How to Price Your Services

Pricing is one of the most difficult “skills” you’ll master in business, but most people spend their lives guessing... They figure out what they think the client wants to pay, then try to make the numbers work. That's not pricing… That's just hoping you get paid what they THINK you’re worth instead of what you’re actually worth. Real pricing starts with understanding your actual costs. Not just materials and labor… Everything. Your truck payment, insurance, office rent, and the time you spend estimating jobs you don't win. Your accountant, your lawyer, the equipment sitting in your yard that you're still paying for. The cost of carrying receivables when clients pay late. The cost of warranty calls and callbacks. Most contractors have no idea what it actually costs them to be in business. They know what they pay their guys and what materials cost, and they add some percentage on top. Then they wonder why they're working harder every year but not getting ahead. You can't build a sustainable business on guesswork. You need to know your numbers. What does it cost you per hour to keep your doors open, even when no one's working? What's your real overhead, not just the obvious stuff? How much profit do you need to reinvest in equipment, training, and growth? Once you know these numbers, pricing becomes simple. You calculate what the job actually costs, add your profit margin, and present it with confidence. If they say it's too expensive, you don't negotiate your margin away. You either find ways to reduce scope or you walk away. Stop guessing what to charge. Start knowing what your work is worth.

The most common pricing mistake I see: founders pick a number out of thin air and hope it works. $9/month because "that's what Spotify charges." $29/month because "that seems reasonable." $0 because "we need users first." All wrong. Here's a better approach: Start with the problem cost, not the product cost. How much does your customer currently spend — in money, time, or pain — dealing with the problem your product solves? If a construction PM wastes 5 hours/week on manual scheduling, that's $200/week in their loaded salary. Your $50/month tool saves them $800/month. That's a no-brainer. If a freelancer spends 2 hours/week chasing invoices, that's $100/week in billable time. Your $25/month tool saves them $400/month. Price based on the value of the problem, not the cost of the solution. Three pricing rules for early-stage founders: 1. Never free. Free attracts the wrong users and gives you zero data about willingness to pay. Charge something — even $1 — to separate real demand from curiosity. 2. Price higher than comfortable. You can always lower prices. Raising them is much harder. Start where you're slightly uncomfortable and see what happens. 3. Let the market tell you. If everyone says yes immediately, you're too cheap. If nobody converts, test the offer before dropping the price — the problem might not be price at all. The 100X Founder has a pricing advantage: domain expertise means they already know what the customer pays for alternatives. That's competitive intelligence that takes generalists months to gather. What does your customer currently pay to solve (or endure) the problem you're targeting?

You’re probably charging too little. Here's the way to know for sure: At least 20–30% of your potential customers should push back on price. Pushback is a signal, not a problem. If there’s no resistance, you’re not testing the limits. Friction means you’re no longer underpricing your value. Here’s what I’ve learned from years helping founders grow from zero to tens of millions in ARR: 1. Value accumulation often outpaces price increases. You probably added more features, more reliability, more team strength — but your pricing stayed the same.Many founders regret not raising prices early. Delaying price increases costs you. 2. You can’t scale on scraps. Charging too little undercuts your ability to pay your team, invest in product, scale support, and absorb mistakes. Raising prices gives you breathing room. 3. Don’t be afraid to raise prices for current customers If you’ve genuinely added value for existing customers, then your price should reflect that. Some of your existing customers will leave. But most will stay. And the gain in revenue + confidence often dwarfs the loss. So what to do: - Benchmark aggressively: see what competitors charge, what perceived value is. - Communicate value clearly: show what extra your product/service brings now vs when price was lower. - Be brave with existing customers: offer options, explain why, grandfather if needed. Entrepreneurs almost always underprice. They’re worried about objections, worried about rejection, worried they’ll lose deals. That fear pushes price down. But the consequence is far worse: margins squeezed, growth limited, team stretched thin. Stand tall. Show value. Price accordingly.

One of the biggest mistakes you can make as a global Nigerian freelancer is thinking in Naira. When I first started freelancing, I used to charge based on how much I felt something was worth not based on the actual value I was offering. I’d say things like, "Ah, $50 is a lot in Naira. Let me not overcharge them." Meanwhile, the client I was trying to “help” was probably paying someone else $500 for the same work. The aha moment for me was when a foreign client paid me x5 of what I charged cause he liked my work and told me I was charging too little lol. That’s when I knew I had to stop pricing like a Nigerian trying to survive, and start pricing like someone who brings value, no matter where they live. So if you’re a freelancer in Nigeria with global clients (or who wants), here’s how to price smart: ✅ 1. Stop converting USD to Naira in your head If you keep thinking, “$100 is ₦150,000 oh!”, you’ll end up undercharging. The truth is: people abroad don’t think like that. They’re comparing your rate with other global freelancers, not your local cost of living. So price in dollars, based on the value you’re bringing , not your location. ✅ 2. Create different packages (I was a little late💀) Not every client has the same budget, & that’s fine. Create options: •Tier one gets the basic package •Tier two gets the mid-tier •Tier three gets premium That way, you can confidently say, “Here are your options,” instead of struggling to hack one “safe” price. ✅ 3. Price based on results, and effort—not effort alone. Don’t just say: “I’ll write 5 posts in a month.” Say: “I’ll extensively research into your industry and prepare 5 optimally written posts that help you build consistency and attract more of your target audience online over the next 30 days.” The more outcome-focused your offer sounds, the more valuable you become in the client’s eyes. ✅ 4. Say your price with your full chest If you quote and then immediately explain or apologize, they’ll smell the uncertainty. Instead, be calm and clear: “This project starts at $750. I can explain what that covers.” Say it like you’re ordering food, not begging for approval. ✅ 5. Factor in your real costs Let’s be honest, working from Nigeria has its own challenges: •Internet wahala •Generator or inverter bills •VPN subscriptions •Payment delays or charges All of that should reflect in your pricing. Don’t shortchange yourself. ✅ 6. Ask for a deposit. Always. At least 50% upfront. Use platforms like Payoneer, Wise, Deel, or even Chipper if needed. You’re running a business, not doing “please help me” work. ✅ 7. Make your brand look global If your social media, website, or portfolio is looking too “local,” some foreign clients will assume you’re cheap. Polish your look. Show testimonials. Speak the language of impact and results. Bottom line: You’re not just a Nigerian doing remote work. You’re a global talent solving real problems from Nigeria. Start acting (and pricing) like it.🦋

PRICING IS PERSONAL – ONE SIZE DOES NOT FIT ALL Last week, I coached one client to dramatically increase her fees. The result? She was paid several thousand pounds for an hour’s work – a huge leap from the few hundred she’d been pitching for. I also coached another client to create a low-cost offer, opening her services to a wider audience. Two very different paths. Both right for the person walking them. This is why I refuse to shove every client into some cookie-cutter pricing strategy or BS formula. Neither life, nor business, work that way. The most common issues I see with pricing, especially in service-focused businesses like coaching, speaking, and training, include: 1️⃣ Not understanding their value. Mindset blocks, fear, or lack of confidence stop them from charging what they’re worth. 2️⃣ High-ticket obsession. They chase the big bucks, ignoring the cash left on the table from clients who’d happily pay for lower-tier offers. 3️⃣ No value ladder. They’re either all bargain basement or all high-ticket – leaving no room to grow or support different client needs. 🪜 Even when people do build a value ladder, I often see them misjudging the rungs. Offers either fall between the cracks, making them unreachable for some, or feel too cheap, putting others off entirely. Much of this comes down to a good understanding of their audience – and mindset. Too much bravado or a lack of confidence can derail everything. Take the client who raised her fees. She found her level – a price that reflected her experience and matched her clients’ expectations. That first “YES” was all it took to believe in her worth. She can tweak it in future if she chooses, but she’s no longer keeping herself small. Now, the client exploring lower-cost options hasn’t reduced her existing prices. Instead, she’s creating offers that serve the audience who’ve always felt she was out of reach – without adding too much cost or effort on her part. And me? In the past few weeks, I’ve been told my fees are too low twice. Guess what? In the past, some have said my pricing was too high for them. What’s that about trying to please all of the people all of the time? 😄 Some of my audience start on a lower rung, perhaps with a book, a group membership, or an event – climbing my value ladder over time. Others dive straight into higher-ticket options. Whatever option they go for is fine - sometimes we even create something bespoke - because my pricing needs to reflect the people I want to work with right now, the clients I want to serve. When did you last check in with your pricing? Does it reflect the audience you want to work with? And is it right for you and your ideal clients, or has something / someone else influenced your price points? #UnleashYourAwesome, Taz X #leadership #coaching #businessowners

“𝘊𝘩𝘢𝘳𝘨𝘦 𝘸𝘩𝘢𝘵 𝘺𝘰𝘶’𝘳𝘦 𝘸𝘰𝘳𝘵𝘩” is the most toxic pricing advice out there. It sounds empowering. But it’s misleading. Because your 𝘸𝘰𝘳𝘵𝘩 as a person is infinite and not up for debate. And it has nothing to do with what you charge for your services. 𝗧𝗿𝘂𝘁𝗵 𝗶𝘀: 𝗬𝗼𝘂 𝗱𝗼𝗻’𝘁 𝗰𝗵𝗮𝗿𝗴𝗲 𝗳𝗼𝗿 𝘆𝗼𝘂𝗿 𝙬𝙤𝙧𝙩𝙝. 𝗬𝗼𝘂 𝗰𝗵𝗮𝗿𝗴𝗲 𝗳𝗼𝗿 𝘁𝗵𝗲 𝙫𝙖𝙡𝙪𝙚 𝘆𝗼𝘂 𝗯𝗿𝗶𝗻𝗴. Especially if you've gone from a corporate salary to running your own business— You’ll know how confusing that feels. If you've fallen into this trap, it's not your fault and there is a fix ⬇️ Most coaches, consultants and professional service providers severely undervalue what they bring to the table. They justify undercharging, saying things like: “It’s just an hour of my time” Or “I'll charge more the next time” Or "I'm afraid they'll say no and I'll lose the work" But what they don't account for is: ↳ The years of expertise you bring. ↳ The investments made upskilling yourself. ↳ The prep time, the follow-up, the deep thinking. ↳ The collective wisdom of your team (if you have one). ↳ The way you solve a very specific problem in a way most people can’t. and MOST importantly, the tangible and intangible outcomes and results you create for the client from the work you do. Pricing isn’t personal. It’s practical. Some people will say: “That’s more than I expected.” Others will say: “I thought you’d be charging more.” You can’t and shouldn't win everyone based on price alone. But you 𝘤𝘢𝘯 and should get clear on your value. The right clients will 'get it' Because when you stop tying your 𝘪𝘥𝘦𝘯𝘵𝘪𝘵𝘺 to your rates— Everything shifts. You stop over-explaining. You stop questioning yourself. You stop discounting. You stop justifying. and instead you start having a profitable and sustainable business for the long term.  Stop charging based on what you think you're worth and start charging based on the value, results and outcomes you bring.

My post-MBA pricing lesson... from a comsmetologist. Just got my hair cut at Great Clips—$9 (neck trim only), no appointment, in and out in 15 minutes. Next door? A high-end salon charging $80+ for a "transformation." Both are thriving. Why? Each knows exactly who they serve. Keep in mind, I spent two years during graduate school diving deeply into pricing, but nothing lands quite like real experience. Great Clips wins on speed, value, and predictability—never pretending to be a luxury spot. The salon? Premium price, white-glove experience, loyal clients who want to feel special for an occasion... or because it's Tuesday. Here's the lesson: Price isn't just a number. It's your positioning. Price low? You're becoming the go-to for people who value speed and savings... and the downside of those traits. Price high? You're signaling exclusive results and personal touch... which may limit the number of clients and will greatly increase expectations. The mistake? Trying to be both. Stop asking, "What should I charge?" Start asking, "Who will pay for what I truly do best?" Because when you're clear about who you serve, the price sets itself.

How to price your SMM services: When I first started, I’d look at a potential client and judge how many hours the gig would take. If I thought it might take 10 hours/month, I’d pick my hourly rate (usually with about as much precision as a random number generator), multiply it by 10 and then charge that amount as a monthly retainer. As someone with a fully time job and a growing family, I quickly found that my time was incredibly finite and this put a massive cap on my income. If I quit my job, spend zero time with my family, and never sleep, I can only bill for 168 hours per week. Cue an interesting conversation with my dad. My dad is a criminal defense attorney in Kansas City. When people (allegedly) make poor choices, he works to get them the best outcome possible. He told me that people really don’t like going to jail. They’ll pay obscene amounts of money to avoid going to jail. They’ll even be thrilled to pay obscene amounts of money to avoid going to jail. They don’t care in the slightest how many hours my old man spends on the case. As long as the client doesn’t go to jail, they gladly pay his fee. Translated for social media managers: Instead of charging based on how much time you spend, charge based on the size of the problem that you’re solving. Don’t ask, “How many hours will this take?” ask, "What is the value I’m providing?” It doesn’t matter if it takes 30 seconds or 80 hours. If you know how to solve a problem that makes your client 10 bundles of money, it’s perfectly reasonable to charge 1 bundle of money even if it’s 5X your standard hourly rate. On the other side of the coin, you shouldn't be charging massive amounts of money unless you’re truly adding value to your clients.

𝗖𝗹𝗶𝗲𝗻𝘁: "₹𝟱𝟬,𝟬𝟬𝟬 𝗳𝗼𝗿 𝗮 𝗰𝗼𝗻𝘁𝗿𝗮𝗰𝘁? 𝗕𝗵𝗮𝗶, 𝗟𝗮𝗪𝘆𝗲𝗿 𝗯𝗮𝗵𝘂𝘁 𝗺𝗮𝗵𝗮𝗻𝗴𝗮 𝗵𝗮𝗶!" 𝗠𝗲: "𝗦𝗶𝗿, 𝗮𝗮𝗽𝗸𝗮 𝗱𝗲𝗮𝗹 ₹𝟮 𝗰𝗿𝗼𝗿𝗲 𝗸𝗮 𝗵𝗮𝗶. 𝗜𝘀 ₹𝟱𝟬,𝟬𝟬𝟬 𝗺𝗮𝗵𝗮𝗻𝗴𝗮 𝗿𝗲𝗮𝗹𝗹𝘆?" This conversation happened last week, and it reminded me of my biggest struggle as a freelance lawyer: Pricing my services without feeling guilty. When I started freelancing 4.5 years ago, I was charging ₹5,000 for contracts that took me 20 hours to draft. Because I thought: → "I'm new, so I should charge less" → "Indian clients won't pay lawyer rates" → "Something is better than nothing" I was basically paying clients to let me work for them. The wake-up call came when a client said: "You're charging so less, I'm worried about the quality. Are you sure you know what you're doing?" Low pricing was actually hurting my credibility. Here's what changed my pricing game: 𝟭. 𝗜 𝘀𝘁𝗼𝗽𝗽𝗲𝗱 𝗰𝗼𝗺𝗽𝗮𝗿𝗶𝗻𝗴 𝗺𝘆𝘀𝗲𝗹𝗳 𝘁𝗼 𝗲𝗺𝗽𝗹𝗼𝘆𝗲𝗲 𝘀𝗮𝗹𝗮𝗿𝗶𝗲𝘀 "Lawyers earn ₹50,000 salary, so I'll charge ₹30,000" - Wrong logic! I'm not an employee. I'm a business owner with expertise. 𝟮. 𝗜 𝘀𝘁𝗮𝗿𝘁𝗲𝗱 𝗰𝗮𝗹𝗰𝘂𝗹𝗮𝘁𝗶𝗻𝗴 𝘃𝗮𝗹𝘂𝗲, 𝗻𝗼𝘁 𝗷𝘂𝘀𝘁 𝘁𝗶𝗺𝗲 That ₹50,000 contract could save them ₹10 lakhs in future disputes. That compliance audit could prevent ₹50 lakh penalties. 𝟯. 𝗜 𝗿𝗲𝗮𝗹𝗶𝘇𝗲𝗱 𝗰𝗵𝗲𝗮𝗽 ≠ 𝗮𝗳𝗳𝗼𝗿𝗱𝗮𝗯𝗹𝗲 My ₹50,000 upfront contract is more affordable than ₹5 lakh litigation later. The mindset shift: I'm not selling my time. I'm selling peace of mind. I'm selling protection from future disasters. I'm selling my expertise that took years to build. Now when clients say "expensive," I ask: "What's the cost of getting this wrong?" "What's your budget for fixing this if it goes bad?" "How much is your sleep worth?" Good clients pay for value. Bad clients complain about price. Choose your clients accordingly. To every freelancer struggling with pricing: Your expertise has value. Your time has value. Your peace of mind has value. Price accordingly, guilt-free.

How to charge more without changing your service Raising your prices can feel risky, especially when you’re offering the same service. Many businesses worry about losing clients or being seen as too expensive. But you don’t need to change what you do to charge more. You just need to change how you present and deliver it. Here’s how we do it: 1. Refine our positioning and value If clients don’t understand your value, they’ll focus on your price. Position yourself as an expert in your field. Show how your service solves real problems, helps clients reach goals faster, or creates results they can’t achieve alone. 2. Focus on results, not features Clients don’t care about your process or how many hours you work. They care about the outcome. Talk about the results you deliver, such as more revenue, saved time, or happier customers. When you sell results, price becomes less important. 3. Use testimonials and case studies Share examples of your past work, client results, and positive feedback. Show that others have paid your price and achieved real success. 4. Offer tiered pricing Keep your main service, but add higher-value packages with extras like faster delivery, more personal support, or strategy sessions. This lets clients choose what suits them while raising your average sale. 5. Present your price as an investment Help clients see your service as a smart business move, not a cost. Explain the return they’ll get in time saved, revenue gained, or risks avoided. 6. Create a sense of exclusivity People value what feels limited. Work with fewer clients, make your offer by invitation, or offer VIP access. This makes your service feel more premium and worth the higher price. 7. Improve the client experience You don’t need to change what you deliver, just how you deliver it. Communicate better, make the process smoother, and stay proactive. A great experience adds value and makes clients happy to pay more. You don’t have to work harder or change your service to earn more. You just have to show your value clearly and make your clients feel confident investing in you. What’s one thing you can change today to make your service feel more valuable?