Hey there freelancers and business owners! You may want to brace yourself. I’m about to say (type?) two very scary words:
Scope. Creep. 😱
These are dreaded words for any service provider to hear, so why does it happen so much more often than it should?
By the end of the project you’re deeply resenting your client and they probably didn’t have the best experience working with you either. This will make it difficult to work with this client again in any recurring way, and they may give you not-so-nice word of mouth reviews that could ensure you don’t get to work with any of their colleagues, either. 😬
To make it even worse, you’re more burned out and exhausted than ever, AND you’re still broke.
So, the magical question: How do we avoid this? 🤔
Would you believe it can have a lot to do with how much you charge for your services? Stay with me, I’ll explain it all!
Over the years I’ve worked with so many business owners and entrepreneurs who are overworked, exhausted, and burned out, yet they still aren’t seeing revenue coming in at the level they want. I’ve found that many times, their issues can be resolved by rethinking how they price their services.
Here are 4 things to think through when pricing your services:
- Know Your Overhead Costs
- How much does it cost to run and move your business forward? Tools, software, anything you invest in to make your business BETTER should be considered when you’re pricing your services out. This helps to ensure you and your business stay in the black.
2. Account For Taxes
- Don’t forget this important piece of the puzzle! Consider the 20%-30% you’ll be paying in taxes when you price out projects to make sure you aren’t cheated out of the income you’re working for. This can make a big difference between what you THINK you’re making and what your actual take home is if you aren’t including this figure
3. Account For Buffer in Your Calendar & Budget
- On the agency side, we’re often building out sites, courses, custom client projects, you name it. Things can change at the drop of a hat (both on the client side and internally!). Does this mean you have to spend MORE MONEY in the project itself or spend MORE TIME working on things that continue to pop up? If you stay on that path, before you know it you will have blown way past the flat fee you charged when the project began, and will most likely be left with very little profit to show for all your time invested.
- To prevent this sad and exhausting outcome, account for some buffer in your calendar. I always have at least a 2 week buffer built into each project I take on to make sure I have the time needed to complete the project, but also to just guarantee some rest time BETWEEN projects for me and my team. It’s nice to know you have the time set aside (and paid for!) if you need it, and on that same page, it’s nice to know you have some wiggle room in your budget in case you DO need to spend some extra time or pay for some extra services to get that project done.
4. Segment Your Services as Add-Ons
- Protect yourself from scope creep is to make sure you aren’t charging just 1 flat fee for everything! Create a base package for your client, and have some add-ons planned and priced to help protect your time and your resources as a business owner when your clients ask you for additional services.
And friends, most importantly: Price your services according to your VALUE! Your clients are paying for more than just a deliverable, they’re paying for your experience and your expertise, so know your value and price your services accordingly!
If you undervalue your own worth, you’ll never earn the income you truly work for and deserve.
Here’s to you understanding (and charging!) your worth! 🥂
First time here? Thanks for stopping by!
I’m Emmy, Storyteller + Strategist who helps coaches & creative entrepreneurs to elevate their online presence, and streamline their operations to increase their impact.
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