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Just starting as a Virtual Assistant or Social Media Manager? Here’s your go-to guide for how to price your online service for maximum authority, leads, and profit.
That startup life, right?
The one where you’re barely making ends meet.
In crippling debt.
Worrying why the fuck you left the security of your full-time job.
But *record scratch* Why is this our view of entrepreneurship?
Why do we constantly have to be hustling in the DM’s, working ourselves to the bone practically for free, just to make ends meet because that’s what the first months of entrepreneurship are ‘meant’ to be like?
So how do you get it right from the beginning? Truth is, it may never exist. But in today’s blog, I’m dropping my best tips for how to price your online service + sharing a free pricing guide to get you started!
Pricing is a fundamental aspect of your profitability, success, and prosperity in business. Sure, you can’t expect to make 5-figures in your first month, but you also can’t expect people to take you seriously if you’re charging less than a cup of coffee for value-packed services!
When I was first starting on my own I struggled with this, too. From what to charge to how the heck I was going to get out of debt while scraping to deliver value to clients with fewer hours in the day. Even writing that exhausts me, so I know the struggle.
But nailing my pricing was the best thing I ever did to put more time and money back in my biz, and I hope that by sharing my tips today, you can skip this stuff and start on the right foot today!
Time is your most valuable asset in business. Even more than money. But the thing is, time and money are inextricably linked. And nailing your pricing strategy is crucial to ensure abundance in time and money as you scale.
And OMG, pricing has so much power, you guys. It can uplift your value, and it can degrade it. Let’s do a little exercise to show what I mean:
Let’s say you’re looking at a $7 bottle of wine vs a $70 bottle of wine. Which one, without reading the label, would you assume to taste better?
Chances are, you’ll automatically associate quality in taste with the more expensive one, right?
You can view your expertise and client’s subsequent trust in you the same way.
And at the same time, as consumers, we often need to touch and feel value before we invest heavily into it. And that’s made even harder as a provider of intangible services!
All in all, everything comes second to your service pricing. Optimal pricing has a direct impact on your profitability and scalability, your lead’s view of your service quality and your business objectives. And that also makes it extremely hard to nail.
I just mentioned that as a service provider, you’re already at a disadvantage given your leads can’t touch and feel what you provide – they can only experience it. Of course, if you’re a Pinterest Manager, SMM or superstar VA, they see that in increased clicks, sales, leads and time. But communicating that from the outset is hard – but more on how to tackle that later.
There are so many factors that make it hard to price your services. Things like:
There’s science behind this, too.
There’s more to pricing than pulling a number out of thin air and chucking a dollar sign at the front of it.
Integrating psychology into your pricing decisions is crucial to scalable business and appealing to your dream client. And you don’t need to have a degree to do it! Simply think emotive language and visual cues. For example:
You look at $3.99 and it seems wayyy cheaper than $4.00, even though it’s just 1c less. This is psychological pricing.
It’s things like:
So how can you integrate these simple tricks into your pricing?
There are so many directions you can take when pricing your offerings! Everything from premium pricing to skimming strategies. But for the sake of you as a boss ass online service provider, let’s keep it simple with three:
This is pricing your online services based on their perceived worth, focusing on the value you deliver and the return on their investment, taking into account things like time saved, expertise and financial return. This takes a strong understanding of the intangible and tangible value of your services, and an ability to communicate that value to any leads that come your way.
This strategy requires pricing based on the market, and going sleuth-mode to determine what your competitors are charging. While this is great for getting a potentially easy sale if you’re the cheapest, it can lead prospects to make explicit comparisons between you and your competitors, viewing your unique expertise as an expense up for bargaining, rather than a solution.
This is probably the simplest way to price yourself as an online service provider. But it’s not always the most effective. Essentially, it’s taking the cost of your services and adding a markup. This could be pricing a service based on the number of hours it takes you to complete it, multiplying that by your hourly rate and adding on.
So with all these options, what’s the best way to price YOUR services?
Before you jump into the numbers, remember to consider the things that contribute to your rates and pricing, especially when first starting. Things like your:
Sure, an obvious place to start is with an hourly rate, and I cover the details pros and cons of this in my blog on how to enter the space as an online service provider. But to give you the 4-1-1:
This takes into account the value you bring (while acknowledging you’ve got more to build on) and also your need to, ya know, make a living! All while providing an affordable entry point for your clients. This rate is the perfect starting point as it ensures you’ve got a minimum in terms of the money you’re making, a bottom line you’ll accept to keep your clients (and you) happy. It also factors in the effort and dedication it takes to have your head inside someone else’s business – because that takes up a lot of rent!
While every VA or SMM is different, I know how handy a good guide can be (because I would have loved one when I was starting!). So to get you started, here’s a guide for pricing.
|Experience Level||<6 months||1-2 years||3+ years|
|Monthly Pinterest Management||$350/month||$650/month||$800+/month|
Hey, I want you to listen right now.
Before you get distracted by the shiny objects. I’m talking the fancy website, the cute logo, and the over the top socials. I want you to focus on nailing your pricing.
Yeah, the site, the brand, the profile are important. Don’t get me wrong. But the thing you NEED to get right from the start is your rate, most obviously to ensure you’re not looking at your bank balance on payday wondering where the fuck the rest of the money is.
For more support getting your pricing right from the outset as an online service provider, book in for a 90-minute intensive to help strategize and create your packages with more room for profits and purpose. 1:1, 1.5 hours, just you, me and all of the masterminding. Let’s go for the 90-minute Pinterest Intensive!
Now leave this blog and get to your pricing strategy!
I’m Willow Kaii
Let’s be real, running your own business is a 24/7 job, but when you love what you do it’s kinda amazing, right?
My life wasn’t always this way, though. After working at a boutique marketing agency, I went all-in on an online business with my fiance, Becca. I used the very Pinterest strategy I’ll teach you to scale our business, Bold x Boho, to 6-figures in just six months. My entire philosophy as a Business Coach is founded on this strategy, and I’m so passionate about sharing it with driven online entrepreneurs just like yourself. I’ll help you skill-up and scale-out with proven strategies. Oh, and you'll get me as your business hype-man.
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