Here is a common question I get from women who are wrestling with what they charge: “How can I justify my price?” But let me ask you a question- who are you justifying your price to? The truth is that there is only one person you have to justify your price to.
Coming up with a price is a combination of many factors such as what similar service providers charge and what the market will bear etc. And you don’t have to charge what everyone else charges.
You can also charge more than others if you can check off one or more of the following. Provided, that is, that YOU believe in your own prices.
- You’ve got a lot of experience.
- You’ve got a great relevant educational background- certifications etc.
- You provide a specialized service.
- You get results for your clients.
- You are primarily driven by referrals
I share this list merely to help you “justify” your price to yourself. It’s to make you feel better about your fee. Because you don’t need every bullet point. You only need ONE. If you have a lot of experience, then rest easy about your price. If you’ve invested in your training, then you should charge good money and feel good about it. If you are brand new, but you get great results for your clients, then I also want you to feel great about what you charge.
Now I realize that you are not perfect, and it’s likely that your service is not perfect either. Getting caught up in the pursuit of perfectionism is a huge hang nail for good girl service providers. You’ll simply never attain perfection. And because we are not perfect, we fret about our fees. But tell me this:
Do you think that the results your clients gain are worth more than the cost of your service?
If the answer is yes, then rest easy.
So when you tell prospects what you charge and the type of results they may gain from your work, this is not about justifying your price. You are helping them make an educated decision. You are looking for a win-win. They will decide whatever they decide. You can’t control that. (Sorry.) If you feel good about your price, and stand firm, then people will self-select.
Ultimately, this is about convincing yourself. You are the only one you have to justify your price too. People will either take it or leave it. Not everyone will be able to afford you. And not everyone is a good client for you. (And some may not be a good fit for your service.) You simply want enough people to pay your fee, but you don’t need everyone to pay your fee.
The only person you have to justify your price to is yourself. If you feel good about your fee, then this will come across.
Try this: grab a piece of paper and list five benefits of working with you. How are people’s lives or businesses better as a result of your work or product? Then ask yourself, are these benefits worth more then what you charge? If the answer is yes, rest easy. You’ve justified your price—to yourself.
(I have written two workbooks on pricing. One is called How to Set and Raise Your Rates, and the other is called Emotional Pricing- how to feel great charging what you’re worth. They are available in my online store.)