The Easy Way to Price Your Services and Reach Your Sales Goals

Setting financial goals in your business takes a few steps. You need to know how much your business costs, think about the investments that you want to make in your business, and create true sales goals, not just what you want to pay yourself.

You might have a grasp on what your sales goals needs to be. Remember that includes what you want to pay yourself, an estimate of the taxes that you’re going to need to pay, and the average monthly expenses that it takes to run your business, as well as the average investments that you want to make this year.

Now that we know what your sales goals are we need to think about how we are going to meet that goal. Now, what do we do in order to make sure that we have a plan to meet that goal? That’s what we’re going to go over today.

The first step is to jot down all of the different packages, products, or services that you have in your business and what you charge for them.

Go ahead and jot that down on a list. For some of you, this will be really easy because you only have a few. Some of you have a lot of things and then some of you might have all custom packages. I’m just going to speak on that really quickly and just take the average of what a low, medium, and high package would be. For example, if you’re a web designer and you customize all of your websites, but you have an average of $1,000 for one page or $3,500 for a few pages and then $10,000 for a really high-end custom site. You just put those averages in as we play around with these numbers because you’ll need something just to start as a base. Go ahead and put the average low, medium, and high. Then once you do this, you can start to play around with how many of each of those you would need to sell and what combination of them would help meet the goal.

Let spreadsheets do the math for you so it doesn’t get too mathy, but this really helps you to see how many digital products you need to sell in order to make up just one of the packages of your service and vice versa. You might see that digital products are just a little extra bonus if you sell several medium or lower-end packages. It helps you to see all of the possibilities of what you need in order to hit that goal.

Once you have a combination or two or three or several that seem realistic, I want you to step back and have you ask yourself these questions. 

Can you RAVE about this combo?

RAVE stands for, R is it realistic? Could you even deliver this many products or services to this many clients? Let’s say one of the combinations is you need to sell 10,000 of your digital products to meet your goal. And you’ve only ever sold five in a month. Well, that might not be realistic to deliver, right? So that is probably not the right combination as a goal to start. You need to rework your package.

This can bring to light that maybe you have too many clients that you would need to work with. Maybe you need 25 people in your membership and you can really only serve five at once in the way that you want to, or the customizations that you have included. With this method, when you can see the combination of your products and services and the quantity that it takes to hit that goal it really helps you to take a step back and say is my time being valued here? Do I even have the capacity to deliver on this sale if I actually go through with it?

Are you comfortable in general with the average of that price?

The A in RAVE stands for the average dollar per hour. My question to you here is, are you comfortable if you were to add all of the hours that it takes to deliver that product or service?

This isn’t always the best benchmark, but it is a good thing to think about, especially as you’re creating your offers. You want to think about how much is the prep time? How much is the actual product or service that I’m delivering? And then is there any follow up or additional things?

Some people may even want to include the hours spent marketing or on discovery calls or sending proposals. You know, all of those things take up time and so in some ways, those should be considered when you start to price your products or services.

That is the next question to ask yourself. Am I okay with the average dollar per hour that I’m making on this package?

Is your value reflected?

The V in RAVE is value. Does your expertise and your experience pass the gut check? Does it feel right that this reflects my expertise and my experience?

You know, if you’re just starting out, then that might be on the lower end and that’s okay until you build that confidence. But if you do have the experience, then you also need to own that and really make sure that your pricing reflects that expertise and experience. I want you to do a gut check on, does this reflect the right amount of value?

Is it equivalent to your competition?

The E in Rave is equivalent. Now, I don’t always recommend that you compare everything to your competition. You are unique, your experiences and expertise are different from your competition.

I do think that the market will tell you an average price range. If you’re way higher or way lower, you may just want to consider that as you’re pricing your services. 

So remember, do you RAVE about your pricing and packages? Is it realistic? Are you comfortable with the average dollar amount per hour? Are you reflecting the value that you’re bringing? And is it equivalent or comparable to your competition?

My hope is that you’ve gained so much value from this and are confident not only how to create sales goals but also how to reach it.

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