The Price is Right: How to determine your pricing
by Precious Stevens on March 22, 2022
Do you know how to price your business in the premium draping industry?
Let’s have a money chat, sis. I know it’s a sore subject for some people, but let’s be real. We gotta charge a little something-something if we want our premium draping business to be more than just a hobby. You might be like, “Precious, I don’t even know HOW to figure out what I should be charging.” No worries, you know I got you boo! Keep reading to find out how to price your business.
Step 1: Remove Limiting Beliefs
Sis, listen. We can be our own worse enemy sometimes. This right here… is YOUR business. You know you’re worth a million dollars and then some. If you don’t, then it’s time to evaluate your mindset. Let’s just be real about something. We can’t sit up here and talk about you making six and seven figures and you still scared to charge over $500 for a backdrop. When it comes to how to price your business, you have to get it out of your head that you can’t make the money you want or deserve. Yes. You. Do. If these so-called personalities and IG models can make thousands of dollars a month by just looking cute and putting together skits, I PROMISE you’re worth that and more when you’re providing an actual service. Get that B.S. out of your head that you’re not worth it.
Step 2: Determine Material Cost
After you get your mind right, you need to think about materials. Believe me, knowing the cost of materials is actually important in determining how to price your business. This is called overhead, and it needs to be taken into account when you’re shooting out estimates. OVerhead is anything you need to do your work. Fabric, tools, storage space…all this can be considered overhead. I go into detail about this in one of my hands-on live workshops, so be sure to sign up so you can check it out.
Step 3: Configure Hourly Rate
This is the final big piece of the puzzle and is subjective. This is completely up to you, and you can go up or down as you please when determining how to price your business. Let me make it easy for you, so you don’t have to overthink it. Think about how much you make at your current job per hour. If you’re on salary, divide your annual salary by 52, then divide that number by 40. That’s a rough estimate of your current hourly rate.
For example, let’s say you make $40,000 a year. Divide that by 52, and you get $769.23. Divide that by 40, and you get $19.23 an hour. Easy peezy.
You got your hourly rate, yet? Now, I want you to add $5 to that number. Boom! You got yourself a new hourly rate you can use for your business. As you get more comfortable and have a bigger portfolio, you can increase it as you see fit. I have another trick I mention in my Draping Masterclass that you should definitely check out when you get the chance.
Knowing how to price your business is easier than you think.
If this was helpful, then you GOT to come to one of my 1-Day Labor-Intensive Live Workshops. In one day, I will teach you how to command premium prices for your work, attract higher-paying clients, and eventually stand out from the crowd of other event professionals. I’m doing a tour across the U.S., so come join me in a city near you!
Drop me any questions you might have in the comments.