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Thursday
Nov132014

The Simple Guide To Pricing A New Service

It can be super stressful to pick the right price for a new service.

People ask me all the time, “How do you pick your prices?” so in today’s video I’m teaching you my exact pricing process.

This process is so easy (and fun!) that I’ve even done it with entrepreneurial friends of mine, Kylie Patchett and Makenna Johnston while swimming in an infiniti pool in Bali that looked over a ravine. (We aptly called it, “Pool + Pricing”. Don't you love a good alliteration?)

 

Here's what Makenna had to say afterwords:

"Pricing and packaging always feel complicated at first go.  Charge too little?  And you look undervalued.  Charge too much?  And people run for the hills.  But Courtney makes the process easy.  

Her copy centered approach allows you to feel confident in your packages and prices, and to tell your clients why they need this in their life.  You know what you need in your life?  More Courtney."

 

If you’ve ever been frustrated by picking the right price, you’re going to love this week's video.


Click “play” on the video below and I’ll teach you my 4-step pricing process:


 

Some nuggets of wisdom you may want to tweet out:

 

Every entrepreneur needs to know the monetary value of the results her business creates. @CourtRJ 

Pricing should always be value based, not time based. @CourtRJ 

 

Here’s the 4-Step process that I outlined in the video:

Before you start, choose a product or service of yours (or one that you’re creating) to use for the process.


  • In the first quadrant, write down the price that feels right to you based on nothing but your intuiton and gut. Sit with the price for a minute. Try doubling it or adding $100 more.

  • In the second quadrant, add up the actual monetary value of the results you’re creating in the client’s life. Before you tell me that “there’s no monetary value”, you need to know that there is monetary value to everything. How much is it worth to your target client to get the result that they want--to get healthy, have a brand new website, or look great in a custom-designed cocktail dress?

  • In the 3rd quadrant, calculate how much you’d need to make from this service in order to have a good profit or ROI. You’ll need to take into consideration how much time it takes, how many clients you can fit into one day, week, month, year, and how much overhead you have to maintain this service.

  • Finally, in the fourth quadrant, write down the price that satisfies all of the previous three quadrants. The price should feel good, be value-based, and also be enough to make the service viable.

 

 

 

P.S. My friend and mentor, EMMY Award-winning mediapreneur Natalie MacNeil of SheTakesOnTheWorld.com is currently running a game-changing online course.

Her 9-week course, The Conquer Summit, should cost $999 (she told me she's spent more than $100,000 putting it together!) but she’s hosting it for free. Crazypants. On the final day of the course, she's attempting a World Record. If you attend, you get to be a part of it and get a certificate!

I was lucky enough to travel to Bali with Natalie this year and let me tell you, she’s a flipping business genius. You do not want to miss out on this opportunity to soak up her wisdom. (You can still access past sessions if you sign up today!)