How to Apply Sliding Scale Pricing with the ASS Model
A housemate of mine is starting a somatic healing business and asked me to look at her offerings/website and give feedback. It is important to her to make sure that her offerings are accessible to anyone who might need it, so very clearly stated in the description of all her offerings that she operates on a sliding scale payment system and then gave a very generous range, 20 Eur per hour to 150 Eur per hour. Clients can decide what to pay her based on their financial situation.
Good idea? Here are my thoughts…
I think it’s GREAT when business owners offer accessibility options when it comes to payment. I myself have taken advantage of such offerings over the years when going through moments of financial instability - so I am in no way discouraging this practice. But…I also know that healers especially tend to undersell and devalue themselves. They want to help people so much and reach as many people as possible that they will literally give their offerings away even when it’s a financial burden to do so. But here is the thing you have to remember, Conscious Business Owners have bills too! And with the rising cost of living, it’s becoming even more important to figure out a fair pricing model, one that keeps YOUR bills paid and also promotes accessibility. Otherwise, you risk burning yourself out or going out of business, which is not good for anyone. And offering a very steep discount can actually backfire in the long run when building your brand because it will cause doubt in those who actually can afford to pay a higher rate. They will ASSume that you aren’t really good at what you do and spend their money elsewhere.
Here’s What To Do Instead
Instead of giving anyone and everyone the ability to choose how much they pay for your services, I recommend applying the Assigned Sliding Scale Model. With the ASS model (I can’t make this shit up — HAHA!) you determine the revenue you need to generate per day, week, or month, and then create assigned slots that ensure that you will be compensated fairly. So if you are a massage therapist and you determine that you need to charge €100 a session to keep the lights on and your family fed, then you can offer 1-€100 sessions per day, 1-€50 session per day, and 1-€150 session per day, for example. Once those slots are full, they’re full. You can use this pricing model as marketing, and say something like: “When you book a €150 session, you are supporting access to services to those who may have a hard time accessing these services otherwise.” If you are an advocate for a certain marginalized group (women, trans folks, or BIPOC, etc.) you can clearly state that your discounted rate is specifically for them. This works especially well if you host events, workshops, or teachings.
The more transparent you are about WHY you are offering an assigned sliding scale the more likely your clients will rally with you in a social-justice-minded private practice.
So there you have it - a fair way to offer sliding scale pricing while also ensuring that your lights stay on and you can feed yourself and your family!
Have you used the ASS model in your business? How did it work out for you? Let me know!
How Much Should I Charge for My Services?
How much should I charge for my services?
This is a question I get a lot when working with clients, especially if they are just starting out.
Unfortunately, there is no magical one size fits all formula to follow. All I can say is this….do your research.
If you have checked out my Youtube Channel or taken one of my website workshops, you know that I am a big proponent of stalking your competitors (or if you are anti-capitalist… your collaborators) in order to find out how THEY are doing things. Specifically, you can also find out exactly how much they are charging for similar services, products, or packages. If their prices aren’t listed on their website (ideal scenario) you can also reach out and pretend to be an interested customer (more skeezy scenario). Or you can just be radically transparent and tell them what you are up to. You can also reach out to virtual communities and ask people what they charge. Keep in mind though, that your rate depends on a LOT of factors such as market value (how much is your product or service worth in your specific region), how much time it actually takes you to create the product or service, how much time it takes you to do the administrative stuff associated with running your business, how much it costs to employ someone to help, etc.
While there is not a magic formula, the following tips can help you figure out best practices.
First, realize that EVERYONE has the ability to define and nurture their desired niche market and make them fall in love with you. If people fall in love with your brand (YOU) and your values, they will be willing to pay MORE than the market value (within reason). My values happen to be that I want to make website building accessible to ALL people not just those with deep pockets. That means my products and services are going to be LESS than the market value. But that' doesn’t mean I am undervaluing myself. This brings me to point #2….
If you are giving away your services for a very low amount and are left feeling depleted, deflated. agitated, or burnt-out - you are not doing anyone any favors. Don’t beat yourself up about it, but definitely don’t do it again. Instead, do this…
Work backward when determining what to charge initially. First, determine your desired hourly wage (don’t forget to factor in the extra costs that freelancers or self-employed people have to face such as health insurance, monthly bills, and expendable income), Then, determine how long it takes you to do your thing. If you are a massage therapist, it’s going to be pretty obvious, but if you are designing websites, it might be a bit more difficult. Make sure to include the time you will spend writing emails, and having meetings- this all counts as work!! So, let’s say my desired hourly wage is 50 euros an hour. And it takes me about 6 hours to build a nice website for a client plus another 2 hours for meetings and follow-ups— I would quote them at 400 euros. I might also add a few hundred dollars for any unexpected occurrences that come up. It’s up to you if you want to break it down for your client. Some folks want to be super transparent.
Now - if you are just starting out, it’s normal to be confused about pricing. There will be a period of time where you will just be experimenting to figure out how much you need to support the lifestyle you desire. Just make sure to log your hours so that next time you know whether you should raise or decrease your prices (although I wouldn’t recommend decreasing your prices if you are having no problems getting customers to pay you for your services.
I hope that helps!