Figuring out what to charge can be a challenge. I know that many personal chefs struggle with this when they first start out, and once they have been working with clients for a while they still aren’t always sure about their fees.
Two things I know you shouldn’t be doing to determine your fees are the following:
- Looking around to see what other personal chefs charge in your area and then charging the exact same thing
- Starting with very low fees just to get business quickly with the thought that you will gradually raise your rates as you get more clients and more experience
Here’s why you don’t want to do the above-mentioned things to set your prices. You are a unique person with unique talents and training when it comes to being a personal chef. Who you are, what you offer and how you offer your services will be different from someone else. Therefore, what you charge should be different.
In addition, it is important for you to know what YOU want to make and what YOU need to earn in order to achieve your financial goals. You can’t simply look at what someone else is charging and copy it to be sure you have set your pricing right for yourself.
If you charge very low fees, you will soon feel resentful of the business you do get because you won’t feel like you are being compensated fairly. Additionally, lower fees convey lower value just what you don’t want to convey. The kinds of clients you attract with low fees are less likely to be your ideal clients, and if you work with them, you won’t have room in your schedule for clients who will pay you what you are worth.
So how do you come up with a price to charge? Take a look at this simple method:
Step #1: Set a Revenue Goal for the Year and Make it 50% Higher Than What You Made the Year Before
That’s right. I want you to stretch yourself. At this stage don’t worry about how you will achieve this goal. By setting your sites higher, you are psychologically removing the mental cap you may have on how much money you can make. Once you remove the mental cap on your income, you can open yourself up to new ideas on how you can reach that financial goal.
If you are just starting out, set your revenue goal for the year by adding together your monthly household expenses, estimated business expenses plus some amount more so that you have extra cash to do with as you please then set a yearly earnings amount based on this figure.
Step #2: Divide by 12 to Get Your New Monthly Earnings
With a clear yearly earnings goal now in your mind, you will tend to make different and better decisions about what you should work on in your business and the actions you should take. Remember that to achieve any goal, you must be able to visualize it first. You will attract what you focus your attention on especially if you take actions that support your vision too.
Step #3: Use Your Monthly Earnings to Determine Your Business Building Actions
Now, it’s time for you to sit down and figure out what you need to do to achieve your monthly goals. How many networking events do you attend? How many consults or assessments do you need to give? Can you raise your prices? What about possible passive income streams? You need to come up with a plan that makes it possible for you to achieve your new financial goals.
And what if you don’t achieve your new financial goals using this strategy? It may happen, but I am willing to bet that by taking the above steps, you will generate more income than you would have otherwise because you will be taking more high-payoff actions that will attract more clients and opportunities on a regular basis.