7 Considerations When Deciding What To Charge Your Clients
Knowing what to charge our clients is always a hot topic. It is hard to figure out if we should base it off of what others are charging, the averages, stay competitive, or something else. There is a fear that if we charge too much, we won’t have any work or a bunch will leave. So whether you are just starting out or have been in business for a long time, the following will be a timeless message.
What Are You Charging For?
Duh Bella… pet sitting and dog walking you might be saying. But what if I told you that is what everyone else is doing and you should be different!
Easy. Are you charging for a service that takes someone’s problem away and gives them a certain positive feeling or are you taking their money and giving them X amount of your time?
It is really as simple as that and it is something that many don’t think about. Most pet sitting websites look like this:
15 minutes = $18
30 minutes = $22
45 minutes = $25
We walk, feed, play, and love on your pets just like they are our own.
Blah… blah… blah…
Now if you are feeling a little irked at me for saying that, I beg you to stay with me and hear me out. What I just showed you above is what the majority of business owners present. How about presenting a problem that you take away and then give them a positive feeling?
Lunch Time Let Out: Never worry about racing home in the middle of the day from work to give your dog relief. Take back your lunch break and relax while we let the dog out. TLC, Water, and love always included.
Puppy Visit: Congratulations on your new addition! Just like babies, puppies are a lot of work and we are here to help save your carpet and furniture by keeping your same training schedule so your carpets don’t get soiled and your furniture gets chewed. With our help, your puppy can learn the rules of your house at an early age with the consistency we provide. We reinforce the words you are using and get all their puppy energy out.
Do you see how one is like a menu and the other is more emotional? Take some time to think about what you are selling and how you are selling. This basically comes down to quantity vs quality.
How Is Your Sign Up Process Presented?
We did an interesting experiment in the Mastermind. We pretended we were a new client for 9 of the members and timed how long it took for us to be able to check Pet Sitter/Dog walker off of our to-do list. The average sign up took about 8-10 minutes. Some we couldn’t even sign up.
Side note: If you are in the Mastermind and didn’t watch yet, it is in the Processes Unit 🙂
Did you know that 60% of the sale is over by the time you even hear from the client? 60%! Imagine how many people are actually going to your website but not converting. Do you know why? It just might be because of the user experience on your website. How easily can they get what they need or sign up? Most of the time if people have questions, they will NOT ask you.
I feel like many business owners are quick to blame it on the price. The price is too high… I can’t charge that much, which might be true, but it is neglecting to look at the full picture and this part of the picture is called User Experience.
What Do You Upcharge For?
Upcharges are those additional fees for extra pets, time or tasks. Consider a few things here:
- How does it make your client feel when they have a base charge but then all these add ons? Does it focus them on the price?
- If you charge by time (ie. 15 min and 30 min…) then are you always leaving a bill if you or your staff is there for extra time? Like 20min or 25min? or are you just leaving money on the table? Who decides how long the job should take?
In other words, will your charges be all-inclusive or al la carte?
Will You Put Your Prices On Your Website?
This is a tricky one that really depends on a number of factors. I will do my best to break it down:
Put them on your site if:
- You have a cheap price.
- Your ideal client is a price shopper.
- Your website is not professionally created.
- You do not have a software where the client can automatically sign up without speaking/emailing you.
- It is a very simple fee structure.
Do not put them on your site if:
- Your price is average or high.
- Your ideal client thinks of their pet as their baby or this service as a luxury.
- You have software that is simple and easy to sign up.
- Your website is professionally created with a user experience (UE) that really is impressive.
- You have problems that you solve on your site, not exchange for time and money.
I am sure there are even more factors, but basically, you don’t want the price to be the determining factor. No one is going to buy from you because you have a pretty website. Price is a factor but when it is introduced into the conversation is important. That being said, if you choose not to have your prices on your website, your call to actions need to be on point (and easy). You also need to address it somehow like, “Prices starting at X.” or “Email/call to find out about our current monthly special”
So when you are trying to decide what to charge consider if it is important to you (or not) to have your prices on your website. That will play a factor when determining what to charge.
Will You Always Be Solo Or Will You Have Staff?
This is a tough one and where business planning comes into play. Obviously, you have a lot larger piece of the pie if you are just solo. However, if you ever want to bring on staff, you must start early in understanding the numbers and what it will take to run a healthy operation. The pricing structure and strategy guide is great for this. This will be a factor in deciding what you should charge.
How Much Does A Visit Cost You?
Have you ever done a cost analysis of how much a visit costs? How much it takes to acquire the clients, wear and tear on your car, gas, your time, supplies, admin work for the actual booking, etc? There are a lot of hidden costs that I don’t think many take into account. This is going to be your expenses. They must be covered and then some. Especially if you have or will have workers in the future.
Will You Be Giving Raises? and When?
Something else to think about when deciding how much to charge is that wiggle room. You want to be able to leave some room for raises. Think about how much you will want to give and how frequently.
Math not Emotions
At the end of the day, you have to remember that deciding what to charge is a mathematical equation and it is not a popularity contest. If you have a keen understanding of all the things that will go into creating your price, you will have a much easier time at the actual marketing of your services. Even though XYZ Pet Sitting company does the same thing as you – the experience and quality are very different. Am I right?
It is exactly why a Ford Fiesta costs $13,000 and a Tesla Model X costs $80,000. Ultimately, both vehicles get you from Point A to Point B bu the experience in which they accomplish the transport is completely different.
How do you think of your business? There is no right or wrong answer. It just all needs to tie into your end goals for what you want from your business.
Most people I talk with want to do less work for more money, be disruptive in their market, have a steady flow of clients, and happy employees who love their pay.
How about you? Tell me below. I want to know!