Are Your Prices Competitive? Here's How to Find Out
There are two ways to grow your sleep consultancy business: increase the number of clients you work with or raise your rates. While new sleep consultants might have the bandwidth for additional clients, you will eventually run out of space in your calendar. Everyone, even Beyoncé, only has 24 hours in a day—and you can’t work through all of them!
The next option is to raise your prices. Sleep consultants need to strike a balance between offering fair rates and earning money for their businesses. Charging too little will help you get clients but won’t make your company profitable. In fact, it can actually make you appear less desirable compared to other businesses. And, of course, charging too much may drive clients away.
So how do you know if your prices are competitive? There are plenty of ways to conduct a little formal or informal market research to figure out the perfect number for your business goals.
Connect with Your Sleep Consultant Community
If you offer in-person sleep consulting, get to know some of the other professionals in your field. By attending networking events with parent support professionals, you can learn a lot about what works and what doesn’t in your region.
Also, don’t forget that sleep consultancy rates can vary widely by region and services provided. If you live in a high-cost-of-living (HCOL) area like San Diego or New York, the sleep consultants nearby might charge more than the national average. Some professionals may make themselves more available to clients than others. They may also include fees like transit costs if they meet families in their homes, so make sure you take the time to understand exactly what affects their prices.
Network With Sleep Consultants Online
The Internet is the next place to turn if you want to learn about sleep consultancy prices. Consider joining groups online for other sleep consultants where you can offer business tips or help each other grow by sharing best practices.
You can also join the Sweet Sleep Academy community and sign up for our coaching or mentorship services. One of our experts can evaluate your business and provide insights on your prices.
Not only can online groups give you access to large pools of consultants, but they can also help you understand what competitive rates for digital services look like. You’ll also pick up a wealth of tips about many aspects of running a business that can impact pricing, like reducing overhead and streamlining booking.
Reach Out to Other Sleep Consultants Directly
If you are already connected with a few sleep consultants, reach out to ask about their rates. Some people may be willing to share what they charge if it means helping the industry. When sleep consultants offer consistent rates based on experience and regional standards, they will be in a much better collective position to create healthy income streams for everyone.
Keep in mind that some people might not be willing to share what they charge, and that’s OK. There are a lot of reasons this might be the case, so there’s no need to take it personally. Everyone runs their business in their own way, and part of building a support network is giving everyone a chance to engage at their own comfort level and pace.
Make Sure Your Prices Meet Your Business Needs
Once you conduct your market research, you’ll have a clear idea of what you should charge for online and in-person services. The next step is to make sure those rates are enough to support your business. Develop a profit and loss (P&L) statement that identifies how much your business costs to run and how much you will bring in with each client. You can also include your monthly salary to confirm that your sleep consultancy makes enough for you to live off of.
Don’t be afraid of financial documents like P&L statements. There are free software services that can create one for you, and they are designed to provide useful insights into your operations. Small changes in your rates can increase your profits or grow your client base. Test different pricing options and see how they affect your profitability.
Once you feel confident handling a P&L, get into the habit of pulling this report monthly. That way you can watch the profitability of your business grow and make changes that reflect market realities.
Feel Confident in Your Sleep Consultancy Prices
New business owners often feel imposter syndrome which causes them to undervalue themselves. They might not feel like they deserve to charge fair rates. Your challenge as an entrepreneur is to overcome this. Know the fair rates in your area and the right prices for online services. Stand by your prices, do your homework, trust your worth, and you’ll find you’re rewarded with a client base that responds to the value you provide.
If you are nervous about setting prices or need help growing your sleep consultancy, contact the professionals at Sweet Sleep Academy. We are here to support you and are eager to watch you thrive.
