How To Set Prices For Your Small Business | Phil Pallen | Summary and Q&A

TL;DR

Learn how to price your products or services effectively using different pricing models, including dividing your salary by a thousand and adding fifteen percent, charging a flat rate, or implementing a retainer system.

Key Insights

• 🗯️ Pricing is a challenge for freelancers and consultants, but there are effective methods to determine the right price.
• 🧚 Dividing your salary by a thousand and adding fifteen percent is a quick and fair formula for beginners.
• ☠️ Charging a flat rate can help accumulate clients and build trust, but it's crucial to calculate your minimum needs and provide value to clients.
• 👻 Implementing a retainer system offers stability for both freelancers and clients, allowing for uninterrupted work and a guaranteed income.

Transcript

pricing your product or pricing your service how on earth do you know how much you should charge in this video i'm actually going to give you some formulas so you know exactly how to do this on this channel i talk a lot about business branding marketing and travel so if those are topics that interest you i encourage you to stick around if you want ... Read More

Questions & Answers

Q: How can I determine the right price for my services or products?

There are several methods you can use. You can divide your salary by a thousand and add fifteen percent, charge a flat rate based on your minimum needs and value offering, or implement a retainer system.

Q: What factors should I consider when determining my pricing?

You should consider your expertise level, the number of hours you can realistically bill, the value you provide to clients, and the minimum amount you need to survive.

Q: Is charging a flat rate a good option for freelancers or consultants?

Charging a flat rate can be beneficial for accumulating clients and building trust. However, it may not be suitable for everyone, especially those who struggle to set boundaries or prefer billing hourly.

Q: How can a retainer system benefit both freelancers and clients?

A retainer system provides stability for both parties. Clients know they have guaranteed access to your time when needed, and you have a clear understanding of your income upfront.

Summary & Key Takeaways

• Pricing your products or services can be challenging, especially for freelancers or consultants. This video provides formulas and strategies for determining the right price.

• Option one suggests dividing your salary by a thousand and adding fifteen percent. This method takes into account the hours you can realistically bill your clients and your expertise level.

• Option two is charging a flat rate, which can work well if you know your worth and the minimum amount you need to survive. It's important to provide value to your clients and be honest about the number of clients you can maintain.

• Option three is using a retainer system, where clients pay for a guaranteed block of your time. This approach provides stability for both you and your clients and helps you avoid the hassle of estimating.