How Pricing Packages Will Help Increase Your Business [Day 2 of the 12 days of business challenge]
About 3 years ago I hit a wall. I wanted to be taken seriously by potential clients. I also wanted to change my target market from everybody, to women with creative, home-based businesses. I had no idea how to do that!
That is when I started looking online for a mentor. I needed help.
I found Ilise Benun of The Marketing Mentor and scraped together the very little money I had so I could hire her to help me. It was the first time that I invested any kind of money into self-improvement. What a good decision it was, but it was hard. Starting from scratch always is!
The moment of truth came when we worked on the topic of pricing. Up until that point, I was charging hourly for my branding and design services. The problem was, my client and I would always have to break through that glass ceiling, so to speak. There was always a limit, but I would never ask them what their budget was, because the type of clients I was getting, didn't have one! So it always came to a point that we could only go so far. Package pricing prevents this stress.
Ilise helped me discover the world of package pricing, however, that was just the tip of the iceberg. I realized that I was so new to the world of online businesses, that I had to change how I designed. I was used to designing for print. Nooooo, not anymore! And so I started changing. It worked! I started attracting my perfect client!
I am telling you this little background story, because even as I write this, I see how far I have come. I also see that I moved from mentor to mentor as I moved from step to step. Then I started to look to other designers. They all had package pricing and clear guidelines that went with each one. And one day it clicked! If you want to run a business and not have a hobby, doing the work and planning up front, saves you quite a bit of headaches later. PERIOD. END OF STORY.
Why Package Pricing?
- It sets boundaries.
- You present yourself as a professional.
- People like being able to choose from packages.
- You are prepared when the project starts and don't leave anything to chance. It is spelled out already.
- It builds your confidence and helps you get the business that might otherwise go to your competition, because you were prepared.
- People want to hire someone that will walk them through the process. This attention to detail will make an impression, because this hand holding started at the very beginning. It gains their trust.
How to Create Your Own
- If you are a freelance graphic designer, content writer or social media marketer, figure out what you would charge by the hour and then calculate how much time it will take you to complete. Multiply the hours by your hourly rate. This will give you an idea of what to charge and how much time you will put into it. This works best for those that provide services over products. Products are easier to price, so I am focusing on services in this post.
- Compile a list of what is included. Start with pricing for the largest bundle (it's called eating the alien...do the hardest one first!)
•List all that is included, such as design or content writing specifics.
•Include the fact that the deposit to hold their spot in your design calendar isn't refundable.
•State the timeline. As an example, does this package take 4-6 weeks or just 2.
•What are the payment details? Have the deposit amount listed and when it is due. Figure out when the last or next payment is due and list that.
- Find a template to design, that matches your brand and is downloadable from your website. Create a "services" page in the navigation of your website and outline your steps and packages there. Be clear and concise. Your potential clients will thank you with their business!
I promise you, that when you list everything that is included and it is designed to be easy on the eyes and easy to follow, you will see results. So, as you can see, finding out who you want to target is the first step. The second step is planning your pricing, creating package pricing and designing a beautifully branded, downloadable PDF. I can't wait to share step three with you tomorrow! You are setting the stage for a profitable business. Get one of your hands ready, because you will be doing some patting-yourself-on-the-back-exercises very soon! Great job!
Please share your successes in the comments below! We want to cheer each other on! What has been the easiest or the hardest thing for you so far?