This is a LARGE post to write. It’s something I’ve attempted to touch on in the past, but, I’ve written long and thick posts that aren’t easily navigated. This is hopefully my final attempt at simplifying a lofty subject matter.
We’ve all been there. Starting a business and determining how much you need to charge. Then hoping and praying that someone will actually pay you for that. The good news is that it’s as simple as math. The bad news is that sometimes the math doesn’t give us the answer we feel the most comfortable with.
The root of it is to do your cost of doing business.
You need to know how much it costs you to live your life month to month;. how much it will cost you to run the day to day operations of what you do; then, you need to think about your hopes for health insurance, retirement, owning a home, and other long-term goals.
Total your cost for the year, divide that by twelve, then divide that number by the amount of sessions you believe you can realistically book in one month.
It may look like this:
Yearly living expenses: $30,000
Business Expenses: $15,000
Long-term goals: $10,000
55000/12 = $4,583
Sessions anticipated: 8/month?
Cost per session: $573.00
Now, that’s working with a high estimate on sessions booked starting out as well as a low annual income. But, you get the picture.
Replace the calculations with your own numbers and you’ve got your pricing. You can find ways to supplement if you don’t feel ready to charge your needed price. Break up cost with print sale profits or hold marathons where you can bring in more clients at once.
I hope this is the slightest bit helpful for anyone starting out!
with love and pricing,