It is not uncommon for small service businesses to under price their time and expertise. If you are struggling to figure out what your time, talent and expertise are worth here are few steps:


  • Research what your peers and competitors are charging. A great resource for the macro-market is GlassDoor, trade magazines and national organizations to get a general idea of what others are charging. To really hone in on your target audience in your local market, research local business groups, the chamber of commerce, and other similar businesses.
  • Knowing your market is another key factor in determining your worth. For example, a florist in an area like New York City typically has a much higher fee than a florist in a smaller market like Fort Smith. There are a couple of reasons for this, it doesn’t mean that the New York City florist is any more talented than the Fort Smith florist, it just means that that market supports the rate being charged. The higher rate also covers the increased cost of doing business in NYC.


  • You must also take into consideration your overhead. This includes expenses such as healthcare, taxes, utilities, office supplies, rent/mortgage, and any other expenses incurred with doing business and being self-employed.

Woman Buisness Owner

Potts & Company can assist you in determining an appropriate price to charge for your services in your field and market. One of the biggest mistakes you can make is undervaluing your time and expertise. Doing so can actually backfire as potential clients might get the perception that your low rates equate to lack of skill and knowledge. Something else you need to be mindful of is that you should periodically revisit your rates by keeping up with hours spent on each project. Additionally, this allows you to calculate any increases in overhead. Contact Potts & Company, 479.648.2846, today to help you calculate your worth.