RR#088 How To Charge Premium Rates (And How Not To)
Ever wondered why some consultants, coaches, and service providers seem to effortlessly command premium rates while others struggle to make ends meet?
It's not just about expertise. It’s about strategy.
Specifically, pricing strategy.
Service providers who command premium prices have businesses that are more profitable, easier to manage, and deliver better results.
Why?
Because premium prices allow service providers to charge more for less (but better) work.
This ultimately means:
Avoiding Burnout: By working with fewer, but higher-paying clients, you reduce your workload and stress.
Attracting Ideal Clients: Premium rates tend to attract serious clients who value your expertise and commitment.
Creating Options: With more revenue from fewer clients, you have the flexibility to explore new opportunities, invest back into your business, or simply enjoy more free time.
So, how do you start commanding premium prices for your service?
Here are 3 ways I’ve found to get more leverage on your time and charge more for what you do:
Productizing Your Services: By creating standardized offerings, like a paid audit or a complete solution package, you streamline your work and provide clear, tangible value. This approach not only saves time but also allows you to demonstrate your expertise upfront, justifying higher rates later. (For a deeper dive, check out my video on productizing services.)
Building a Strong Brand: A robust brand elevates your perceived value. It's about more than just a logo or a catchy slogan. It's about being seen as a leader in your field. This increased authority and credibility naturally lead to more trust and higher rates from your ideal clients.
Leveraging Social Proof: Testimonials and case studies are your secret weapon as a service provider. They demonstrate your success and the satisfaction of your clients, making it easier to command higher rates. They also lower the perceived risk of working with you. And since price and risk are inversely related, the more proof you have, the more you can generally charge.
Remember:
Pricing isn't just a number. It's a reflection of your value, your brand, and the impact you have on your clients.
And that’s why 3rd party platforms like Upwork should be approached with caution.
They make charging a premium difficult. I actually just recorded a video on this topic specifically: Knowing what I know now about charging premium and client acquisition in general, would I even bother to use 3rd party platforms like Upwork?
I share my answer to that exactly here.
P.S. Wanna take it on the road? Tune in on Repeatable Revenue Podcast here.
