Fee Setting Tips: What Does Your Rate Say About You?

Once you have people coming into your pipeline through a coherent and multi-faceted lead generation strategy you must set a rate that doesn't repel people, but instead attracts people.

Most people I encounter fall into one of two camps.
   - They are either undercharging by a considerable amount.
   - Or they have no idea what to charge at all and they feel lost.

So, I'm going address this common issue for entrepreneurs right now. Let's make this simple.

Grab a piece of paper and write down what you think you should charge. For this exercise make it an hourly rate. Don't think about it too hard, just write it down.

Now I want you to double that number.

Somewhere in between that initial number and the doubled version is what your actual rate should be. You can take an average of the two numbers if you want to make it simple and you're set.

This new rate will start you off, but it certainly won't be the rate that you'll have forever. As you grow, you should be raising your rate appropriately.

You don't want to have a rate that is so low that people say, "hmmm… does this person know what they are doing?"

Your rate is an announcement to the world of your confidence in your skill set.

When you tell people your rate, what are you saying about yourself? You must establish a rate that is meaningful and that really represents you as an expert in your field.

Beyond that simple hourly rate, you should have a menu of services. Too many coaches, consultants, healers and other Helpingpreneurs only offer one thing.

If you went to an Italian restaurant and the only thing they had was spaghetti, even if you loved spaghetti, I doubt you'd go back there again because not everyone going with you may like spaghetti and you may want something a little bit different. You must have a menu.

On the other hand, don't create a menu of services that is extremely large or complex. If you have 20 different items or services, it might be so confusing that it will overwhelm people.

You should start with about three packages. Why? Most people don't like to make decisions!

When offered three choices, they will usually go with the middle package. At convenience stores, the number one drink size chosen is the middle one. People think, "the small one may not be enough, but the big one looks too large, so I'll pick the middle one."

Having three packages helps people make a decision. Generally people will feel safe and comfortable with the middle package.

So the key points to remember when evaluating your rates are:

   1. Don't undercharge. Remember that your rate is a statement to the world of your confidence in your skill set.
   2. Continually re evaluate your rate and make changes when appropriate.
   3. Have a menu of services – optimally around three main programs at different price points.