How you calculate your pricing rates

How you calculate your pricing rates is vital for your business. Why should that be so? Firstly, it helps you achieve your goals. Secondly, it sends a message to your clients about you and your business. Above all, your pricing is there to make you profit. Moreover, it goes towards building you a sustainable, giving you time, choice, and freedom.

The podcast is part of my mission to help you get closer to your numbers, to appreciate the power of what those numbers can do. Improve your money mindset, help you make more profits, save taxes, and help you have the business you want and deserve.

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Pricing products and services

Pricing products and services share some things in common. For example, purpose, numbers, and psychology. There are also big differences. This episode is about services, a future podcast will talk about pricing your products. Still some great takeaways in this episode, whatever your sell.

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How to choose the right price.

You pricing will be between the ceiling and the floor. The ceiling is the most represents the maximum price that your customer will pay based. When it comes to the floor, that is the minimum you charge customers.

Your business purpose and goals, numbers, and psychology all play their part in How you calculate what to charge for your services. One size doesn’t fit all and you will have a range of prices to suit you and your customers – if you don’t, you should do.

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Your numbers are important.

Firstly, let us look at some key numbers you need to get hold of

How much time do you have available? Your time spent on marketing, accounts and admin needs to be considered. How many weeks will you be working? Lastly, don’t forget your costs and how much profit do you want to make?

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Pricing Calculator

Use our FREE and easy to use online calculator to see How you calculate your pricing rates . Let our calculator take on the heavy lifting of the number crunching. Our beautiful calculator shows you quickly what rates you should charge. It shows you a floor price, and one with your target profit in mind.

Type in your numbers to our calculator. See what the numbers say for your pricing.

Use the sliders to see the effect of changing time and money! We have got you covered with other calculators. For example, profit margin, discounting and break even.

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In This Episode

  • Appreciating that pricing is multi-dimensional.
  • Being aware that you need to know what your purpose and goals are.
  • Understanding how your capacity and availability affect what you charge.
  • Learning about the part that costs and profit play in pricing decisions
  • Tips to share and jargon free talk
  • Developing your own Numbers confidence and decisions
  • Take more control of your numbers to help make you money, survive and thrive.