by: Melissa Quiter
One of the most often asked questions I get from holistic professionals is, “What should I be charging?” The cloud of uncertainty around pricing plagues the best of us. When you aren’t sure what to charge, you end up guessing. And, the last thing you want to do is lose prospects from guessing too high or undervalue yourself by guessing too low.
That is why using a pricing formula can be an answer to the uncertainty. The formula I use was developed when I faced the same dilemma. Existing recommendations for pricing didn’t fit my holistic business. So, I created one that did. It has been very successful for my clients and me.
The pricing formula for invaluable holistic services is:
General Market Rate + Previous Education (credentials) + Experience/Proven Results (testimonials) + On-going Education/Training/ Customized Solutions
Together, these factors create the value around your offerings. Remember, it is the perceived value that clients buy, not the actual product or service.
Let’s break the formula down. Research the range of fees charged by your fellow practitioners with similar offerings. This gives you a framework from which to work.
Start with the lower end of the scale and consider your previous educational background. This includes all the education you have attained to support what you offer: high school and college degrees, professional designations and certifications, etc. Compare your education to your fellow professionals. Do you have extensive credentials that demonstrate a higher level of knowledge? If yes, move yourself up the scale. If no, stay where you are and move on to the next factor.
Next is experience/proven results. This is what your clients have already experienced working with you. Proven results mean less risk for potential clients. Testimonials are great proof. If you have proven results from your clients, move up the pricing scale.
The last factor is on-going education and training along with customized solutions. Staying apprised of the latest techniques and trends in your modality and industry gives you more tools with which to offer more effective solutions. The more tools you have, the more value you offer, thus higher fee you can charge. Assess your tool kit and land on your perfect price point.
One key to remember is feeling good about what you charge. If you aren’t comfortable, your clients will feel this discomfort and question your pricing. It is your responsibility to believe and explain your value to your clients.
This formula has been a great tool for me. I hope it assists in your pricing challenges!
Copyright 2005 Melissa Quiter