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118. Price for Profit ~ the prologue

Updated: Mar 21

I was always told growing up that money doesn't grow on trees, you're so good at spending, you're bad with money... I wasn't ever taught how to be 'good' with money, how to invest it or about having different pots for different budgets. Even in previous chapters I was told 'you can't afford that', 'you could never survive on your own', 'you always spend beyond your means'... I mean I could go on here...


I'm sharing this because I listened to all of those negative affirmations and I believed them. Even though I've had a job since I was 9 years old, have always paid my way, always supported myself, have always worked more than one job, bought my first house at 23, started my own business at 21 years old, but yes all of these things I was able to do was because I was 'bad with money'.


It was a friend who set me straight - "D, do you see what you've achieved? Why are you listening to these guys?!" I was so grateful for that reality check, and I started to change my mindset.


In 2017 I began my financial education - reading books, listening to podcasts, learning strategies and putting my lessons into action. I took my boys on two one week holidays during my first year of solo parenting - I had never had a week's holiday!



I share this with you because on my journey to financial freedom I've learned how to price for profit, put boundaries in place, have more time with my family and loved ones and have been through many mindset shifts to over come limiting beliefs.


I wanted to share how my experiences and lessons has helped another business owner recently. She's moving from horticulture to holistic treatments. With gardening and landscaping there's a cap on what can be charged hourly, but within her holistic skill set she was lost with what to charge.


How do I charge my worth?


What are you worth? When I ask that question, most of the time the answer is - I don't know... this is what other people charge, so this is what I'm charging... that wasn't my question though. What are you worth? It's a tough question to answer right?! But it doesn't have to be once we start to break it down. This is what we discuss in our mentorship program, masterminds and business bootcamps... know your worth.


You're worth so much - your personality, your skill set, your education, your experience, your client care, your aftercare, your follow up, your knowledge, your professional advice... when you look at it that way - now what are you worth? You're your own secret sauce, clients come to you because of your expertise.


Part of the process we go though is writing this down - yes it's hard to put a price on your personality, but you can add up all of the hours spent training and practicing your craft. You can also add up all of the courses you've been on.. you see where I'm going with this... the ball starts to drop with this exercise and comments are shared, oh... that's why consultants are so expensive, etc.


When you feel confident in your skill set and know your numbers, it's much easier to charge your worth and feel comfortable about why you charge what you do.


There are times I get questioned by clients about the cost of treatment, but I explain what's included and usually the competition that are charging less don't include as much as I do. Once client's understand what they are getting during their treatment they understand the value that your provide.


What should I charge for my skill set and treatments?


It's all about the equation...


Work backwards...

  • Expenses - overheads, utility bills, cleaning, laundry, general expenses

  • Staff wages including your own

  • Accountancy fees

  • Product cost

  • Treatments cost (I have a special equation for this if your product house doesn't tell you.)

  • Rent and rates

  • VAT

  • Pension


Add up everything that exits your bank account each month. It's important to pay yourself because if you were to sell your business, the new owner will need to replace you. If you constantly reinvest in the business and don't pay yourself then the exit strategy won't be what you'd like it to be.


That discussion has come up many times when I've looked at businesses to buy or acquire, and it's a hard pill to swallow if you think your business is worth more than it is on paper because you haven't paid yourself properly. Pay yourself for everything you do in the business - laundry, social media, bookkeepeing, etc. How much does it cost to open your doors for business each month?


Then work out how much you're currently earning through the till and subtract the outgoing... how much are you left with? This is where you are now... now lets look at where you would like to be!


Sign up for our free Beauty Business Bootcamp - receive a guide to knowing your numbers and get access to a secret podcast to explain how to charge what you're worth.


Thank you for reading, if this was useful please 💖 and share if it could help someone.

Thank you ~ Diana x



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