What to Charge - A Guide for Solopreneurs - PowerPoint PPT Presentation

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What to Charge - A Guide for Solopreneurs

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Setting your rates can be a struggle. This presentation will help you set your baseline and breakeven rates. – PowerPoint PPT presentation

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Title: What to Charge - A Guide for Solopreneurs


1
A quick guide to setting your rates.
  • What to Charge
  • ...for Coaches, Consultations and Creatives

2
  • Deciding what to charge is one of the trickiest
    parts of starting a new venture..

3
  • Ask for advice and you will get a wide range of
    opinions from charging newbie prices to
    charging what you are worth prices.

4
  • Setting the right price for you is a subjective
    process - meaning there is no right answer
    except the answer that is right for you.

5
KEY POINT
  • Your price strategy must be in alignment with
    your niche or ideal audience and your business
    goals.

6
YOUR FEES MUST MATCH
  • the number of clients you plan to have at one
    time,
  • the number of clients you plan to have at one
    time,
  • the amount your clients are willing to pay,
  • the perceived value of your product by your
    audience,
  • your financial goals.

7
  • If your niche or your business goals have not
    been defined, you risk creating products no one
    wants to buy or, worse yet, products you begin to
    hate to deliver.

8
This is not optional.
  • When determining your price there are a few solid
    components you absolutely need to take into
    account...

9
  • You need to determine your costs to
  • provide the product,
  • deliver the product,
  • and cover your living expenses.

10
Product Delivery Costs
  • Make a spreadsheet of your ongoing business costs
    related to the delivery of your product.
  • Monthly phone bill
  • Internet service provider
  • Website hosting
  • Autoresponder monthly service fees
  • Credit card processing monthly fees (if not using
    PayPals free version)
  • Any other monthly fees related to the delivery of
    your product

11
Hard Product Costs
  • In addition factor in hard product costs such as
  • Video or audio hosting for virtual programs
  • Webinar hosting fees
  • Meeting space renta
  • Product supplies (ie. binders, workbooks, etc.)
  • Graphic design fees for course materials
  • Printing costs

12
Other Business Costs
  • Finally there are business costs not related to
    the specific program but required for you to be
    in business
  • business cards and marketing materials
  • ongoing continuing education
  • coaching
  • insurance
  • association chamber memberships

13
Living Expenses
  • Next there are your living expenses. What will
    you need to earn to cover these basic items
  • rent/mortgage
  • utilities
  • taxes
  • insurance
  • food
  • transportation
  • clothing
  • medical out of pocket expenses

14
Monthly Income
  • When you have all of these numbers worked out,
    distill that down into a monthly cost.
  • What do you need to bring in each
  • month to make a living?
  • Divide that by four to get an average
  • earning target per week.

15
Starting Point
  • Once you have that figure you have a STARTING
    point.
  • There is a lot more that you need to do but this
    gives you a minimum target.
  • You havent made any money yet and you havent
    paid yourself!

16
PAY YOURSELF
  • What do you need to earn for your time?
  • First, figure out how many hours you will work
    in your business weekly.
  • This includes time behind the scenes doing
    paperwork and time on stage when you are
    networking, coaching or delivering your product.

17
Profit
  • Now you have to decide on profit.
  • What do you want to earn per week above costs,
    including your own salary?
  • A common profit margin is 10-20.

18
Billable Hours vs. Total Hours
  • BUT you dont get paid for every hour you work.
    Here is the tricky part of this calculation.
  • How many hours will you actually be paid for?
  • If you provide one-on-one services, how many
    hours a week will you provide service?
  • A possible estimate is that at least 25 of your
    time will be spent on non-billableactivities such
    as paperwork and another 25 on marketing
    activities such as networking.

19
Days Off
  • And we are not finished yet.
  • Do you want to take a vacation?
  • Are there weeks of the year you will you not be
    working?
  • How many holidays or days off will you need in
    addition to vacation days?

20
  • So now weve established a base rate. Theres
    much more that is going to go into setting your
    prices but this first rate will be a guide for
    moving forward.

21
More Topics
  • Other factors that go into developing your rates
    are
  • Lifestyle Goals
  • Specialized Services
  • Custom Tailored Products
  • Value
  • Competition
  • Audience Price Perceptions
  • ....and More.

22
Get it on Amazon Now
  • AMAZON E-Book - http//bit.ly/whattocharge
  • We will cover...
  • How to set baseline, break even and
  • profitable rates.
  • The critical mindset that eliminates
  • the dreaded task of selling yourself.

23
Get it on Amazon Now
  • AMAZON E-Book - http//bit.ly/whattocharge
  • And...
  • How to make your competition
  • irrelevant.
  • Tips on how to set prices that much
  • higher than you think you can charge.
  • The problem with hourly rates and
  • how to avoid rate traps.
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