3 Keys to Charging More

I've just published a podcast unpicking the charge-by-the-hour model and explaining why for most businesses, it doesn’t work.

I also advocated for a solopreneur, whether that is a trainer, coach or someone selling their know-how, like a marketing consultant, it really doesn’t work unless you are making £250 per hour.

I’m anticipating some healthy debate about that, as some will argue that £250 is way too expensive… but I argue it is the only way you can build a sustainable business and make a decent living.

I’m building on that point here, as pricing, sales and marketing are inextricably linked. 

How you market and sell has a detrimental impact on your pricing. Let me give you an example…

Let’s say you charge £5k for your services. For most markets, your competitor's services are pretty much similar. From the future client’s perspective, they are looking for some key benefits from your service and if both you and your competitor do the same, the service is the same in the client’s eyes.

So, you are both charging £5k,

for more or less the same benefits.

Who does the client choose?

 Let’s now add some complexity to this…

 The client has had no dealings with you in the past.

Who does the client choose?

 The client has had no dealings with you or your competitor in the past.

Who does the client choose?

 Ok, the client has more confidence in your solution.

Who does the client choose?

 The client is aware of your expertise in this market.

Who does the client choose?

 The client relates to you more than the competitor.

Who does the client choose?

Hopefully, you can see, if the odds are even, clients make decisions based on how they feel about the person or company. Often the advantage comes down to confidence and trust - their belief in the person, company and service.

Who does the client have confidence in and trust to help them achieve and outcome or result?

That is what makes the difference in most cases.

Now let’s add some complexity to this again…

Let’s assume you have the client’s confidence and trust….

 What if the client respects you as an authority in your field (your personal or business brand) and can relate to you?

 Can you charge more than your competitor?

 How much more?

 Well, all the data suggests between 25-50% more if you have the trust and confidence of the client. Much of your pricing is determined not by the market, but by the marketing.

 Imagine the difference in your business if you can achieve that advantage. What would a 25% or 50% uplift in prices mean in your business?

 Let’s be conservative and say 15%.

What would a 15% fee increase across the board do for your business?

A business doing £200k per year, that is £30k.

£30k extra just by positioning your business based on authority, relatability and confidence.

Now, imagine what happens if you shift to value selling.

It gets much easier to command a 50% higher fee than your competitor.

I know for many it would massively improve their bottom line.

For some, it could mean being a bit choosier about the work you take on.

For others, it could mean…. Making a profit.

There are 3 Keys to charging more

Your target market must be aware of, relate to and believe in you, your value and your offer.

• Aware – Know about it, have seen it on multiple occasions. This is not a one-hit wonder.
• Relate – See how that could be relevant to them. This does not happen with one interaction.
• Believe – that you can do what you say you can. This is about authority and trust.

 Have you spent time building trust in the market?

 Are you devoting time to building your brand (personal or business) widely within your target market?

 Are you using a % of your efforts to develop your authority in your future clients’ minds?

The crazy thing is as you look around the world today, the best services and the most profitable businesses aren’t always the same.

 Some people get grumpy when they see a decent service win over and above 'the best'….

The best solution doesn’t always win…. but the most trusted one does.

 You can be the foremost expert in your field, and have all the letters and certificates, but it comes down to a client’s gut feeling about you, your service and whether they have confidence that you can get them the result they want.

 If you like the sound of that, perhaps we should talk.

 If you are selling your skills, know-how or an expertise-driven service, I can help you leverage your authority to work with the right clients, stay in your sweet spot and make more money in your business.