How to Set Your Holistic Prices Wisely

Updated: Dec 28, 2021

Introduction


Setting your prices is a highly underestimated yet important component to attracting clients. I’m sure you’ve heard the phrase “money talks.” If your prices are set too high, people will shop elsewhere. If set too low, you may attract less-than-favorable clientele. Various factors may influence how you set your prices. Some examples are: supply and demand, location, market average price, customers’ willingness to pay, your desired profit margin, and the cost to provide the service.


Table of Contents: Supply and Demand

Business Location

Market Average Price

Customer’s Willingness to Pay

Your Desired Profit Margin

Cost for You to Provide Your Service

Conclusion


Supply and Demand


This has always been the Achilles heel for many holistic services, especially if they are obscure and unknown to the public. Even if you have a new cutting-edge service that’s highly effective, without public awareness, you’ll have to educate people on this new service until it catches on. Otherwise, you may have to group your service with other services that the public already has an awareness of.


Thankfully not all holistic services are obscure to the public. For example, hypnotherapy is widely known, and the public is curious about it. So getting a hypnotherapy certification is a wise business move because people already search for hypnotherapy as a service. When people feel a high level of discomfort, they will turn to Google to search for services they know of or have heard of to help ease their pain and address their problems. So if you have a holistic service that the public understands, you will have a much easier time supplying the demand as a holistic business owner. If your holistic service is highly niched and obscure, then you may find yourself having to group your service with similar services in spas, wellness centers or expos.


You may have to underprice a new service that the public does not understand or know. Or spend your time educating to justify the price of your service.


Business Location


Your business’s location can greatly impact its demand. High-traffic areas, especially in tourist locations, will generate a lot of foot traffic. Your business’s location and how you present it will influence the public’s perception of what you do, so be mindful of the type of reputation you want to cultivate.


Do you want to set up a roadside business in a high tourist area? Or do you want to host your business office in a business park with complimentary services such as chiropractors or medical intuitives? Your location could have a major impact on the types of prices you can command and even the clientele you attract.


Market Average Price


Do some Google research in your area to find out what other practitioners charge who offer the same service. This is probably the most common method of determining your rates if you have a physical location for your office. Although augmenting this with a purely online holistic service can give you more flexibility with your price range. Generally speaking, however, people expect to pay a certain price range for a given service. Nobody likes to feel like they were ripped off for paying more for a service for which everyone else charges a nominal rate. If you want to charge more than the market average for your type of service, it’s a good idea to make sure you are offering a lot more value to justify that price in the customer’s eyes.


Customer’s Willingness to Pay


Whereas the market average price will be based on the averages of your holistic service offering by industry, the customer’s willingness to pay is based on what a customer might expect to pay for your particular service based on the cost of living and cost of services in their particular area, which is especially important to consider if you have a physical office location.


Your Desired Profit Margin


Your profit margin is whatever money is left over after paying your monthly expenses, and the amount is entirely up to you. If you are good with money management, you would always pay your expenses first, reinvest some profit into your business and pay yourself. A service-based business such as hypnotherapy is extremely cost-effective because there is very little overhead cost to perform the service, especially if you add an online component to your business practice.


Cost for You to Provide Your Service


Doing business is not free. You have a cost to do business, be open, and have that client sit in front of you. You have your home or office expenses, marketing, payroll, overhead and rent. Whether you have an office or not, you still have to pay home expenses. Your living costs don’t go away if you don’t charge enough for your service or give your service away for free.


Conclusion


These factors may affect how you price your services, and you may need to ramp up to stay sustainable gradually. Of course, you always want to keep your expenses as low as possible and keep your overhead low. Nothing kills a business faster than high monthly expenses like office rent when the space isn’t filled, and income isn’t there. Put yourself in the customer’s shoes and ask what kind of value you can provide for the price you want to charge. Take all of these other factors into consideration, and you should be off to a good start.


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