Consider This When Pricing Your Concierge Services
Last week I shared with you some of my greatest mistakes AND successes when it comes to pricing concierge services. This week I’m going to give you MORE information to help you get clear with your pricing.
I want to teach you something important, that you likely haven’t considered before when it comes to pricing your concierge services.
Here’s the story! When potential clients/customers evaluate a product or service, they often weigh its perceived value against the asking price.
What does that mean?
(A-Ha Alert: If you want to be able to price your services in a way that makes you profitable and not “barely getting by”, you’ll want to pay attention to this!)
As the primary marketer of your business, it becomes YOUR JOB to INCREASE the “perceived” value of the services you offer and build out your Value Stack.
At CALive this year, we spent an entire segment on discussing and exchanging ideas on what a “Value Stack” would look like for someone in our industry.
I LOVED hearing all the clarity that everyone gained from this exercise!! So, I want to be sure you have this info too, OK?
When you effectively “Value Stack” your services, the question of “price” becomes irrelevant.
Many people starting out in business will go the route of trying to be the “cheapest.” The thinking is that it will be “easier” to sell if they’re the “cheapest.”
I think I told you before that when I first started out, I “thought” I would charge people $15/hour!! But then I ended up charging $25/hour (and still didn’t attract any new clients).
When we first start out in business, most people are afraid to “look at” their numbers. But turning a blind eye to your numbers only leads to disaster later on. ALWAYS be willing to understand your numbers!!
And THAT is why I changed from selling my service hour by hour to a membership model and “wild card” offers. Because I quickly realized to maintain consistent revenues that didn’t rely on me “pushing” sales, I needed to approach my business differently.
Even though our business model doesn’t require rent or inventory, there ARE things we need to be able to cover expense-wise. You need insurance (MANDATORY!!). You need business cards and a cell phone. You need money to invest in networking and staying in touch with people. You need to invest in mentoring/coaching which = paying for all the “shortcuts!” That “expense,” in my mind, is one of the BEST investments you can make! Why? Because you are making an investment in YOURSELF, my friend – and YOU are more valuable than anything else IN your business.
From the VERY beginning, you need to THINK like a CEO and NOT a HOBBYIST, IF you want to make consistent income in this business.
OK… so obviously I did NOT charge $15/hour because I knew I was going to have to be able to cover my overhead AND make a profit (AKA a “paycheck”).
So here are the 3 things you’ll want to consider when pricing your concierge services:
- WHO is buying your services? You need to have an understanding of your ideal clients. Who are they? What do they DESIRE most? And what are they willing to pay to get “relief?”
- What “historically” will your market bear? You can have the BEST service in all the land but setting your prices at $10,000.00 an hour is NOT feasible if that market is typically used to spending about $50 per hour. And if you’re in a small town, maybe the market will only bear $25 an hour. (YOU NEED to KNOW YOUR market.)
- How can you ADD VALUE and build a Value Stack so that your services are no longer seen as just a “price?” Value ALWAYS TRUMPS Price!! It becomes YOUR job to figure out how to ADD that value in!
I want to warn you though!! Those out there who believe being the “cheapest” will bring in more clients, need to be aware of the side effects to being the “cheapest.”
When you price your services too “cheap,” you will end up becoming a “life coach” to your clients. These will become the clients that need YOU to somehow FILL their needs for them. I don’t want to sound mean in any way, but I have been down this path before.
Anytime someone pushes you to give them a “discount” – these become the same people who become time and energy vampires.
Being “cheap” or giving discounts breeds “cheaper” more “needy” clients. These become the people who don’t actually VALUE what you are providing. And instead, they see you as “the help.” ☹
I hope my share with you today inspires you to really think clearly about what you provide and HOW to base your prices on not just what the market will bear but also on the VALUE.
And don’t forget, we turned our once LIVE pricing workshop into an on-demand training!!
So claim your seat now – https://theconciergeacademy.com/pricing and watch the replay to get really clear on your pricing, your business trajectory, AND your future! XO
P.S. If you have any questions about the pricing workshop, you can reach out to us at support@theconciergeacademy.com. Otherwise, you can sign up right here and we’ll see you there: https://theconciergeacademy.com/pricing.
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Welcome readers! If this is your first time reading my blog, thank you for stopping by! As a concierge who has built a successful business, I have decided to help other budding entrepreneurs do the same! As the Founder of The Concierge Academy, I write about specific topics and marketing strategies that Work for our industry!
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