Think As Inc

PRICING YOUR PRODUCT

February 1, 2010 on 1:10 am | In career coaching, life coaching | No Comments

In addition to knowing your product, you also need to price it.  The salary of your current job is one indication of your market price.  It is always good to know the going rate for your function, level/ title, and industry.  However, salary reflects what your skills and experience are worth in the specific context of your industry.  You also need to consider your worth if you switch industries (e.g., the teacher who moves into corporate training), switch functions (e.g., the English teacher who becomes a writer) or strike out on your own (e.g., the teacher who starts a tutoring company).

 

It is critical to understand how your product would be priced if you did strike out on your own.  For the teacher, a move into training is only one example of another potential product offering.  Online education, community/ adult education classes, tutoring, writing training manuals, even coaching are other possibilities.  Think even broader.  A teacher is comfortable leading groups.  Giving tours and public speaking training are also possibilities. 

 

Now that you have a sense of the range of products you could offer, you can check the market price for all of these.  How much do corporate trainers earn?  What’s the rate for online class teachers, community workshop leaders, tutors?  Pick a product offering that really appeals to you and build it out even further.  If you were to build a touring company, what kind of tours would you offer?  What would be your business costs?  How would you market it?  Do you need staff?  What resources do you need?  How much would you charge?

 

Thinking like an entrepreneur does not mean being an entrepreneur.  You may decide to stay in your same job, company and industry. In that case, pricing your product (i.e., a salary check) ensures you are equitably paid.  However, the exercise of pricing your product is an effective way to understand exactly what your products are.  It is a reminder that you can survive outside of your current role.  It gives you ideas outside of the specific function and industry you are in.  It opens up new possibilities.