Tag Archives: Services

by Angie Weinberger

When you are a business owner you often feel torn apart between taking on more clients and providing better service to your existing clients. Sometimes you might even feel that you deserve a higher quality in your personal life. Most business owners I know work every weekend and when they become mildly successful they realize that they have not been in touch with their oldest friends and even their family is often neglected.

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While you are transitioning from being in the start-up phase where every penny counts to be on a plateau of a revenue stream coming in from existing clients and before you develop your business further ask yourself these 10 questions:

1) How much turnover do I need in order to have a basic income that is sufficient to survive?
– Write down this number.

2) If I would have more income how would I spend it? Which of needs are not fulfilled with my basic income?
– Start a wish list or wish book.

3) Am I willing to sacrifice quality time for these wishes or is time with friends and family more important to me?
– Mark the wishes you would still like to see fulfilled.

4) Could I provide a better service quality to my current clients and raise my prices before acquiring new clients?
– Go through your services and write down what you could improve.
– Consider the value of your services and explain them to new clients.

5) Do I work for other providers and do I have clients in my portfolio that are not willing to pay for my new price level?
– Communicate your new price level to these providers and clients.

6) Do I believe that my services are so unique that no one else can provide them in the same quality?
– Review your services for the uniqueness and see if you can make them even more unique so people do not really care how much you charge.

7) Am I happy with my services and do I feel rewarded with my price level?
– Check your gut feeling with the price tags.
– Review all your services again and throw out what does not suit you any longer.

8) Am I still doing work that is not well paid? Is it for a good cause?
– If the answer is yes and the work is for profit and not for a good cause I suggest you decline it going forward.

9) Do I believe that I can make a difference in the world with what I do?
– If the answer to this question is “No.” talk to me.

10) Will I learn to say “No” more often in 2019?
– You can only say yes to this question.

The year-end is a good time to review your prices and your service quality. Sit down with a glass of champagne to celebrate your success. Go through the ten questions above and practice to say “No” more often in order to say “Yes” to the right clients and the right jobs.


Pricing in the professional services industry is nothing else than a value we give to an experience.

When we spend, there are pain points such as getting the car repaired and there are pleasure points such as a manicure. Sometimes we love to spend money on an experience that gives us a good feeling about ourselves or improves our general well-being. You probably feel great when you can buy a bottle of champagne on a weekend trip or book a wellness spa instead of an ordinary hotel.

We are normally way beyond the basic needs of the Maslow pyramid. Most of the people I know don’t really know how much a liter of milk costs. We happily spend money on holidays and luxury items. Being in a managerial function, this is what you do. You slave away and on weekends and holidays, you indulge. You want luxury in your lives. I used to consider myself a “high maintenance chick” with a feel for quality clothing, weekend trips to NYC and a no-budget policy for daily expenses. I used to say that I apply Reaganomics to my personal life (I spent more than I earned).

Today, I am more sensitive to this topic. As a solopreneur, I learned what it meant not to have money at all. This was a healthy experience (which has now found an end). What about you? You just started your business a year ago. You still can’t pay the bills. You still depend financially on your spouse, your parents or in-laws or the state? Or maybe you are an expat spouse, who has not found a job yet?

I hope these four methods will help you put a price tag to your service offering.

#1 Create your Client

So, before you even think about service packages and pricing create your clients. Imagine you can decide how your client functions. Understand what bothers them. Understand how they would love to spend their time. Understand what their pain and pleasure points are. Keep an inventory and write down the story of your ideal client.

#2 Target the Threshold

For some reason it is always easier to pay an amount that is slightly lower than the next bigger amount even though the price might be ridiculously high in the first place. For example I accept to pay CHF 95 for a manicure but if it was CHF 100 I would not buy this service anymore. Target the next big number but then stay slightly below. You should do market research and find out what competitors are charging for similar services but your clients normally don’t just come to you because of your price. Often it is a mixture of trustworthiness, competence that you are eluding, recommendations and good reputation. If your service was interchangeable they would get it online for free.

#3 Package the Pain

The pain is in the beginning. I prefer to pay for packaged deals for example for a holiday and I prefer to make the payment a few weeks before the holiday. I have introduced this idea to my clients as well. For you as an entrepreneur, it means less minute-counting, fewer invoices, less hassle and better cash flow (if you can agree advance payments). BUT for your client: It means that they have the pain once and then for a long time they feel good and enjoy your service.

#4 Reduce the Rebate

In the beginning of our business we tend to work with a small group of people we already know. We give them better prices than our usual clients. While it is natural that you want to give a favourable rates to your family members and their friends consider the impact this will have on your annual turnover. Over time you need to reduce those rebates and freebies. I prefer to work pro-bono once in a while and clearly call it charity. I don’t like to work with clients who cannot afford me or don’t know how to pay for the coaching.

If you feel insecure about your performance or if you test a new service you can run a “pilot”. Ask potential clients and friends to spend their time and to give you feedback and suggestions in exchange for a “free ride”. Make sure that you communicate the real price value of a free service. In Switzerland, you have to have a price list. Even if you won’t share your prices on your website, you can send a price list to clients on request.

If you feel under pressure from larger clients, let them know on the invoice which services you provided in addition to what you got paid for. This happened to me in the early days when I was too accommodating in order to win a corporate client. I avoid these deals now. If you gave reductions or rebates in the early days of your business, reduce them over time or return to the price you have on your price list.

Let me know how you will you create a good pricing model for your services and contact me if you struggle.

 

Angie