The Price is Right
One of the hardest parts of freelancing or running your own company is determining pricing. We totally get that! How do you decide how much your services are worth? We’ll tell you a little secret—people tend to underprice themselves!
There are so many ways to go about setting your prices. You can compare yourself to others in the industry to make sure that the going rate is reasonable. You can compare your hourly rate to what you made in previous jobs. Here’s what we like to do: use a formula to reverse engineer your pricing to match your own financial goals! PS—we believe setting goals is SO important for growing your business!
Instead of deciding how much value your work has, start from the end goal. How much do you want to make in a year? For many, $100,000 is a good starting point. 6 figures is a common goal! So let’s start there. If you want to make $100k in one year, you need to make $8,333 per month, or roughly $2,000 a week.
Next, ask yourself how many clients you can serve. Of course, this is very industry-dependent! Maybe you have the type of business that serves one client in a month. Maybe you manage multiple clients per week or even per day. Think about how many clients you are currently serving, but don’t be afraid to aim for more! Once you know exactly why you want to grow your client base, it will be easier to set and reach that goal.
If you bill your clients hourly, and know that you will have a full work week every week, you can start at $50/hour. But don’t be afraid to go higher! You are a professional at your job. You have put in years of training and gathering the right tools to be able to serve your clients efficiently and with love.
If you bill at a flat rate, measure out how many clients you need to hit your goals, and use that number to determine your prices.
Even if you are not a math doll, the figures are relatively simple. It’s all about realizing your goals, and adjusting what you do to reach them! But hear us on this: grace is one of the most important parts of running a business. Give yourself grace when you don’t rack up a long enough client roster. Give yourself grace when you just need to take a break. In the end, serving your clients faithfully and creating work that you stand behind is what matters.
Don’t forget: we’re always here to be your Business BFF!
The PR Dolls