How to Price Your Services for a Sustainable Business (Without Guessing)
Pricing is one of the most confusing, overwhelming, and frustrating parts of running a service-based business. Everywhere you look, you’ll find two conflicting pieces of advice:
“Charge premium prices and position yourself as a luxury brand!”
“Undercut your competitors and dominate the market!”
So… which one is right? Honestly? Neither.
The right price for your services isn’t about being the cheapest or the most expensive—it’s about making your business work for you. That means setting prices that are profitable, sustainable, and aligned with the kind of brand you want to build.
Step 1: Research Your Market (Without Copying It)
Before you set a number, you need to understand what’s happening in your industry. Here’s how:
➺ Identify the lowest-priced services in your field. What do they offer, and what do they sacrifice to charge that little?
➺ Identify the high-end, premium services. What makes them “luxury”? Is it the skill level, the experience, the branding, or the actual service?
➺ Find the average range in your industry and compare it to where you want to position yourself.
This isn’t about copying other businesses—it’s about understanding the landscape so you can confidently take your place in it.
Step 2: Know Your Costs (Or You’re Just Guessing)
One of the biggest pricing mistakes? Not actually knowing what it costs you to run your business. Here’s what you need to calculate:
✔ Cost of doing business – software, tools, supplies, website fees, rent, taxes, etc.
✔ Time investment – not just for providing the service but also admin, client calls, revisions, and follow-ups.
✔ Capacity – How many clients can you realistically serve per week without burning out?
Example
If your business costs $1000/month to run and you can take on 10 clients max, you need to make at least $100 per client before considering profit.
Step 3: Create Pricing With Profit in Mind
Your pricing needs to cover your costs AND pay you fairly. Here's how to structure it:
💰
Base Price =
Cost of Goods + Your Time
Profit Margin =
Wiggle Room for Unexpected Costs
Let’s say your materials cost $50 per service, and you need $100 per service to pay yourself. That means your bare minimum price is $150.
But that price leaves zero room for error. If a client asks for a refund, your supplies cost more one month, or you want to run a promo, your profit margin disappears.
That’s why a healthy markup is essential. A common rule of thumb is to double your cost of goods. In this case, your service should be priced at $200 to be sustainable.
Step 5: Pricing Should Work for YOU
At the end of the day, your pricing needs to reflect:
✔️ The quality of service you provide
✔️ Your experience and expertise
✔️ The lifestyle you want to sustain
You’re not here to scrape by, you’re here to build a business that works for you and grows consistently.
Step 4: Match Your Pricing to Your Value
Pricing isn’t just about numbers—it’s about perception. Ask yourself:
✔ Does my pricing align with my skill level?
✔ Am I delivering an experience that justifies the price?
✔ Is my branding attracting the right clients?
If your market ranges from $25–$100, charging $200 means you’re positioning yourself as a premium service provider. But are you offering a premium experience? If not, you either need to adjust your pricing—or upgrade your offer.
Need help aligning your pricing with your brand strategy?
Let’s talk. Your business should be built around the life you actually want—not the other way around.
