Most service businesses set their prices using a mixture of guesswork, what they charged last year and what they think clients will tolerate. That’s usually how people end up doing very good work for far too little money.
In this video, I explain a fairly crude but useful way of working out what you should actually be charging.
We start with the number most people ignore: what it genuinely costs you to take the work on once you include your salary, tax, insurance, software, travel and all the other small expenses that quietly add up over a year.
Then we look at the upper end of your market, why your competitors’ prices are useful when you’re establishing yourself but eventually become irrelevant, and how to test a new price properly rather than asking people what they’d theoretically be willing to pay.
I also cover why winning every piece of work can be a warning that you’re too cheap, what a rejection actually tells you, how anchoring keeps businesses stuck at old prices, and how to move existing clients onto higher fees without turning the whole thing into a negotiation.
I’ve also created a calculator to help you work out your own minimum viable fee. You can find it here:
https://www.luxuryacademy.co.uk/cost-calculator/
If you sell consulting, training, advisory work or another professional service, this should at least give you a much better idea of the figure you should never be going below.
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How to Set Your Prices as a Luxury Service Provider Without Guessing
