How I determined what to charge for my services?
Have you ever lost prospective customers because they said you were too expensive? I know I have.
But here is some food for thought? Have you considered how many customers you might have lost because your prices were at their lowest?
When I started my business back in 2011, I used to charge €800 for my services. Ok, in all honesty I did not know what wedding planning was back then. A few years later, clients were spending €4,500+ for my services and my calendar was full for the year.
So how did this happen?
First I calculated my standard outgoings:
- Accountants, lawyers, insurance
- Wedding Staff
- Mobile phone bills, internet connections, online databases, website maintenance
Of course, everyone does that but after all this is sorted and incorporated into your fee, what kind of margin do you leave as your profit, and therefore how do you cost your total service fee?
After a few years of trying to aimlessly re-adjust my prices without really knowing how, I started to think that in order to cost my services I needed to look deeper and instead measure the benefits that my clients were gaining as a result of my services.
* Services are duplicable. Just visit a bunch of your competition’s websites and you will see the same list of services is identical.
However, the benefits each one of us is providing, are not.
Benefits are the things that my clients experience as a result of working with me. When I say "me" I mean each one of you out there struggling to cost your services. Because I’ve worked hard at showcasing my uniqueness, my clients know booking my services is about realizing their dream wedding but also (and sometimes more importantly)—about the benefits. Things like:
- Having a confidant here in Greece who is going to act like their eyes and ears in the whole process.
- Having a person with experience in the industry advise them what to avoid and what to embrace.
- Having a real person next them that makes them comfortable to share even what might seem as irrational concern
- Having a person working for them who shares the same values and interests and who understands theirs in turn and make sure these can be reflected on the planning of their big day.
And much more.
Prospective clients aren’t comparing services on price alone any more. We aren’t supermarkets, my friends. Couples are choosing you because of the benefits they receive, that are tailored on what they value.
So stop focusing on endless lists of services and show off your benefits with confidence because your services are just a small part of booking your dream customer. And in your next Skype call make your prospective client see these benefits in you!
Questions are welcomed friends!