by Thembe Khumalo
Let’s face it, there are a whole lot of coaches consultants, and other service-based solopreneurs out there who are working for a lot less than what they are worth. Sometimes, it's because you hear so much about how bad the economy is that you try to avoid coming across as lacking empathy, or worse still, arrogant. Years spent in traditional employment can also limit our self-worth because we have pegged our value at whatever our last employer decided it should be. This undervaluation can lead to reluctance and hesitancy to share knowledge, and the pursuit of side hustles.
In a service-based business, our primary goal should be to serve, and positioning ourselves for success is key. It's hard to serve when you are feeling resentful about charging less than you're worth, or anxious about how you're going to pay your bills, or where your next client is going to come from.
Here are three things to consider as you think about your pricing:
1. Acknowledge Your Own High Value
Recognize your unique strengths and validate your worth with a track record of success and testimonials. You might find it useful to actually jot these down so that you can see them in front of you. Remember your skills don't only come from work — they also come from life experiences. So don't discount anything you have lived through that has taught you something. Recognise that no one in the world has your unique combination of skills and experiences.
2. Determine Your Market Value
There are a number of factors to take into account when determining your rates. The first thing is the value you deliver, the transformations you enable, and what value your customers place on that. The more unique and complex a problem you solve, the more people are willing to pay for it. For example, a brain surgeon solves a very special type of medical problem, so she charges more than a general practitioner.
3. Consider the Demand and Supply Factors
You also need to look at the demand for your services. How many people might have this particular type of problem and be willing to pay for it? If the market is huge, chances are you will charge less, because there are likely to be lots of other people solving the same problem. If the market is small, you have to think carefully about how you will reach and convert them to keep your business running. Don’t forget that the market isn't only people in your city or country. The internet gives you access to the whole entire world, so there are almost no limits.
Also look at who else in your market is solving the same problem and what they are charging for those services. That will give you an indication of what people are prepared to pay but should not be the only criteria you use to determine your own price.
A few years ago, I doubled my coaching rates overnight. I had just completed my coaching certification and when I considered the decades that I had put into building my knowledge base, the investment I had made by hiring a coach myself, and the specific type of complex problems that I solved, I knew I should be charging more.
Here’s what happened after that — nothing.
Contrary to my fears, the sun did not fall from the sky. The birds did not stop singing and life carried on pretty much as normal. On the business front, I started to attract more serious, committed clients. I had less random enquiries and wasted less time talking to chancers who were simply curious but had no intention of buying.
The time I saved on casual inquiries allowed me to focus on improving my delivery — learning new skills and researching tools that could help me level up my game and improve the client experience. I found myself serving with enthusiasm and going above and beyond to help the people who were willing to invest in working with me. The people I served reciprocated by taking their coaching sessions and homework seriously because they were committed to getting full value for their investment.
Finally, my brand equity soared, as I became associated with high-value solutions and success. People started to think of me as a serious coach for serious people, and that’s exactly how I want to be perceived!
Ultimately, what you charge comes down to your own conviction about the value you deliver. There is no such thing as a product being too expensive — it simply has to be the right match for the audience. If you are convinced that your services are worth what you charge, it will be much easier to convince everybody else.
Thembe Khumalo is one of Zimbabwe’s leading voices when it comes to brand-building, business growth and personal development. A winner of multiple awards both at home and in the region, she is the founder and Managing Director of Brandbuilder, a high-performance brand strategy firm that helps entrepreneurial leaders and SMEs achieve visibility and growth through comprehensive brand strategy, creative execution and social media content strategies. Known for her clarity and courage, Thembe Khumalo’s leadership track record includes board positions in listed, unlisted and not-for-profit entities. With more than 20 years in the media and communication industry, she delivers a network of high-level relationships across many industries in several African countries. | thembekhumalo.com | www.brandtobuild.co | askus@brandtobuild.co
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