Setting your first price when you start alone

When you start, you often set your price out of fear: fear of not selling, fear of sounding arrogant. The result: a price that's too low, a lot of work, little revenue, and customers who haggle anyway.

Three markers, not a formula

1. The floor: what you need to earn

Work out the monthly income you need and divide it by the number of customers or projects you can realistically handle. Below that number, every sale costs you money or energy.

The pricing calculator can help.

2. The market: what others charge

Look at three to five offers close to yours. Note their price and what they include. You don't have to match them, but you need to know where you stand and why.

3. The value: what the customer gains

How much is the result worth to your customer? Time saved, one more client, a risk avoided. If your offer earns them much more than it costs, your price has room to go up.

Choose, then test

Set your price between the floor and the value, and accept being at the higher end of the market if your offer is precise. Then offer it to ten prospects.

• If everyone accepts without discussion, your price is probably too low.
• If everyone refuses because of the price, check the clarity of the offer before lowering it.
• If a few hesitate and some accept, you're in the right zone.

The number to track

Your offer acceptance rate. It tells you whether your price is right far better than your gut feeling.