3 Things You Must Know to Price & Package Your Services Profitably

3 things you must know to price and package your services profitably

If you’re a service based small business owner, you know how valuable your time and financial resources are.  Pricing is on your mind regularly as you package new offerings, estimate potential projects, and track your financials.

Pricing is one of the few things about owning a business that can make or break you. Get it wrong and you’ll find yourself in deep waters even if the opportunity of a lifetime finds its way to you.  Remember that if you’re losing money on a small bit of business, if you suddenly get a fire hose full of business you do not make it up in volume. You simply drown faster and more dramatically.

The good news is since you’re the boss you can and will change (whether a tweak or an overhaul) your pricing to address ever-changing life, business, and market conditions.  The secret lies in a sound foundation and thought-process and regular measurement.

Here are 3 things you absolutely must know.

1 – How to calculate your hourly rate

I beg you –  Do NOT just pull a figure out of the air and run with it.  You need to understand your numbers or you will forever be winging it.

Not planning on trading time for money so you think you don’t need an hourly rate?

Even if you never-ever work hourly with clients it is imperative to know what your hourly rate is so you can price your packaged and group services profitably and have a metric against which to measure your estimates versus real-world experience.  (Has it ever taken you longer to prepare for or complete a project? I thought so…)

A thought process and calculation that takes into account time, money (including expenses and taxes), and capacity is crucial to making this work.

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AEP 025 – Special Guest Shelley Hawkins

Active Entrepreneur Podcast #25 Shelley Hawkins - The Self Connection

Shelley and her work hold a special place in my heart and my life.  I had the good fortune of meeting her at a business conference via introduction by a mutual friend.  If you want to get beneath the surface and into the energetics of your life and business, you’ve come to the right place.

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Do You Find Yourself Working More But Earning Less? 3 Reasons You Fall into this Trap and How to Break Free

Why You Are Not Getting Paid What You're Worth

Have you ever found yourself working extra but not getting paid for it?

I don’t mean over delivering by adding extra value and delighting your clients. I’m ALL for that.  In fact I highly recommend frequently delighting your clients!

What I’m talking about is the dreaded… (Cue the spooky music)

Scope Creep…

Or the

Over-needy client who wants “just one more little thing”.

Ever happen to you?

If you’re in business – of course it has!  Scope creep can be a natural byproduct of many different kinds of projects (think: design, tech projects, and construction just to name a few).  Wanting “one more thing” can be a sign of someone who is thinking through their requirements as they go.

Neither of these things is inherently bad.  It’s what you do with them that set you up for success or a spiral of resentment, misery, and lack of cash.

Here are the top 3 reasons why you may find yourself working like a dog but earning less and less and what to do about it.

Wanting to Be “Nice”

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AEP 024 – Turn Down the Noise

 

Turn Down the Noise to Focus

If you find yourself stressed with your emotional and mental energy leaking out of your pores, it’s time to take radical action.  The recent election results and plethora of social media and news firing from all sides can be deadly to your business. Now is the perfect time to stop comparing yourself to others, turn off the noise, and get to work.

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5 Good Reasons to Run Experiments in Your Business

5 Good Reasons to Run Experiments in Your BusinessDo you spend a lot of time thinking about taking action?

Are you often wringing your hands and gnashing your teeth trying to figure out the perfect action to take?

That’s a great deal of time, energy and opportunity wasted.

How might things be different if you treated your business as a series of calculated experiments?

My natural proclivity is to over-think, over-plan, and over-prepare.  The problem is it was sucking the life out of me and was working against me as a business owner.  That’s when a few mentors planted the seed of experimentation in me.  Things have never been the same – in a damn good way – since.

For the purpose of this discussion, I define experimentation as taking intentional action, consistently, over a long enough period time to get meaningful data.  You may or may not get the outcome you seek but you will get experience and data that informs your next step.  It’s not haphazard “throw spaghetti at the wall and see what sticks” style, but thoughtful, playful choices of what actions to take based on your overall strategy.

Here are 5 reasons to approach everything with a spirit of experimentation.

You will learn far more from doing it than from thinking about it

I was talking to a colleague the other day that admitted that she spends a lot of time thinking about thinking about taking action. It gets her hung up and in a vicious cycle of not taking (enough) action over a long enough period of time to see if her ideas are viable.  I said, “You will learn far more from doing the thing than from thinking about the thing.”   Action is the antidote to fear, uncertainty, and stagnancy.  If you treat everything as an experiment, you spend more time in action and less time thinking about it. [Read more…]

How to Prioritize When Everything is a Priority

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