I just got off a training with my members on Pricing and Packaging your services.
We’re creating ease of enrollment and wanted to offer you some of the juicy parts. Why? Because it is the #1 thing I repeatedly see most people in service-based businesses are missing the boat on and was the 1st step toward building my professional practice into a million dollar business.
#1. Be really clear about who you serve. Most business owners start off in business trying to serve way too big of an audience.
My law practice took off big time when I narrowed my focus to serving families with young children and was able to become the go to lawyer in my community by educating families with young children in a way no other lawyers were doing at that time. I later expanded to serving business owners with young children at home, when I began offering legal services for business.
Up until I narrowed my focus, I struggled to get clients in the door and when I did, they often had to think about whether to hire me or were shopping around. Once I narrowed my focus and designed my service to meet their needs, I became unshoppable.
#2. Drop the free initial consultation and instead create a first meeting that provides tremendous value, has a name, and a specific purpose or outcome.
No one really values a free initial consultation and it’s most often seen as a sales meeting in which people really just want to know how much you charge so they can shop you.
When you shift away from the free initial consult and instead create a meeting that has a name, a purpose, and a value, your ideal clients want it, value it and whether they hire you or not, will tell all their friends and family about you.
Plus, you’re delivering value right from the start and when this meeting is done well and you prepare your prospects for it well, they aren’t focused on price, they are focused on the outcome of the meeting.
Make this meeting so awesome that you could charge for it and people would be happy to pay, but see below for how to use it in your marketing by offering it for free or discounted.
#3. Use your marketing to educate, educate, educate and give people an easy way to get your now named and highly valuable initial meeting for free or at a significant discount.
For example, if I served folks one-to-one, I would offer a pricing and packaging strategy session or Money Map Life and Income Planning Session at the end of this message, either at a discount or free, depending on how many new clients I wanted and where I was in my practice.
#4. Make a list of all the services you can possibly provide to your ideal clients by focusing on the problems they solve using outcome based language.
I see too many people trying to offer their services in terms of time or number of sessions (3-hours or 4 sessions) rather than in terms of the outcome provided.
Your pricing should be based on the value of the outcome you provide to the people you serve, not at all based on the number of hours or sessions it takes to get there.
#5. Base your fees (at least in the beginning) on the LEAST you can charge, rather than buying into some idea of charging what you are worth.
You are priceless.
You couldn’t possibly charge what you are worth, even if you tried. What you can do though is charge what you need so you aren’t sacrificing your life in service to your work AND once you’ve got confidence with your enrollment structure (which will happen quickly if you follow my guidance here) and your practice is full or close to full, you can increase your package fees based on the true value you are providing to the people you serve.
In order to ensure that you are not under-charging for your services while at the same time knowing the least you can charge, make sure you understand your Money Map Numbers at five levels — min to be happy, min to be of service, preferred, no limits, and now — so you know what you are working towards.
These numbers are calculated based on the life you want to have, what it will cost to have that life at your next number, the amount of time you have to earn in exchange for your services — which is less than you probably think given all the other things you need to do in your business.
If you found this helpful, check out our Money Map Life Planning Series. You can get it here.