Service-based business professionals often struggle to maintain a profitable business that works for their lifestyle.
It’s frustrating and stressful. And it doesn’t have to be this way.
SECRET #2: How you offer your services is more important than the price!
I think this is the biggest stumbling block for most service providers– how do you actually make money if you’re paying other people to do the work?
The trick is in doing your homework. Don’t just put a price on something and hope it works out. Create a package of services, and then you need to figure out what it will cost you to outsource all the work in that package – while paying your contractors what they want to be paid.
Let’s say it costs you $500 to outsource a bunch of stuff, so that means you have to tack your profit on top of that cost. So instead of charging $500 for the package, you would charge $850 – enough to pay your contractors and then pocket $350 for yourself. Remember, you’ll still be managing the projects and doing the marketing to bring in new clients, so you need to be paid too.
Okay, that’s all good in well, but who is going to pay you $850?
It’s true you’ll be putting your service-based business into a whole new playing field, and maybe some of your clients won’t be able to afford your fees anymore, but you have to understand that there WILL be plenty of clients who’ll be happy to pay you what you’re worth.
You see, the difference is in how you offer your services.
If you put one thing on your website and say I want $30/hr., or I want $60 per graphic – your client is thinking, “That’s a lot of money to pay for one thing.”
But if you put a big list of things they get in a package, put a price on it, then tell them what their savings are by choosing that option, their thinking suddenly shifts and they’re excited to be able to have you do all of that as a service provider for them at such a good deal.
This is something I talk a lot about this in the Service Providers Reboot program – the packaging, pricing, and strategies for turning one service-based business client payment into recurring payments.
Now maybe you already have some packages available, but are they showing your clients the value in them? Are you being a pushover and letting your clients talk you into working the old way, or are you telling them “This is what I’m doing, take it or leave it?”
You have to train your clients how to work with you. Remember, even though you are a service-based business owner, you are the boss – and what you say goes.
When you start standing up for yourself, a funny thing starts to happen – your clients start realizing how much THEY need YOU and their respect for you grows as they realize they can’t walk all over you.
Some clients will be resistant to change and they’ll leave – let them go, in fact, hurry them out the door because they’re not the kind of people you need in your life. They’re exhausting aren’t they?
Trust me. You will get new and better clients because of the way you position yourself.
Now I have a complete lesson in the Service Providers Reboot on how to properly set up those boundaries and expectations with your clients from the get go. From what to put in your contracts, to how to let go of a crappy client – it’s all there. And I give you the templates and samples to help you get started taking charge of your business right away. Go to http://ServiceProvidersReboot.com to find out more.