How do you actually set your prices? 

And how do you do it in a way that reflects your value, while still attracting your ideal clients?

If these questions have been swimming around in your head, know that you’re definitely not alone. This is a hot topic amongst a lot of designers I speak to. 

It’s not easy to tackle, but trust me – pricing your services for profitability is crucial to keep your business propelling forwards. 

If you’re undercharging or just not sure about where your pricing stands, then it’s time for a change. Pricing is a make-or-break factor in our business. Getting it right takes some work, but it’s going to set you up for better, more profitable business in the future.

The Cost of Underpricing

Here’s the truth: underpricing is a slow business killer. It’s a common misconception among designers that offering lower prices will attract more clients. Sure, it might work in the short term, but ultimately, it’s a race to the bottom. Undercharging not only eats into your profits but also your capacity to grow. It’s exhausting to juggle too many projects for little to no money, and it often results in creative burnout. Worse yet, it attracts clients who aren’t willing to pay for quality and often disrespect your expertise. The first step to profitable pricing is acknowledging your right to compensation for your unique skills and the significant impact your work has on clients’ lives.

Knowing Your Worth

A major hurdle for many designers is lack of confidence in what they offer. Before you can set profitable rates, you must first understand the immense value of your services. What transformation are you providing clients? Are you saving them stress and time during their renovations? Uplifting their everyday living conditions with thoughtful designs? Each of these outcomes is priceless and should be mirrored in your pricing. Take some time to jot down the results and benefits your clients enjoy after working with you. Recognising your worth makes it easier to price accordingly.

Pricing for Profitability

Now, let’s get practical about how to set your prices to ensure you’re running a profitable business. It starts with figures—know your costs, including software, marketing and man-hours spent on each project. Calculate your hourly rate by adding up these costs to cover expenses and make a healthy profit. Remember to include a little “fat” for unforeseen issues like breakages or added time. But don’t get bogged down by hourly rates alone—consider project-based pricing to cover the comprehensive value and outcomes you deliver. Your expertise is beyond just time spent; it encapsulates years of experience, so value it accordingly.

Positioning Your Pricing with Confidence

Confidence is key when discussing money, and presenting your pricing with conviction is vital. Own your rates; present them clearly and without hesitation. A client sensing uncertainty might try negotiating, but remember that your premium service provides real value. Offering tiered packages can also position your pricing confidently, allowing clients to see the full spectrum of what you offer—from basic consultations to full-service projects. Aim to perfect a few services and deliver each with exceptional quality before evolving your offerings.

Communicating Your Value

Lastly, it’s important to communicate your value effectively. Clients should appreciate your expertise even before discussing pricing, which highlights the importance of investing in branding. Your online presence—right from your website to your social media—should establish your credibility and showcase past successes. Align your personal branding with the clients you aim to attract. If you’re wondering why those high-end clients are elusive, consider whether your branding reflects your desired clientele.

Profitable pricing is more than merely picking numbers out of a hat. It involves understanding your self-worth, calculating costs meticulously and positioning your services as the premium offering they are. 

Your expertise, creativity, and time are beyond valuable. So, if you’re feeling uncertain about your pricing, now’s the time to reassess and plan for a more profitable future. 

Remember: your prices should work for you, not against you.

Download the FREE pricing and services guide here: https://goldchalk.mykajabi.com/offers/kc8TCz72

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