Price your projects to build your future
If you’ve been in business for a while, then you know the basics of pricing your projects to make sure all expenses are covered and your profit margin is too. But if you are like I was the first several years of my business, chances are, you’re not factoring in all the things that will help you build your business, such as: your personal development, growing your team, your retirement, or investing in your family’s future.
How to charge for the future you want
If you want to make the money needed to build your future, then you need to charge the right amount. Pricing your work to reach a 50% gross profit margin is typically the best way to make sure you have the extra money needed for your goals. Meaning, if it costs you $2,500 to produce the projects (cost of goods sold), you should charge $5,000. That $2,500 profit covers your salary, overhead, marketing and investing in your future.
You may be thinking, “I can’t charge that much,” but the correct mindset would be, “I know my numbers and I am worth it.” Putting your customers’ needs first and providing them with a great experience will help set you apart from your competitors, which increases the perceived value of you and your business in your customers’ minds. That allows you to charge based on that perceived value you created and not attract customers who base their decision solely on price. Once you have that mindset, it will be easier for you to grow.
How to build value
There is no better way to build value than to make your customers feel heard and understood. That is the anchor that your brand and business should be built around. The customer experience and how they feel should be at the top of the list when it comes to your plans and strategies. You are here to provide them with the solutions, answers, and guidance they need. Put their needs first, and that will do the selling for you.
Ask questions and show concern about how and what you can do for them by educating them, over-delivering on your promises, being consistent, and genuinely having their best interest on their project results in mind. These are some of the key ways to build value.
Know your worth
It’s easy to drop your standards, to lower your price, or to even work with customers who aren’t a good fit. Not only do these actions take away from your goals, but they also doesn’t allow you to provide the service your customers deserve from you.
Getting paid what you are worth allows you build your brand and grow your business more effectively. You can put in the systems you need to maximize every aspect of your business. And focus on providing the best service to your customers, even providing them with more than they expected.
Keep in mind, you are doing more than just painting and providing a service. You are educating and offering solutions to problems, you are providing an experience that your customers will remember, and you are changing how they feel in their home. Doing that helps you bridge the gap between the price and the value that you have created, which allows you to set your business apart from any competition and get paid what you need to build your future.
Chris Wysokowski is the owner and business coach at Service Industry Empire. He focuses on helping you build your brand, grow your business, and maximize your potential. Helping you with brand building, marketing strategies and sales strategies is how he helps you get results.