Now that we’re approaching the end of the year, a lot of creatives and business owners have one big question on their minds – should I increase my prices next year or not? And if yes, how should I do it? How do communicate this to my clients? What is the “right” price anyway?
So many questions…
Pricing your services can indeed be very overwhelming and unnecessarily stressful. You’re not sure where to start, how to price yourself and how to communicate the value that you can bring to your clients… I feel you.
But you’re not alone in this. Like many starting entrepreneurs, I too have experienced pricing myself too low and all the terrible consequences that come with it. Until I changed my mindset and realised that underpricing myself is hurting my business in more ways than I imagined.
So in this episode, I’m having some honest money-talk with Abbey McGrew from Wayfarer and we dive deep into questions like:
How to price your services correctly and what are the main issues when you price yourself too low?
How to overcome money blocks and limiting beliefs around pricing?
How to confidently talk about your rates with your clients?
How to increase your prices by improving your client process and experience?
About Abbey’s Journey
Abbey is a brand and web designer, and the owner of Wayfarer Design Studio. Her journey is definitely not ordinary – she went into business right after graduating from college in 2016. As she says, it’s the last thing she expected to do because she was quite young and felt unqualified to start her own business.
But life can be unexpected sometimes and after marrying her husband, they started travelling a lot (moving from country to country once or, sometimes, twice per year) for her husband’s professional basketball career. With all this moving around, getting a traditional job wasn’t easy and that’s how Wayfarer was born – Abbey realised it was her only option if she wanted to pursue her dream, while also being by her husband’s side and support him with his career.
They now live in Porto, Portugal, (at least for now) and are really loving it – the temperatures are definitely more pleasant than some other places they lived at (like Denmark and France) and their dog is definitely enjoying the sea!
PRICING YOURSELF WHEN STARTING OUT
When Abbey was just starting out, she asked her college professor for some advice on how to price her services, and he recommended a starting hourly rate of $25-30/hour – and that’s the advice she followed!
But looking back now, she realises how low her packages were and still can’t believe that this is what she was charging for the amount of work that she was putting in.
And although deep down she knew that she should be increasing her prices, in reality, she was just too scared to charge higher because (a) she felt underqualified and (b) she thought that she was too young to charge more.
Didn’t we all feel this way?
It took her a lot of time to realise that these prices were hurting her business and actually preventing her from attracting the right clients.
It’s actually a business mentor of Abbey’s that truly pushed her and motivated her to raise her prices after a couple of months of running Wayfarer. She told her that an instant clue that you need to raise your prices is if you book 3 or more clients within a short period of time. If people are eager to work with you, this means that you’re in high demand and you can allow yourself to raise your prices.