Recently, we asked on Twitter: What is the number one challenge for your microbusiness right now?

It came as no surprise that some of you answered, "Pricing."

Pricing your work is one of the trickiest aspects of managing your own microbusiness, and one of the important factors for success. If you want to be successful in business, you need to get comfortable with money.

More difficult than it sounds, though, isn't it? That's why today we've compiled some of the best advice we've found online for pricing yourself as a freelancer, independent contractor, or small business.
 
 

Starting Out

The first and perhaps most crucial time for deciding how much to charge for your products and services is when you first start out, or when you create a new product or service.

One of our favourite business podcasts, Being Boss, covered the topic of Pricing for Creative Entrepreneurs in a recent minisode. The episode focuses on how to price yourself and your work when you're first starting out as a creative entrepreneur, along with practical maths equations to finding the minimum amount you need to live, and pricing with your gut.

Kathleen also shared more about pricing with your gut here.

Fiona Robinson also has some simple tips on value, profit, and finding your hourly rate.

Another way to bill for your work is value-based pricing. Here's Jonathan Stark on Pricing on Value and why it might be a better fit than hourly rate.

 
 

Increasing Your Prices

Often, for microbusinesses, growth is economic. If you're meeting your goals for number of clients or projects, filling up your calendar and want to grow without working more hours, it's probably time to increase your prices.

Do you think you might be undervaluing and undercharging for your work? Elizabeth Grace Saunders points to confidence as a key factor, noting that business owners who are less confident are less likely to ask for the amount they, and their work, are worth. There's lots to learn from Elizabeth's article on her 4 Strategies to Charge More For Your Work over on 99U.

 
 

Trusting Your Price

Once you have set your price, you may come up against resistance from some potential clients. They might not fully understand what value you offer for your price, or they may think it's high.

Well, perhaps it is high! But perhaps that's because you've researched your market, defined your target customer, and know exactly how much value you can provide your clients. If you're having trouble in this area, read Brennan Dunn's advice on How To Prove Your Value (And Eliminate Client Doubts).

Once you have a price that you think is fair, stick to it and focus on finding clients who can and will pay for your value. As Amy Schmittauer says, Trust Your Price: "It's amazing you can do that!"

 
 

Your Turn

What are your sticking points around pricing? Which resources have helped you define your pricing strategy?

Let us know in the comments or tweet us your thoughts!