Sometimes people ask me why I charge $75 an hour for coaching with no formal qualification. No diploma or stickers on the wall. Well, why not? Why not $15 ... $20 or $30? Why $75? The fact is, when you're marketing your business you don't need the mass as customers unless you're selling Pepsi or an Ipod. And, the higher you set your price, the more valuabe the people deem your service. Do you think anyone would hire a coach for $10 bucks a hour? Haha ...
By charging $75, I only get serious cilent. I don't to service some cheap customers named Joe Blow. I want a serious person who seriously wants to learn.
You just need a select few to pay for your service, they'll become repeated customers and they'll spread your service to their friends through word of mouth. Word of mouth is the most powerful form of advertisement, that's how Tupperware company makes so much money.
Think of it as this model: 20/80 ratio. 20 percent are your best customers and 80 percent are your so-so customers. Treat your 80 customers good, and treat your 20 perceont customer like gold, because they'll bring in the bulk of your income.
Soooo, if you're teaching English or some crap, don't be afraid to charge $20 an hour. If you're fixing computers, charge $40 or $75 for your service. Set your price high -- but be sure to couple it with quality service.
If you haven't read my What is your price? to fix your mind set when it comes to setting a price on yourself, read that to do so
