Jake Setterlun explains how to price services systematically instead of guessing. Consider three things: whether you've delivered work before, what competitors charge, and the value you provide relative to what your client can afford. He uses HVAC and real estate examples to show how to justify higher prices.
So going to pricing, there's a, there's a lot of different factors. One of them is definitely like, what's the result that I'm gonna get people? Um, and I ask, you know, do you need to make money ASAP? And then, you know, have you delivered? Because there's, you know, different ways of navigating that. If you haven't delivered, you've never sold anybody, I would tell you to collect money after you deliver. So set something up for them because it's easier for people that have never done that to, to go out there and just be like, hey, I'm gonna, I'm gonna work and then I'll charge you after. It sounds like you're, you're in a pretty good situation then. I would look at what your competitors are, are charging for sure. If you come in and you're like, hey, I'm gonna charge it, let's just say it's $6,000 for HVAC and a competitor's charging $1,000. How do I make up that $5K spread if I want to charge $6K? Right. Is it a better solution, more value, et cetera? So What competitors are charging, the value that you're delivering. And then really also, this is why like niching down does help. Like what is an average ideal client making? Because that also, you know, is a factor too, but it's kind of all 3 of those things mixed in. You know, real— take real estate as an example. In a perfect world, if we were able to charge for, you know, what does one person make selling one home? We would have been selling our services for $15,000, $20,000. But a real estate agent is not going to pay that. So it's also kind of, again, taking the full scope, the 3 things that I mentioned, tying them all in and then coming to a price that makes sense, but you're also valuable and it seems like a good deal for them. But that doesn't always mean cheap.
