Should I Charge Based on Industry Market Rates?

Industry prices are only part of the story

Paperback books typically sell for around $15-20 and most people would look at industry rates in setting prices for that type of product. However, that is not the only thing we should consider in terms of price setting. Business owners often think that we should only look at what others charging and set prices based on industry averages.

Look further ahead

Most business owners I work with are selling a professional service. More than anything, the biggest questio
I ask them to consider in price-setting is to ask themselves “What am I giving people in return for that investment?” and “What would my client’s life or business be like after they implement the strategies that I share with them?”

Really take the time to consider what people’s businesses and lives are like *before* you work with them and what it’s like *after* they work with you.

I encourage business owners to not only think about this, but to write it down and get really clear on the outcomes their clients/customers experience with them.

Are the results worth your prices?

After you get clear on what your clients are able to do *after* they use the strategies that you have given to them, ask yourself, “If they implement these strategies, what would be the results in their businesses?”

The answer to that question is what you base your prices on. You’d want to make sure what they get in return allows them to make that investment back and then some.

And if your services are not delivering a directly monetary value, consider the intangible results and outcomes the person would experience after having worked with you.

A Life Coach, for example could help someone get so clear on their life purpose that their entire life turns around and they’re able to experience greater fulfillment which then leads to job promotions, other opportunities etc. – and in looking back, they could not have accomplished those results on their own without the help of their life coach.

In summaryr
In setting prices, I would ask you to not only think about the service you’re delivering but the results and the outcomes that people are going to achieve from experiencing your products and services.

The other critical component is that you are much more able close the sale at those prices if you are also able to articulate the value of what you do in a really powerful way. If you are not confident in articulating the *value* of what you do, I’d encourage you to spend some time to get clear on that as well.