One of the biggest challenges new agency owners face is figuring out how much to charge for their services. Set your prices too high, and you might scare away clients; too low, and you risk undervaluing your expertise and making your business unsustainable.

In this chapter, we'll go over how to price your services competitively, calculate your costs, and structure your offerings in a way that maximizes both profitability and client satisfaction. We'll also explore value-based pricing and strategies for upselling and cross-selling additional services.

Let's break down how to price your services the right way.

Key Points:

• Pricing should reflect your value, cover costs, and allow for profit growth;
• Calculate your overhead expenses (software, marketing, legal fees, outsourcing, etc.) to set a sustainable baseline;
• Factor in time investment and set a minimum profit margin of at least 30%;
• Avoid underpricing - low rates can make clients question your expertise;
• Consider value-based pricing: charge based on the impact you create, not just the time you spend;
• Offer tiered service packages (basic, advanced, premium) to accommodate different client needs;
• Upselling additional services (e.g., influencer marketing, SEO, email campaigns) can increase revenue;
• Clearly communicate pricing on your website or in proposals to build trust with potential clients.