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What to Charge - A Guide for Solopreneurs

Setting your rates can be a struggle. This presentation will help you set your baseline and breakeven rates.

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What to Charge - A Guide for Solopreneurs

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  1. A quick guide to setting your rates. What to Charge ...for Coaches, Consultations and Creatives

  2. Deciding what to charge is one of the trickiest parts of starting a new venture..

  3. Ask for advice and you will get a wide range of opinions from charging “newbie” prices to charging “what you are worth” prices.

  4. Setting the “right” price for you is a subjective process - meaning there is no “right” answer except the answer that is right for you.

  5. KEY POINT Your price strategy must be in alignment with your niche or ideal audience and your business goals.

  6. YOUR FEES MUST MATCH: the number of clients you plan to have at one time, • the number of clients you plan to have at one time, • the amount your clients are willing to pay, • the perceived value of your product by your audience, • your financial goals.

  7. If your niche or your business goals have not been defined, you risk creating products no one wants to buy or, worse yet, products you begin to hate to deliver.

  8. This is not optional. When determining your price there are a few solid components you absolutely need to take into account...

  9. You need to determine your costs to: • provide the product, • deliver the product, • and cover your living expenses.

  10. Product Delivery Costs Make a spreadsheet of your ongoing business costs related to the delivery of your product. • Monthly phone bill • Internet service provider • Website hosting • Autoresponder monthly service fees • Credit card processing monthly fees (if not using PayPal’s free version) • Any other monthly fees related to the delivery of your product

  11. Hard Product Costs In addition factor in hard product costs such as: • Video or audio hosting for virtual programs • Webinar hosting fees • Meeting space renta • Product supplies (ie. binders, workbooks, etc.) • Graphic design fees for course materials • Printing costs

  12. Other Business Costs Finally there are business costs not related to the specific program but required for you to be in business: • business cards and marketing materials • ongoing continuing education • coaching • insurance • association & chamber memberships

  13. Living Expenses Next there are your living expenses. What will you need to earn to cover these basic items: • rent/mortgage • utilities • taxes • insurance • food • transportation • clothing • medical out of pocket expenses

  14. Monthly Income When you have all of these numbers worked out, distill that down into a monthly cost. What do you need to bring in each month to make a living? Divide that by four to get an average earning target per week.

  15. Starting Point Once you have that figure you have a STARTING point. There is a lot more that you need to do but this gives you a minimum target. You haven’t made any money yet and you haven’t paid yourself!

  16. PAY YOURSELF What do you need to earn for your time? First, figure out how many hours you will work in your business weekly. This includes time behind the scenes doing paperwork and time “on stage” when you are networking, coaching or delivering your product.

  17. Profit Now you have to decide on profit. What do you want to earn per week above costs, including your own salary? A common profit margin is 10-20%.

  18. Billable Hours vs. Total Hours BUT you don’t get paid for every hour you work. Here is the tricky part of this calculation. • How many hours will you actually be paid for? • If you provide one-on-one services, how many hours a week will you provide service? A possible estimate is that at least 25% of your time will be spent on non-billableactivities such as paperwork and another 25% on marketing activities such as networking.

  19. Days Off And we are not finished yet. • Do you want to take a vacation? • Are there weeks of the year you will you not be working? • How many holidays or days off will you need in addition to vacation days?

  20. So now we’ve established a base rate. There’s much more that is going to go into setting your prices but this first rate will be a guide for moving forward.

  21. More Topics Other factors that go into developing your rates are: • Lifestyle Goals • Specialized Services • Custom Tailored Products • Value • Competition • Audience Price Perceptions • ....and More.

  22. Get it on Amazon Now AMAZON E-Book - http://bit.ly/whattocharge We will cover... • How to set baseline, break even and profitable rates. • The critical mindset that eliminates the dreaded task of “selling” yourself.

  23. Get it on Amazon Now AMAZON E-Book - http://bit.ly/whattocharge And... • How to make your competition irrelevant. • Tips on how to set prices that much higher than you think you can charge. • The problem with hourly rates and how to avoid rate traps.

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