Is your price right, OBM? You’re not being greedy, here’s why.
As an online business manager (OBM), setting the right price for your services can be a daunting task. You might be wondering if increasing your prices is the right move or if you’re just being greedy. In this blog post, we’ll discuss 10 logical reasons why you should consider charging more for your services. By the end of this article, you’ll have a better understanding of the value you bring to the table and feel more confident in raising your rates.
What this post covers:
- You have to set aside money for tax and super as a business owner.
- Registration fees need to be factored into your pricing.
- Your expanding skillset has value that should be charged for.
- Equipment and reliability costs impact delivery and efficiency.
- Growth initiatives require upfront investment before financial return.
- Higher prices allow lower client volumes and better work quality.
- More experience warrants increased rates like in regular employment.
- Self-funded training and education needs accounting for.
- Making a social impact involves allocating profits.
- Running a business is demanding and deserves compensation.
Tune in to listen:
1. Tax and Superannuation Obligations
As a business owner, you’re responsible for setting aside money for tax and superannuation. No one else will do it for you. Failing to account for these obligations can lead to debt and financial trouble down the line. Make sure you charge enough to cover these essential expenses.
“You have to pay tax and super. You are not an employee. No one is going to do it for you. You need to do it for yourself. If you don’t set aside the tax and the super, you’re going to end up with a debt.”
2. Registration Fees and Business Compliance
Owning a business comes with various registration fees and compliance costs that can add up quickly. These unavoidable expenses include business insurance, registration fees, and obtaining a business number. Be sure to factor these costs into your pricing to maintain a healthy financial balance.
3. Your Expanding Skillset needs to be included in how you set your price
As an OBM, you’re constantly acquiring new skills and knowledge to stay competitive. Your growing expertise has value, and you should charge accordingly. By incorporating the cost of ongoing professional development into your pricing, you’ll ensure that you continue to invest in yourself and your business.
“An online business manager is forever expanding their skill set, their tools, their knowledge, and we need to factor that in when we are setting our price. We need to charge for them, especially if we want to continue to develop them.”
4. Equipment and Reliability Costs
Your equipment is a significant part of your business, and you rely on it to deliver your services efficiently. Factor in the cost of maintaining, upgrading, or replacing your equipment and the importance of reliability in serving your clients. Investing in reliable equipment allows you to deliver high-quality services consistently, which justifies higher pricing.
5. What You Charge needs to consider your Business Growth
Investing in the growth of your business often requires upfront expenditure before you see a financial return. By charging more, you can set aside funds for growth initiatives like creating new service offerings, marketing campaigns, or hiring additional help, which will ultimately benefit your business and clients.
“You have to consider how you’re going to fund that growth. There are all different ways this can look. For instance, if you’re thinking about creating a new service offering, how long does it take for you to ideate, develop, implement, test any new idea? A while.”
6. Price well, Charge more = Lower Client Volumes = Better Work Quality
Charging higher prices allows you to work with fewer clients without worrying about financial stability. This means you can give each client your undivided attention, resulting in higher-quality work and better client relationships.
7. How You Price Your OBM Services Reflects Your Experience
Just like in traditional employment, your experience and expertise should be reflected in your rates. As you gain more experience and learn new skills, your value as an OBM increases. Don’t be afraid to adjust your pricing to reflect your growing expertise.
8. Self-Funded Training and Education
As a business owner, you’re responsible for investing in your own education and training. Factor the cost of self-funded learning into your pricing to ensure you can continue to develop your skills and stay up-to-date in your industry.
9. Making a Social Impact
If you’re passionate about making a difference, consider allocating a portion of your profits to support a cause you care about. By charging more, you’ll have the financial means to contribute to your chosen cause and create a positive impact on the world.
10. Running an OBM Business is Demanding
Let’s face it—running a business is challenging and time-consuming. You deserve to be compensated for the effort, dedication, and stress that come with being an entrepreneur. Charging more acknowledges the hard work you put into your business and rewards you for your perseverance.
Over to You
By understanding the true value of your services and the various factors that contribute to your pricing, you’ll be more confident in charging what you’re worth. As you implement these insights into your pricing strategy, we’d like to hear from you:
Which of these reasons resonates the most with you, and how will you adjust your pricing to reflect the value you bring as an OBM? Share your thoughts in the comments below and don’t forget to listen to the full podcast episode for more insights on this topic.
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