Good morning, Boss Babes! Happy Top Knot Tuesday. Have we ever shared how we came up with that name for this small business tips series? It was because of that quote, “Put your hair in a bun, put on some gangsta rap, and handle it.” When you’re about to tackle something big & important, you gotta make sure your hair is out of your eyes & that your playlist is on point. ;) Today we’re tackling pricing.
We have tips from 5 spectacular Boss Babes from different industries sharing how they set pricing for their business, what advice they have for others, & how they’ve increased their prices in correlation with their expertise.
We have a swimwear designer, a photographer, a kitchen & bath design expert, a stationery designer, & a digital marketing agency. Even though these ladies all come from different backgrounds, the common thread in their tips is that you should do your research & then stick by what you believe your products and services are worth. Huge thanks to the Boss Babes in our community who shared their stories & insight. We’ll be sending you good vibes as you tackle setting pricing for your business for the very first time or as you work on increasing your prices now that you’ve refined your services & have even more experience. You’re awesome & your prices should reflect that and be in tone with market value. Thanks for checking out today’s post. Stay boss. xx
“Pricing I have found is always a difficult task. Before setting any price, do your market research and look to your competitors to see where they sit with their pricing. In the instance of my business, which is within the fashion industry, I make regular store visits to feel the fabrics and see the products firsthand. Afterwards, I create a spreadsheet of pricing. I often check websites as well to see their pricing brackets. As I also freelance doing graphic design, I create my daily rate by researching online to find the market rates and then compare this with my experience. I always quote higher (5-10%) to allow for wiggle room with clients. This is important, as each time you should be moving upwards as you gain more experience.”
“First, have an idea of what the industry standard is and what your competitors are charging. Then, there are several questions to ask yourself: 1) What is it you have to make to survive? Set a budget of what you need to pay your bills, figure out your overhead, add those together. Keep it simple! 2) What is your model? Would you prefer quantity or quality? There is no wrong answer. It truly depends on where you are in your business. If you’re first starting out it may be more important to get your name out there to more people who can then cause a ripple effect and get more and more inquires to you. The more people who talk about you, the better the supply and demand. If you’d rather spend more time with clients or offer a higher end product, then you may want to be on the higher end and potentially have less clients. It’s an individual’s decision. Personally, I’ve been in the photography business for over 10 years and I’ve gone back and forth between these two concepts depending on the year, the location, and what is personally going on in my life!”
St. Petersburg, FL
“Pricing is a challenge and something I constantly look at and try to keep myself where I need to be. Many designers price differently: there is a square foot method, hourly rate, or flat fee. I chose what seemed to work best for me and was most comfortable. I price jobs based on historical data, complexity of scope, creativity, and time involvement. I typically work with clients for a year from start to finish, so if I priced something wrong, sometimes it takes a year to realize where I missed the mark. So constantly evaluating numbers is extremely imperative to a successful and profitable business. I will say this, We should all make money. There is no shame in making a profit for a service someone is hiring you for. I never cut my pricing to “get a sale”, I hold firm for the value I bring. I have 15 years of historical data to back my pricing and know I am charging accurately.”
St. Petersburg, FL
“As a wedding stationery designer, this is something I get asked A LOT, and in the beginning I did A LOT of the asking. So that’s my first piece of advice: ask some people you trust who you aren’t necessarily in direct competition with (business wise). I started with hourly design fees, keeping a few end goals in mind: 1) The cost I was spending on materials, 2) The need to ultimately make more per hour than I was making as a teacher and then 3) What my value as an artist was to me (the hardest thing to answer!). Every 5-6 months I would reassess what I was charging, look at how my skills had grown, and how long something would take me, and then I would up the rate 40%-50%. It’s now three years later and I’ve refined what services I offer, my skill level has grown exponentially, and I’ve figured out how long each item takes & exactly what materials I’ll always need. Streamlining what I offer after so much trial and error has allowed me to switch to packaged pricing and design fees per item. I only charge hourly rates now on large scale mural projects because they’re more difficult to assess a time table on. You have to ultimately figure out what price is going to make something worth it to you and how much you value your time. If you start becoming miserable rendering a specific service within your business (for me that was random commissions like pet portraits or any artwork that didn’t align with my style), then either stop doing it and focus on the aspects of your business you do love, or up the price to make it worth your time. Finally, once you do set prices, DON’T APOLOGIZE or feel bad for charging what you believe your work is worth, even if it’s for a friend or family member. They should WANT to support you and your business, and you can’t run a business if you do things for free!”
St. Petersburg, FL
“At Wolf & Rabbit we set our prices depending on three main things. 1) Market research. As a national company we look at our local competitors as well as national brands. 2) Surveys. We also like to survey our clients and ask them questions about our pricing – how would you rate the value for money of our workshop/service? You can also survey Facebook groups for your niche and see the range of pricing for your service. 3) Our time. As we gain more clients, our time becomes more and more valuable. We never want to sacrifice quality for quantity and so we implement raises in our prices depending on the workflow and current pulse of our business.”