From the monthly archives:
Here’s a quick video blog post for you. It’s all about how I messed up, what I learned and what I would like to do to fix it!
If you want to see how I want to make it up to you, then here is a link telling you all about it. Go and check it out for yourself by clicking here.
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One of the biggest mistakes solepreneurs make is undercharging for their expertise and knowledge. Although it is important to be sure that you are charging accordingly for your expertise, this is sometimes something that people are uncomfortable with when they are first starting out in their own business.
In this instance, I recommend that if you are just starting out, that you provide your service to clients at a rate that you feel comfortable with. Work with a couple of people at this rate and get really great results, and then with each new client, you will feel more comfortable about increasing your fees.
You can then continue with this increase until you reach a point where you are charging well for your time, and in accordance with what benefits you are providing your clients with as a result of working with you.
The more time you are giving to your clients on a personal level, the higher the fee for that time should be. A premium priced product is where you are helping your clients to actually implement something for them by providing personal attention. As you work down the ladder and have groups working together, or are providing information in a virtual environment to many, possibly hundreds, then you would most likely reduce the cost of those services accordingly.
However you are providing your service to your clients, you must still be sure that you are covering your costs. Some people make the mistake of thinking that if they are providing services in a virtual environment, that they have no associated costs. You must remember though that there are still things like audio services, transcription costs, teleseminar hosting fees, email service providers. All of these things need to be taken into account just as hall hire, printing costs and staff costs need to be taken into account for offline pricing.
Most of all, be very clear about the value and outcome you provide to your client and use this as a basis for the pricing structure you put in place.
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