3 Super-easy & Soulful Pricing Strategies for Soul-o-preneurs

If you want to take your business seriously you have to know your numbers, no question about it. Oh I hear all the soulful women groaning. No worries! Pricing your work is something you can work on over time. However, it does need some mindfulness put behind it right now. As a soulful business woman, it's one of the things that weighed on my mind. And it was mainly because I wasn't bringing in enough money to sustain me. The scarcity mindset took hold and really wreak havoc on my money flow.


In pricing effectively, you want to:
A. meet your needs and live a comfortable life.
B. have prices that your customers and clients can afford and get the services they want from you

If you're feeling discouraged because you’re working hard and not seeing the money coming in,
or you feel disappointed because you're ready to expand your reach and have a bigger impact, I hear ya! I know what you’re going through, and you’re not alone!


Here are three formulas to unblock your money funnel and get the moola magic flowing in your direction:

 

The Soul-craft Formula
This pricing formula is based on the time it takes to create a product, and the materials you put into a piece. It looks like this:

Your rate  x  Hours  +  Materials  =  Your Price

Step 1: Calculate your rate
How much do you need to make in order to live a comfortable life. This is your break-even rate. 

Let's say you want to make $50,000/yr  + work 48 weeks/yr + 30 hours/wk = $35/hr

Next, add your profit. One good estimate that I've read is to add $3,000 of annual profit for each year of experience you have in your field.  This new rate is your ideal rate. 

Let's say: 5 years experience in your field = $15,000 (profit) (same work week and hours as above) = $10.50/hr

Your Rate = $45.50/hr

Step 2: Calculate your materials cost
Add up the cost of all the materials you need for your project.  This includes transportation/shipping or the time it took you to get those materials.  Many Soulful business ladies find it easier to add a mark-up of around 10% to cover these costs.  If a material is particularly difficult or expensive to obtain, you may want to mark it up higher.

You don’t need to include the cost of overhead (i.e. utilities, rent, office supplies) since this has already been figured in to your hourly rate.

In this formula for a 20 hour project: $45.50 x 20 (hours) x10% (materials) = $1,000 (Your price)

The Big-picture Formula
This is a good formula if you are an employee of your own business.

Step 1: Do a little research in your field. What are others charging for the same or similar services?

Step 2: Calculate your price based on what your business needs to make in a year to be profitable after expenses and how much you need to make in a year, plus your ideal rate from above.

Example: Your business needs to make $25,000/yr + you need to make $30,000/yr + you have 5 years experience in the business $15,000.

Your intention in this formula should be set at $70,000/yr

Step 3: Look to Intuition. How does the price feel to you? What does your intuition say about the pricing? If it makes you a little uncomfortable, good! You're on the right track.


The WTF Approach
This is a good formula for someone who has been in business for a while, people know your brand, and you're wanting to expand. The WTF formula is everything that influences the way people see your business and that includes your prices.  So, raising your prices might sound counter-intuitive, but it might be the boost your business needs to be seen as an expert.

I have heard from many soul-o-preneurs who describe wanting to slow down a product or service in their businesses by doubling their prices. Instead of causing the slow down they expected and wanted, it more than doubled the number of clients or sales.  The higher prices made each of them look like a more sought-after soulful business woman.
 
Raising your prices doesn’t always cause a stampede. The trick to maximizing your sales is to bring your prices in line with the rest of your market, and they should not surprise your tribe. It should be able to roll off your tongue with grace and ease (even if it makes you a little queasy).

Pricing Etiquette
Oh yes, please be polite about your pricing.  Here are a couple of common pricing No-No's:

1. Changing your prices too often. By all means market-test your prices, but don’t throw numbers out to see what sticks. Focus on testing one or two product or service price changes at a time. Changing your prices too often, like the ones on your website, will make repeat  customers think that you don't know what you're doing, so you're not really the expert you claim to be.
2. Devaluing your work: It’s great if you make a lot of beautiful things and have run out of people to give them to. However, selling a drum you made for just the price of the materials is underpricing. It devalues your creative work and makes it more difficult for other creative professionals to make a living. Do your market research!
3. Lowering your prices: Always start lower and move your prices up. Lowering your prices causes your customers and clients who have already bought from you at the higher price to think they over paid. It's a good way to lose customers and clients!

Sadly, there is no magic formula for pricing, but with some research, careful thought, and a little soul, the sweet spot that makes your business successful and soulful is at your fingertips. Remember, feeling energized and fulfilled is also important in pricing. If you feel drained because you're doing a lot of work, but products or services are priced too low for the market...Yikes!

How do you price your work? Please share your wise-woman strategies in the comments below.