How to price your services

During my time at the Northwest School of Animal Massage (NWSAM), I was often asked by students how much they should charge for an animal massage session. Since we had students from all over the world, a single numeric answer wouldn't have sufficed. Instead, we would always counsel new grads to charge the same hourly rate as a "human" massage session would garner in the same geography.

But what if there is no analog for your industry? If no similar product or service exists, pricing can be a challenge.

"One of the most common reasons small and home-based businesses struggle is that they chronically undercharge," say Paul and Sarah Edwards, specialists in the home-based business field. "Don't discount your prices for fear of not getting enough business. Establish yourself in a specialty where you can excel at what you offer and charge accordingly."

Other pricing tips offered by the Edwardses:

• Don't forget to cover out-of-pocket and indirect expenses.
• Don't forget to add on a reasonable profit.
• Do post your fees openly.
• Don't surprise clients with a bill for unexpected charges.
• Discuss cost increases before implementing them.
• Never sell yourself short.

"Remember, the only surprise your clients should have when they get the bill is what an outstanding product or service they got for the agree-upon price," say the Edwardses in the December 2007 of "The Costco Connection".