is to only look at businesses that have been in existence for five years or more.
Step #2) Ask yourself: “How does my business stand out from the crowd? What is my “competitive advantage”? What makes me truly unique?” It may be your experience or something unique about you, your products or services. Once you reveal your “competitive advantage” and include it in your marketing materials and initial conversations with potential clients, you can command higher fees.
Step # 3) Determine your fees. Now, ask yourself “How can I add more value?” In my coaching services in addition to the live coaching I offer, I also include email access, a full list of tested resources, phone calls with me, and the creation of an Operations Manual (the systems and processes for your individual business that we create together). Sometimes we even travel out of state to meet with clients. The combination of these features are not only of high value to clients, they are also unique in the coaching world.
Some of my product-based clients have packaged products together, or added a loyalty program, to enhance value. Once you have exceeded expectations (and there is always a way), you can comfortably request to be appropriately compensated.
Step #4) Provide excellent customer service, obtain testimonials, and share them. This is an obvious yet often overlooked key to attracting clients. Potential customers want to know the results they will get from investing in your business. Hearing it from you is one thing, but they also want to hear it from fellow customers. In the eye of a consumer, “social proof” is a measure of confidence that can be trusted. Use it.
Step #5) Ask for feedback and seek ways to improve. Create a system for obtaining consistent feedback. Decide if collecting feedback makes sense on the phone, by email, or in person. Then determine when the information will be collected, who will collect the data, and when the reports will be given to you. Be sure to create a system that can and will be implemented consistently. Identify themes. What are the strengths in your business that you can build upon? What are the weaknesses you can improve? Implement what you learn and you will be able to raise your fees over time because you are consistently improving results for your clients.
The truth is- people pay for high value and excellent service. Follow these 5 steps and you will be able to confidently charge what you are worth…and get it![divider]Bria Simpson, MA, is the Founder and CEO of Excelerated Success Coaching Company and is a sought after business coach, consultant, and expert in helping small business owners enjoy more profits, more efficiency, and more freedom by teaching them how to effectively streamline and systematize their businesses.