Pricing Your Services for Success!

One of the first things we think about when starting a business is the money. Show me the money! It is so easy to close your eyes and dream about all the things you could have with this new stream of income coming your way. I don’t know about you but beaches, beaches and more beaches are in my plans. Just as quick as those dreams it is time to snap back into reality! It’s time to figure out this money.

The first step is to get an understanding of what success looks like for you. What type of things do you require in your life to be at your best and feel your best. Everyone is totally different and only you will know what works for you. Success for me would be owning a bed and breakfast on the beach and waking up to the waves everyday while success for others could be flying private jets and living in a penthouse with a doorman. It’s your dream…your life. Whatever you require, write it out and move on to the next step.

Next, you will need to put an estimate on what type of salary you would need to be able to afford your new dream life. This is your success number. Be sure to include expenses when doing the estimate. The simple (very simple) formula is revenue (sales) – expenses = profit. Depending on the type of business you have expenses could include, rent, utilities, equipment, software, salary but will definitely include the IRS. Adding the expense cushion is a must.

You have your dream life and success number. Now it is time to create a pricing strategy that will get you to your success number and ultimately your dream life! You must look at the big picture so you will be able to stand firm on your pricing in the future. Let’s crunch some numbers!