To keep giving you relevant and timely content, we update our most popular posts. This article was last updated in May 2021.
There’s one question that every business owner, no matter how seasoned, has to grapple with:
If you’re like most of the one-on-one service providers I work with, your goal is to charge premium prices for your offers.
Which makes sense.
When you’re charging premium prices, you’re able to quit your day job, support yourself (and your family) with your business, and work and live on your terms.
This is exactly what I want for you, too.
Of course, simply charging premium prices it’s NOT as straightforward as you think—especially because you’re someone with integrity.
You can’t simply graduate from coach training, charge high prices, and get a flood of clients to instantly hire you.
Unfortunately, this outdated advice is having people jump to premium pricing too fast.
When they’re brand new, it stops them from ever gaining traction. When they’re more seasoned, it slows down their business (or worse, brings it to a screeching halt).
So if you’ve been told to charge premium prices but it’s not working for you, OR if you want to charge more without having it immediately backfire, keep reading.
I’ll tell you what needs to happen so you make the leap successfully.
You must know this: It’s not about mindset
Before I tell you the reasons charging premium prices isn’t working for you and how to fix it, I have to address the biggest myth about premium pricing I see out there:
MINDSET.
Too many people get sucked into the idea that “it’s all about the money mindset.”
Don’t get me wrong; I’m a HUGE believer in the importance of managing your mindset and working through limiting beliefs. It’s something I personally practice on a regular basis.
But the truth is, charging premium prices isn’t about having the right mindset, per se.
Instead, seeing the real reasons things aren’t working—and knowing how to turn them around—can often unstick the issue of pricing altogether.
Because when you know and can confidently articulate your value…
When you can write compelling copy and host a consult that converts…
When you can provide stellar results to clients…
Your head is automatically in line.
Then, BAM! Just by doing the practical work, you’ve got your mindset right.
(I love when it’s “that easy.” ← That’s what my clients say once I walk them through the process for raising their rates the right way.)
The problem with premium prices
Charging premium prices is a great goal to work toward.
With most of my clients, there comes a time when I gently nudge them (or overtly push them!) to take their offers to the next level and charge appropriately.
But successfully making the leap to premium pricing requires the right combination of timing, experience, and skills.
That’s why I’m sharing the most popular reasons charging premium rates could backfire on you AND how to work your way to a place where you can confidently charge more for your offers.
Reason #1: You don’t have enough experience working with clients or haven’t delivered strong enough results (yet)
Premium prices are appropriate when you can provide premium results. If you’ve only worked with a handful of paying clients or a few people for free, you’re not ready to charge premium prices.
Click to TweetPremium prices are appropriate when you can provide premium results.Fix-It Tip #1: Keep honing your skills and gaining more experience working with clients. The math is pretty simple: The more people you work with, the better you’ll be at what you do, the better results your clients will get, and the more you’ll easily be able to charge higher rates.
Reason #2: You don’t write strong enough copy
If you’re stuck in the Jargon Trap and people don’t understand what you do, they won’t hire you!
And if you’re not able to communicate your value or the results you help clients achieve, prospects won’t connect the dots between what you offer and what you charge.
You must know how to articulate who and how you help, no exceptions.
Fix-It Tip #2: Use your clients’ language to prove your value. Ask yourself, “Would my clients use those exact words?” If the answer is no, rewrite your copy so that it reflects what your clients would actually say.
Also, remember to focus on the benefits of what you sell, rather than the process itself. Your clients are paying for results, so be sure you spell those out clearly, in a way your prospects would understand.
Reason #3: You’re still comparing yourself to everyone else and not setting the vision and following the course for YOU and YOUR biz
Adjusting your packages or raising your prices to match your peers or competitors isn’t a smart business move. Instead of charting your own course, you’re trying to fit yourself into a business model that doesn’t reflect your skills.
Fix-It Tip #3: Stop snooping around your competitors’ websites! Stay on your side of the fence, and continue to refine your skills and offers.
Once you’ve proven that you deliver great results and you can confidently communicate those results, you’ll be able to raise your rates without batting an eye.
Reason #4: You aren’t stepping into an expert or leadership role with your clients
This is a mistake that many business owners—new and experienced—make all the time. Simply put, their offers are freeform and lack a clear structure.
This happens when you and the client haven’t established a clear goal or objective for your work together, and you, as the expert, haven’t set a solid course to achieve that goal.
Instead, you’re showing up to talk about whatever the client needs that day, which is like letting them lead instead of you stepping up as the leader in the relationship.
It’s your job as a premium service provider to chart the course and keep your client on track to reaching her goals. This is how you ensure they reach their goals and get stellar results.
Fix-It Tip #4: Make sure your work with your clients has a defined structure, so you and your client clearly understand the goal in working together and how you’re going to achieve that goal.
You should be able to say, “In X months, you’ll have accomplished [this result], and here’s how I’m going to get you there…”
Reason #5: Your materials aren’t top-notch
Wanting to keep costs down in your business is understandable, but nothing screams amateur like poorly designed worksheets sprinkled with typos.
Put yourself in your clients’ shoes. Can you imagine paying premium prices for sub-par materials?
Fix-It Tip #5: Your first inclination might be to hire a professional editor or designer to make your materials stand out above the rest. That’s one option, but it’s not a requirement.
Simply taking extra time to make your materials clean, clear, professional-looking, and typo-free can go a long way to proving your worth. The materials you provide to clients are part of their overall experience with you. Set a high standard for your materials even if you do it yourself.
(FYI, I did my client docs myself for years in a simple word processor. It’s a totally legit way to go, as long as you keep them clean and pro.)
Reason #6: You don’t have sales skills
There’s nothing worse than being on the phone with a prospective client and feeling your heart sink when they say they can’t afford to work with you.
If you’re unable to effectively communicate what you do and respond to their concerns, then it’s important to sharpen your consult and follow-up skills to justify your prices.
Fix-It Tip #6: Learn how to speak effectively about what you do and have a track record of converting consults into clients. Create a systemized consultation process, including a method for following up with warm leads.
Here’s the good news: My friend Kendrick Shope taught me that 90% of the time, it’s not that they can’t afford you; it’s that YOU haven’t proven that you’ll get them the results that are in line with what you’re charging.
So if you work on those consult skills, you can massively increase your chances of selling at higher prices.
I see big success here for both my Make It Work Online and Make 10k clients. A little practice with my proven consult script and BAM!, they’re closing clients left and right!
Reason #7: You’re worrying about “what people will pay”
Back away from the calculator.
When you play the guessing game and try to figure out what people will pay, you’re doing yourself and your clients a HUGE disservice.
What your clients do with their money isn’t your business, and you’ll never be able to guess what they can or can’t afford.
Plus, look back at #4, and remember, it’s not usually about the price! Most people are using “I can’t afford it” as an easy out instead of saying “I don’t believe the value of your offer.”
Click to TweetThinking about raising your rates? Most prospects will say “I can’t afford it” instead of saying “I don’t believe the value of your offer.”Fix-It Tip #7: Your priority should be on the awesome results you can promise to your clients; then you can determine what those results are worth.
Combine that with great copywriting, strong sales skills, and everything else I’m sharing here because once you have the right combination dialed in, people will pay!
My Personal Recommendation for YouThe Lowest Common Denominator Approach to Price Your Services with ConfidenceThe right time to charge premium prices
This post isn’t meant to discourage you from charging premium pricing. My goal is just the opposite.
Charging premium prices is a natural part of scaling your business, and more than anything, I want you to be successful when you make the jump.
If you can confidently say that you don’t make any of the mistakes listed above, please please please, raise your rates ASAP. (Here’s how to tell your clients you’re doing so.)
However, if you’re just starting out, I hope it relieves you to know that you don’t have to charge premium prices right now, no matter what the other business coaches are telling you.
Plus, remember Kim’s story where she said that shooting too high was actually holding her back. Don’t let that be you.
So if you’re just starting out or don’t feel ready to charge high prices for big packages, begin by creating a bite-size offer at an entry-level price that allows people to get to know your services (and allows you to refine your skills).
It’s what I have most of my Make It Work Online clients do, as it builds their confidence, gives them practice delivering stellar results to clients, and helps them strengthen their copywriting and sales skills without feeling any pressure to justify high prices.
My Personal Recommendation for YouHow to Double Your Rates with IntegrityWhere do your prices stand?
I’d love to hear about your wins and challenges when it comes to pricing your offers.
How do you feel about your current rates?
Have you ever raised your prices? How did it go?
What questions do you have about your prices?
Leave a comment below and ask questions if you have them. I truly love nothing more than coaching you to take action and build a thriving business!
As a startup photographer, this article was completely relevent to me. It is difficult to know what to charge and when. I’ve underpriced and I’ve overpriced. All anybody seems to want is free or discounted services. Right now I feel my biggest fault is not knowing how to advertise or market to the right clientele.
I understand — it can be hard to know what to charge when you’re first starting out.
You said that one of your challenges is the people want things for free. That’s an indicator of two things: 1 – that you haven’t found your right audience yet (because your right people will pay!) and 2 – you haven’t yet done a good enough job articulating the value of your offer. Check out these two articles to see what I mean:
https://jennyshih.com/2013/02/why-you-shouldnt-sell-coaching-and-what-to-sell-instead/
https://jennyshih.com/2015/06/how-to-charge-what-youre-worth/
Take a read and let me know if that helps or what other questions you have. I’m here to help!
I learned about the value of a proper photographer when I had multiple amateur photographer friends take photos for us. We got great photos but the real huge value we would have gotten from hiring someone is them culling the photos and putting together the best ones in an order that tells the story so we could easily share it with people. As it was we had 700 photos we had to sort. We didn’t ever look at them or show them to anyone cause it was too overwhelming. Finally 10 years later we paid someone to sort and cull them for us. 10 years. Sheesh
This article was very helpful to me. I am just starting to build my personal brand as a sports nutritionist and I keep getting hung up on what everyone else is charging.
Yes! Stop worrying about other people and focus on your own biz to start. It will help a ton!!
What a great article! What do you consider to be “premium pricing”? I just officially started my health coaching biz 4 months ago and I’m charging $995 for 3 months. I’m being told my prices are too low.
That’s a great question, Nancy. The reason I didn’t define premium pricing with a number is that it’s totally relative to each person. What’s “premium” to you could be different for me , and it’s about reaching to that next level in pricing from where you are (wherever that is!).
I’d love to help you with your scenario. I have a few questions for you:
Who is telling you your prices are low?
Do you have a full client load, and how many clients have you worked with so far at that price?
How many private sessions are included in those three months?
Fill me in, and we’ll take it from there. I’m happy to help!
Thanks Jenny! I have heard it from other coaches that if you don’t charge at least $3,000 people don’t take you seriously but my coach says it has to be in line with what you feel and what you believe in and are comfortable with.
No clients as of yet with this target market and none at that price. Previous client was $100 per month when I was out of school.
I’m doing a 3 month program with 12, 1:1 calls.
The idea that you have to charge at least $3k to be taken seriously is such bullshit! (Sorry for the blunt statement but it’s true!) I completely agree with your coach that it has to be in line with you and your value.
I always have clients who are new to business start with very low priced offers, like $99 and $199, and only increase their prices after their clients’ results prove that they’re worth more.
My most successful clients started there and worked themselves up to charging thousands of dollars. I believe very strongly in creating offers where you can deliver stellar results of your clients and learn from the experience. When my clients do this, they naturally grow their prices as their competence, skills, experience, and client results — nothing forced or arbitrary.
In fact, if a client ever says that they’re worried what someone will think about their prices (whether too high or too low), I immediately tell them to stop worrying about what people will think and focus on the value they provide for clients and how to articulate that value. Because that’s all that matters.
For your situation, if you’re relatively new to what you do, start by creating and selling a bite-sized offer (https://www.facebook.com/jennyshihpage/videos/953576294729852/) and price it low. Use it to get experience and build a name for yourself. Then slowly increase the amount of time / sessions you work with clients and the results you provide as you gain experience, skills, competence, and client results.
You want to put out an offer focused on RESULTS that you’re confident you can deliver for any client who shows up. Then price it at something that you feel good about.
There’s a whole lot more to this and a big part of what I do with clients in Make It Work Online. The step-by-step, build your own confidence as you build your business is a HUGE contributor to why my MIWO clients are so successful.
Awesome response, Jenny! Totally makes sense. I will check out the links and start thinking of other ways to get myself out there 🙂
One important item to consider in “what to charge” is fully understanding your overhead costs. I find that people attempt to figure out “what to charge” without fully understanding their costs and wonder why they are not profitable. I have been an entrepreneur for 13 years (3 separate companies). When anyone asks me about being an entrepreneur one of the first questions I ask is how long can you go without a paycheck? It takes a couple of years for start-ups to be profitable. The number one reason most businesses don’t succeed? Lack of capital, not lack of ideas or initiative.
One of the things I love about teaching online, service-based businesses is that the overhead to start is low! Website hosting, email service, and… that’s it!
And all clients start out differently in terms of salary. These “heart-centered businesses” I help clients start aren’t like most large-scale, capital-infused startups that we hear about online. Instead, we’re starting it from our hard work only. Sure, some quit their jobs and start at zero and save up to have that startup cushion (that was me!). But most of my clients build their businesses on the side while they work full-time or part-time jobs. This is great because it takes that “paycheck pressure” off of their business as they get started.
Overall, you’re right that there is a lot to consider from a financial perspective when starting a business. This blog post here is only touching on one aspect of pricing, which is one micro aspect of the whole financial picture of a business.
Articulating my value is a challenge for me. Clients that were lonely and felt like they didn’t matter say they felt “loved” by me..they felt the “warmth” from me..I know these things are important in attempting to describe how it feels to work with me, but it feels weird to say those things in my copy. However your blog has reframed this..perhaps that’s an outstanding value if I can find a way to let potential clients know that while they’re getting great results, they’ll feel this way too..
Thanks for bringing up such a great point!
I totally understand the challenge you’re describing, Jessamina. It’s not easy to articulate the value we provide for clients, especially if it’s more subtle work like what you do.
One thing that you need to do is to separate what people get or realize they get AFTER they work with you (like the love, warmth) versus what they wanted BEFORE they worked with you. It’s the BEFORE language that sells them on hiring you (or as you said, articulates the value).
I’ll give you a quick example. In my Make It Work Online program, one of the things that my most successful clients say is that they leave feeling “like the boss of their business.” Or others feel “empowered to be in charge of their businesses and their lives like never before.”
BUT! Although I LOVE those things, it’s not how I market the program, because before they work with me, they aren’t asking “to feel like the boss” or “to feel empowered.” Instead, they’re asking, “How do I find clients? How do I create a consistent income in my business?” So that’s what I market. They get those things, of course. And a whole lot more — things they don’t even know they’ll get until they work with me. But the marketing (articulating the value) must focus on what people are asking BEFORE they work with me — because that’s all they know.
This is true for all types of businesses, that they get more than they realize they even want.
So what language did your favorite clients use to describe their challenges and their reasons for wanting to work with you BEFORE they actually worked with you? Those are the words you want to use to articulate your value.
By the way, have you watched the video training I posted on Monday? I talk about this idea in a slightly different way in that video, and it might help you think through it more. You can sign up here: jennyshih.com/miwo
And ff you have more questions about what I just wrote here, post them! I’d love to help however I can.
This is super helpful – especially the comparison trap. I see the premium prices business 2 business folks offer but don’t feel that is relevant for my audience as a health coach and when tried increasing prices it has sometimes felt like it has failed .
About to launch a membership offer after people asking for it and am again at that conundrum – how to price it and do I start out premium from outset or lower and increase with demand??
I need a pricing genie!!
There’s so much to pricing, so it’s okay it if feels a little maddening!
Check out these articles on pricing and see what insights come to mind. There are a lot of factors to consider!
https://jennyshih.com/2013/05/steal-this-my-perfect-pricing-strategy/
https://jennyshih.com/2013/05/5-tried-and-true-signs-its-time-to-raise-your-rates/
https://jennyshih.com/2016/04/how-to-double-your-rates-with-integrity/
Then pop back here (or comment in those posts) and tell me what other questions are coming up. I’m happy to help!
Jenny, this was SUCH a great and helpful read. I’m in my fourth year of business and after having taken some time off for personal reasons last summer and then did a rebrand and big update on my website, I did increase my prices somewhat. Between all of that, business has slowed down– partly from not being able to get my momentum back, but I’ve also wondered about the price increases.
I have built up my experience and been though the comparison game ad infinitum at this point. What struck me here were the ideas that 1) my copy may still be lacking in clearly showing the value I provide and in the client’s words, and 2) that the descriptions of my offerings may lack the structure that people crave to set up a safe expectation. These are great insights!
Lastly, I really like thinking of the “I can’t afford it” answer as “I don’t believe you”, because it makes me rethink how I am valuing myself and selling what I do. Most of this seems to point back to getting back into my copy, my words, and my communication and thinking about what needs changing. I feel like I’ve looked at that for hundreds of hours from all sides, but hopefully these insights will help something shift.
Thank you very much! 🙂
I am SO impressed with your own self-assessment here, Rachael. BRAVO! To realize that comparison-pricing isn’t working PLUS to notice that you might need to better articulate value and describe your offers — nice job! Too many women skip over and think, “yeah, yeah, I know…” without really seeing how much those things mater. Well done.
I love the “I can’t afford it” = “I don’t believe you” also. It’s sooo good at helping us realize that it’s OUR job to prove our worth, not the clients’ job to believe us!
I’m so glad you got so much from this article, and I hope you take those steps you outline, because they will help so much!
Thanks, Jenny! I have returned to this article several times over the last few days as I’m rolling out a new offering. I’ve had so much mental up and down about pricing on this! One thing that really helped was the idea of being really clear about what to expect and what value you’ll receive for the offer. I used that to create what I feel is a really strong webpage for my offer– so I’m excited about that and it’s helping me feel more sure about my pricing choices.
Do you have any thoughts on discounts and special pricing for VIP situations? I’m having a harder time applying the general rules there, because they already have a personal idea of the value but they’ve also already done the course, which is annual (but a little different each time). I want to offer them a special rate as both a Thank You AND to increase enrollment, but I’m struggling with how to think about pricing for a group like that.
I love what an action-taker and follow-through-er you are!
I’m generally not a fan of discounts. Instead, I prefer to add value to offers to make it a “no brainer.” (That’s how I feel about all of my programs — like what the clients get is a steal for the investment.)
For my more advanced clients (the women in my Make $10k program), as I coach them through raising their rates, I give them permission to extend a rate break to past clients for similar work. It helps my clients get on board with their own new prices and gives the right energy to the offers. Another thing you can do, which I’ve also done, is charge slightly less for the first few clients and then as I get comfortable, up the rates.
That said, some people do well with “early bird discounts” and if that’s something you like then go for it. There are really no rules — only what feels true to you. (Done for positive, not scared or needy reasons. Energy is important!)
I hope this helps!
Wow, thanks for the speedy reply!
The first year I did this course it was free for everyone who opted in. I got lots of feedback and re-crafted it. I offered it again the next year and I charged a fairly low price, but it was free (again) for those who had taken it the first year (I know, pretty generous!).
This is my third year. I have settled on some new prices that are quite a bit higher than that first round of pricing. It’s not free for Anyone this year, but there is an early bird rate. AND, I was going to send a small coupon to those first year peeps as a thank you for joining me again– I guess I want to acknowledge that I’m asking them to pay this year and give them some extra incentive to still sign up.
Goodness, it’s great to be called an action-taker and follow-through-er, since that’s not something I’ve ever been a natural at. It’s come with a lot of hard work (still working!) over the last four years of having my business– Thank you and thanks for your reply! 🙂
Oh, and I didn’t see anywhere on your site that you offer any private work. Is all of your coaching via your collection of programs on the Work With Me page?
Your plan for the next round of your program sounds perfect!
As far as private clients, I am not currently offering private work for clients unless they make over six figures — because I refuse to compromise integrity and client results.
The way my programs are structured mean that clients get BETTER results in my programs than if they were to work with me privately (I have the group magic formula and attract the most amazing clients). This means it would be ridiculous for me to offer something that would get them sub-par results and cost way more money!
My successful clients will all tell you that there’s more power in the group (both MIWO and M10k) — even more than they realized!
Love it! Your work is fantastic; I’ve really enjoyed getting to put many of your insights to work. Thank you so much!
Awesome! My pleasure. 🙂 Feel free to ask away any time on any post. I love helping go-getters!
Thanks so much for these articles! Starting out now working on design/marketing/event planning in a more full time role rather than on the side in the past is very hard to justify what to charge. Look forward to more tips from you!
Happy to help, Michele! Definitely look at how you prove your value, like what Rachael was talking about. That’s one of the biggest keys to charging great prices. Best of luck, and I look forward to seeing you here again soon!
Another fantastic article, Jenny! I’m currently restructuring my pricing and adding a new offer after being very hands-on with clients- so this was a timely + helpful lesson now and will refer back to in the future 😉
Awesome, Kristy! I know you have all the tools to implement these upleveled prices — consult scripts, follow up emails, the whole shebang — so you can knock it out of the park!
Hi Jenny
This came at a perfect time for me. I have been trying to figure out what to start at and it was suggested to start my coaching package at $600 however I started at $500. I have spoke with 4 different women and all really wanted to work with me however the cost was too much for them. So basically I’m not working with anyone.
How can I go back and reduce my rates now and offer them a special price?
Does that look bad to somehow say, I would love to offer you a special rate of $250?
I would rather work with these women at $250 then not work with anyone.
What are your thoughts on offering a special rate?
Great question! The truth is that 90% of the time, when someone says, “I can’t afford it” what they really mean is “I’m not totally sold on the value of this program at the price you’re asking.”
This means that the solution isn’t to lower the price or offer a discount, but to work on improving the value you offer in your package, strengthening your consult skills, and mastering the fine art of follow up. These three things will change your business forever!!
Check out some of the proven, powerful templates I have in the shop: Offers, Consults, and Follow-ups That Convert. http://jennyshih.com/products
The good news: If you work on these, you’ll be able to charge more for your work sooner than you think!
Thank you for this article, there’re so many things I’ve been rethinking. One is – a smaller package which I was selling last week. The result was striving to a zero. Only 2 of my now-clients were interested in the package. For the cold audience (which I consider to be in my mail-list) this package was not interesting what so ever. So I came to a conclusion that I didnt’t enough warm up the audience.