Written from Vide Above Transcript by CHATGPT
One of the biggest concerns I’ve seen from entrepreneurs, especially new ones, is how to price themselves. Some feel bad for charging a certain amount or think they’re not good enough to charge more. If you’re one of them, don’t worry. It happens to all of us. In this blog post, I’ll share some tips on how to price yourself based on my experience and give you some real-life examples that may help you.
Research Your Competition
The first thing you should do, no matter what business you’re in, is to research your competition. Specifically, look for businesses that offer similar products or services in your area or niche. For example, if you’re a real estate photographer in Boise, Idaho, search for “real estate photography Boise” or “real estate photography Idaho” on Google, and see what comes up. Check out their websites, portfolios, pricing pages, and reviews. Take notes of their prices, packages, features, and quality. Don’t be sneaky or unethical, but you may have to contact them directly to get some pricing information that’s not publicly available.
Adjust for Cost of Living and Experience
The pricing you find may vary depending on where you live and work. Cost of living, market demand, and competition can influence the rates. For instance, when I started my photography business in Columbia, South Carolina, the average rate for a real estate shoot was around $100. I decided to low-ball a bit and charge $95 for a standard house. After a few years of gaining experience, improving my skills, and upgrading my equipment, I raised my prices to $125, which was the standard in Beaufort, South Carolina, where I moved to. Now that I live in Los Angeles, where the cost of living and luxury market are much higher, I charge $300 for a real estate shoot. However, I started at around $175 and gradually increased it as I realized I was undervaluing my work.
Calculate Your Hourly Rate
One way to price yourself is to calculate your hourly rate based on the time you spend on a project. For example, if you charge $175 for a real estate shoot that takes you 20 minutes to drive, 11 minutes to shoot, and 45 minutes to edit, your total time is about 1 hour and 16 minutes. Divide your fee by your time, and you get an hourly rate of $137.5, which is not bad for a beginner or a short project. However, you should also consider other factors that affect your pricing, such as your overhead costs, your profit margin, and your value proposition.
Set Goals and Adjust Your Rates
To determine your pricing strategy, you need to set some goals and milestones for your business. How much money do you want to make per month? How many hours do you want to work per week? What types of clients do you want to attract? What is your unique selling proposition? Once you have a clear idea of your goals, you can break them down into smaller, achievable steps, such as raising your prices by 10% every quarter, offering discounts for referrals or repeat business, creating different packages for different budgets and needs, or diversifying your services to cater to a wider audience. Don’t be afraid to adjust your rates if you feel they’re too low or too high. Experiment and learn from your customers’ feedback and behavior.
Buy me a coffee? Support the channel here: https://crafty-architect-4337.ck.page/products/cole-connor-tip-jar