Customer Reviews

How Much Should I Charge?: Pricing Basics for Making Money Doing What You Love

5 star:		(7)
4 star:		(1)
3 star:		(0)
2 star:		(2)
1 star:		(0)

 

 

I've been a self emplyed remodeling contractor for 10 years. I've read lots of business books. This one is, in my humble opinion, one of the best.

In "How Much Should I Charge" Ellen Rohr explains the folly of setting a price for your professional services based on the going rate (what others are charging for similar services).

Quoting business sage Frank Blau, she makes the point that being "Busy is easy. Profitability is difficult. And there is only one way to be profitable. Charge more for your services than it costs to create them."

Yeah, it's a basic point, but do you know what YOUR break-even cost per hour is? I didn't either, and that's a common problem in the service trades. If you don't know your costs of being in business, how can you determine a realistic price for your services? A price that allows you to get ahead, not just tread water.

In this book Ellen tells you how to create a selling price based on real numbers. She explains things like overhead and budgets and profit and billable hours and all of that. And the really commendable thing about it is that she manages to present all of this information in an entertaining, easy-to-read maner. There is a lot of rock solid common sense and fundamental business wisdom here and it's not boring or hard to follow like in so many other business books.

You can't read this book without being challenged to reevaluate the approach you take to pricing your services. For most service professionals, that's a reevaluation that is sorely needed.

In short, Ellen's excellent book tells you how to take control of your business; to get in the drivers seat and take it where you want it to go based on real costs of doing business, your own special talents as a service professional, and your own personal goals and dreams in life.

I'd like to share one particularly poignant passage from the book. It is profound. It is true. It's something I can relate to.

"Add up all the real costs of running a business. And charge a selling price that will cover all those costs plus generate a solid double-digit profit for the company. Don't sacrifice everything for the sake of keeping your prices low. Because, when you compromise yourself and your family's well being for the sake of your customer's wallet, something nasty happens. You start treating your customers like dirt.

When you make a great living doing the wonderful work that you do, somethiing marvelous happens; you treat your customers like gold! You thank them for providing you with such a nice living. You go out of your way to do nice things for them."

Some people will find what Ellen says about pricing to be provocative. Some will argue that her system can't work in their business or their area, or whatever. These are the people who equate "busy" with success,but who, despite their busyness never seem to get ahead financially like they would like (and should).

The fact is, Ellen's approach can and does work. I'll vouch for it. And I know there are successful service professionals all over the nation who will vouch for it. To succeed in business without a firm understanding and application of Ellen's pricing principles would be sheer luck.

I'll close with another quote from the book:

"Until YOU change, nothing will change for you"

Get the book. You'll be glad you did.

I have been reading several books on the science/art of pricing products and services. I actually ordered this book by mistake. (Sorry Ellen!) The cover made me think it was too goofy, to "entry level" for me. After all, I have been in the consulting business for years. But, I could not put the book down. It took me less than a day to get through the book and the exercises Ms. Rohr included. The manner in which this book is written, a story of a lady interested in starting a business and talking with her business savvy friend, is fantastic. By the time I was done my jaw was on the floor. I was astonished to see the true cost of running my business laid out before me. Figuring out my "break-even point" was a real eye opener and has drastically affected the rates I now charge for my services. The value of this book to anyone struggling to effectively price their goods or services will far outway the cost. The information Ms. Rohr provides can be applied to any industry / business.

If you're new into business or a veteran, this book will answer the question of pricing. So many of us work hard at the wrong price. A clear and understandable method for charging the right price. Thanks!!

As a small business owner I was looking for a book that would assist us in our pricing. "How Much Should I Charge" did just that and more. This book is an excellent tool that brought up expenses we would have never thought of including in our selling price.

Wow !! Finally a helpful book. Being a potter and making each item by hand has always caused me to ask "How much should I charge?". After years of searching for help in this area I came across this wonderful book. Those with MBA's may not need this book, but those of us with BFA's, MFA"s and just plain creative talents will find this book very educational. Ellen's easy reading style and logical approach to pricing makes this book a "must have". Many myths about pricing are pointed out, like charging what every one else does or what the market will bear. If I am to make a living creating handmade items it is important to identify my customer and realize I am not competing with mass produced products. Thank you Ellen for putting me on the road to profitablity.

Writing this review in part to respond to the person who said the 5-star people must be family members. Not at all. Simply people who perhaps didn't take a business course in high school (do they have those courses now?), or didn't understand accounting as it was presented in college, or never thought they would be considering self-employment after 20 years of picking up a paycheck.

After eight years of part-time home business, I have missed grasping the difference between billable hours, overhead costs, and profit. I am most grateful that I had the sense to pick this book up at the library ("doing what you love" caught my eye) and now I am here buying it, and its companion. It took no time at all to read How Much Should I Charge, and perhaps buying it is a waste of money. I get the concept now.

However, I have spent a lot of time not understanding the concept, and I won't be surprised if the finer points evaporate before I complete all the price-development exercises. I can make $30 back in one adjusted price on a piece of art.

I am envious, perhaps, of people who intuitively understand the relationship between effort and costs and pricing. Those people will waste their time and money with this book. I'm almost tempted, however, to buy in bulk and give copies away as project-end gifts to a number of contractors I know who, like me, flail when it comes to understanding the connection between their work and their income. Their rates may go up, but they will be more likely to stay in business...

This book is awesome in terms of fundamentals. Business is about the numbers- it's a game played with dollars and cents as 'points'. If you don't know the score, you're going to lose.
The basic premes that you can't charge less than what it costs to produce your product, or service your clients seems rather obvious when you think about it- trouble is there are too many of us too busy to stop and think about it.
However, this book is weak on what to do when it doesn't appear you can charge what you need to charge and stay in business. The author definitely has some marketing savvy, and makes some good suggestions along these lines-- but if you're really twisting in the wind on the topic I recommend you read The Ultimate Sales Letter: Attract New Customers. Boost Your Sales (Ultimate Sales Letter) and Dan Kennedy's "No BS" books.

If you'd like to know how to attract as many GOOD customers (because there ARE bad customers, and too many of us have too many of them) to your business and raise your prices with impugnity-- you gotta get ahold of Dan Kennedy's stuff.

I was recommended this book and now I'm recommending it.

This book gives simple guidelines on how to determing what your actual selling figures should be based upon your actual numbers. Good reading for anyone just starting their own business.

The book is not absolutely horrible.... its just so fundamentally basic as to be elementary. The principal message: add up all of your expenses along with how much you want to earn and simply make certain that you charge customers/clients more. Hummmm... food for thought. If you've ever taken a business class in high school (not to mention college, an MBA program, or have any business experience at all), this book is beneath you. Otherwise, the book has been well-written and well-illustrated. Grade: C-/D+

This book is mediocre. The layout is fine, quite attractive. But the contents are obvious. One can hardly believe that somebody needed to write a book about it. There is nearly no insight. Only common sense.
The writer is skilled, she could have made a much better book on a wider subject. But where she stands with this book, it is simply poor. You should read instead her other book which is very good: "Where Did the Money Go?".