How to Price Your Services: A Guide for Women Starting Service Businesses

Pricing your coaching, consulting, or freelance services is part math, part psychology, and part knowing your worth. The biggest mistake women make? Undercharging from the start. Whether you charge hourly, by project, or via retainer, your price should cover your actual costs (including taxes, benefits, and time off), reflect the value you provide, and allow you to build a sustainable business—not just pay the bills.

Let’s Talk About the Money Mindset Problem

If your money mindset is whispering “play small” or “keep prices low to attract more clients,” it’s time for a serious change. Scarcity mindset has to go. It’s all about abundance—knowing and trusting that the value you bring is worth every cent.

Here’s the uncomfortable truth: If you’re undervaluing yourself, it’s not just your bank account taking a hit—it’s your entire professional reputation.

When you charge too little, clients assume you’re inexperienced, desperate, or not very good. When you charge appropriately, you signal confidence, expertise, and value.

So let’s talk about how to actually figure out what to charge.

The Pricing Models: Which One Makes Sense for You?

Before you set your price(s) you’ll need to first think about your pricing model(s). The most common pricing models used in coaching and consulting are hourly, retainer and packages.

Hourly Billing

Hourly billing may make sense if you don’t know how long a project will take. But there are significant drawbacks to this approach, including intensive record keeping and the level of scrutiny it invites.

In this relationship, it is a simple time for money exchange. This pricing model can make your services be seen as a commodity though. By presenting your services as an exchange of time your potential client could compare your prices to others and go for someone cheaper.

Pros:

• Simple and transparent
• Easy to calculate what you can earn
• Client knows exactly what they’re paying for

Cons:

• You’re capped by hours in the day
• Penalizes efficiency (work faster = earn less)
• Intensive time tracking
• Clients may scrutinize every minute

Never charge hourly for coaching or consulting. Charging by the hour or by the unit can work for some types of service, but it’s an absolute no-no for coaches and consultants.

Monthly Retainer

A better arrangement, once you’ve built trust with a client, is a monthly retainer. In this situation, clients pay you a flat fee each month for access to your services.

With this method, a client pays a specific amount for a predetermined period. This timeframe can be biweekly or monthly, depending on the scope of consulting required.

Pros:

• Predictable monthly income
• Encourages long-term client relationships
• Less time spent on sales/acquisition

Cons:

• Requires clear boundaries about scope
• Can become overwhelming if managing multiple clients
• May not work for project-based work

Choosing this option requires the coach or consultant to set a few boundaries. Knowing the degree of support required beforehand can help clarify the amount of help or services provided. Setting up this pricing method may mean supplying a specific number of calls for the period covered by the retainer.

Packages/Programs

Creating packages allows potential clients to view you differently. Whereas in the hourly/daily pricing model you can become a commodity and your rate is scrutinised, a package puts the emphasis less on how much of your time they are getting and instead on the result they’ll get from working with you.

Examples:

• 6-week business strategy intensive: $5,000
• 3-month career coaching program: $3,600
• 90-day leadership development package: $7,500

Pros:

• Focuses on outcomes, not hours
• Easier to increase prices (package value vs. hourly rate)
• Client commits to a process, increasing completion rates
• You can structure your time efficiently

Cons:

• Requires upfront clarity about deliverables
• May need to manage client expectations about scope

Value-Based Pricing

Value-based pricing involves having a detailed conversation with the prospect to understand and agree upon the value the engagement, if successful, would have on the business and then determining a price.

The most important thing when pricing your services is that you have to be solving a problem that the client wants solved. Once you know what problem you’re solving, figure out what would be the cost for the client to not have the problem solved. This gives you an idea of how much the difference you can make will be worth to the client.

Example: One image consultant helps women executives make sure their appearance is consistent with the position they want to get promoted to. If one of her clients is in middle management earning $100,000 a year and wants to get promoted to a position earning $150,000, the value of the consultant’s work could be $50,000 or more.

This is the most advanced pricing model but also the most lucrative when done correctly.

The Math: What Your Rate Actually Needs to Cover

Here’s where most people get it wrong. They think: “I need to make $60K a year, so $60K ÷ 2,080 hours (52 weeks × 40 hours) = $29/hour.”

Wrong.

As a freelancer, you have some unique expenses and taxes compared to employees. You also don’t have any benefits you don’t pay for yourself. That’s why you have to make sure your calculations address all these differences.

The Real Formula

Here’s what should be in your calculation:

Monthly Expenses: All your business and household expenses including:

• Rent/mortgage
• Utilities
• Food
• Transportation
• Insurance (health, business, life)
• Business tools/software
• Professional development
• Marketing expenses

Taxes: Self-employment tax (15.3%) + income tax (your bracket)

Benefits:

• Health insurance
• Retirement contributions (aim for 10-15%)
• Paid time off (3-4 weeks)
• Sick days
• Emergency fund contributions

Billable Hours: Here’s the reality check—you may want to divide your gross salary goal by 49 (instead of 52) to compensate yourself for 3 weeks of “paid time off.” Or you may want to work just 4 days a week instead of 5—in that case, you might divide your weekly rate by 32 hours instead of 40.

And remember: Not all your hours are billable. Account for:

• Business development/sales
• Admin work
• Marketing
• Professional development
• Bookkeeping

Most consultants can only bill 50-60% of their total working hours.

Sample Calculation

Let’s say you want to earn $80,000 in take-home pay:

• $80,000 target income
• + $20,000 for taxes (25%)
• + $12,000 for health insurance
• + $8,000 for retirement savings
• = $120,000 total revenue needed

If you work 48 weeks (4 weeks off) × 32 billable hours per week (80% of a 40-hour week accounting for non-billable work) = 1,536 billable hours

$120,000 ÷ 1,536 hours = $78/hour minimum

Many consultants add a 40% markup to cover the cost of expertise and business expenses like overhead, benefits, taxes, and more.

So realistically, you should charge $109/hour or more.

How to Set Your Initial Rates

When You’re Just Starting Out

When you’re starting out, finding the right rate is tricky. If you don’t have much experience, find an initial client and offer to do work for a discounted price or free. Focus on delivering the best results possible. Once you’ve shown the results, create a case study from that first client.

Coaches who are up against seasoned competitors who have been offering services for many years may need to swiftly penetrate the market by offering their service at the low end of the pricing spectrum when they start a consulting business.

But have an exit plan. If you do decide to use penetration pricing, be sure to have a plan in place for when you’ll increase your prices. This should be a temporary pricing strategy.

Competition-Based Pricing (Use Carefully)

Many consultants make the mistake of confusing average consultant rates with standard pricing. Averages don’t take into account your value, the scope of work, client perceptions, or even your cash flow. Feel free to look at consulting rates by industry, but don’t use them as your bible to pricing—use them as another data point to reference.

When to Raise Your Rates

There are really just two situations when you should raise your rates: (1) When you’re fully booked with client work, (2) When you KNOW you’re undercharging (and people are telling you about it).

The Psychology of Pricing

Price Too Low and You Attract the Wrong Clients

Charging an amount higher than people want to pay will result in lacklustre sales. In contrast, setting your prices too low may require more work than it’s worth – and attract poor quality leads.

Low prices attract:

• Clients who don’t value your expertise
• People looking for the cheapest option (not the best)
• More haggling and negotiation
• Higher likelihood of scope creep

Premium Pricing Signals Quality

Oh and wanting the odd holiday, daily luxuries and a comfortable home doesn’t make you selfish. It makes you human. AND it’ll make you a better coach/consultant too.

If your rates vary from industry benchmarks, be prepared to back it up. Have a clear value proposition ready.

Package Pricing in Action

Let’s say you’re a business coach. Instead of charging $150/hour, create packages:

Starter Package – $2,500

• 6 weekly 1-hour strategy sessions
• Business assessment
• 30-day action plan
• Email support between sessions

Value: Approximately 15 hours of work = $167/hour effective rate

Growth Package – $7,500

• 12 weeks of intensive coaching
• Weekly 90-minute sessions
• Custom business plan
• Marketing strategy
• Unlimited email support
• Monthly accountability check-ins

Value: Approximately 40 hours of work = $187/hour effective rate

VIP Package – $15,000

• 6 months of comprehensive support
• Bi-weekly 2-hour strategy sessions
• On-demand text/voxer access
• Quarterly business reviews
• Custom templates and resources

Value: Approximately 70 hours of work = $214/hour effective rate

Notice how the effective hourly rate increases with package value? That’s intentional.

Common Pricing Mistakes Women Make

Mistake #1: Pricing Based on Your Own Budget

If you have too many ideal customers, then you probably have several offers. “My ideal clients don’t have any money” is not accurate. Offer development 101 is that you target people who have the money to pay you and who are in the market for what you are selling right now. If you don’t do this, you’re running a charity not a business.

Mistake #2: Not Accounting for All Costs

When you’re setting prices, think holistically about how much to charge as a consultant. Those hidden costs aren’t so hidden—they’re the foundation of a sustainable career.

Mistake #3: Underestimating Non-Billable Time

If you think you’ll bill 40 hours a week, you’re wrong. Account for at least 20-40% non-billable time.

Mistake #4: Being Afraid to Charge What You’re Worth

The beliefs you have about yourself and charging more can hold you back when trying to engineer your business to work FOR you instead of you working for it.

How to Communicate Your Prices

Be Confident

State your price without apology, explanation, or nervous laughter. “The investment for this program is $7,500.”

Frame It as an Investment, Not a Cost

“This is a $7,500 investment in your business” sounds different than “This costs $7,500.”

Emphasize Outcomes, Not Hours

“You’ll walk away with a complete business strategy, marketing plan, and 90 days of support” vs. “You get 12 hours of my time.”

Offer Payment Plans Strategically

For packages over $5,000, consider offering payment plans (with a slight premium for the convenience).

When and How to Increase Your Rates

The Nike Strategy

Increase your rates gradually until you charge what you’re worth. The more you say higher prices out loud to potential clients, the more used to it you’ll get. Like exposure therapy.

Grandfather Existing Clients

When raising rates, honor existing clients’ current pricing for a set period (e.g., 3-6 months), then give them advance notice of the increase.

What Premium Pricing Actually Looks Like

If you want to charge hundreds (or thousands) of dollars per hour for your coaching, consulting or freelance services, the game becomes pretty simple: You need to be one of the best people in the world at what you do.

But most of us aren’t aiming for $1,000/hour. We’re aiming for sustainable, profitable businesses that allow us to live comfortably. And that requires charging appropriately from the start.

Your Pricing Checklist

• ✓ Calculate your actual costs (living expenses + taxes + benefits + emergency fund)
• ✓ Account for non-billable time (aim for 50-60% billable hours)
• ✓ Include paid time off in your calculations
• ✓ Choose a pricing model (packages > retainers > hourly)
• ✓ Research industry rates (but don’t be constrained by them)
• ✓ Create 2-3 package options at different price points
• ✓ Practice saying your prices out loud (until you’re comfortable)
• ✓ Set a review date to reassess pricing (every 6-12 months)

The Bottom Line

Pricing isn’t just math—it’s positioning, psychology, and value communication.

You need to make money to serve your business goals. The easiest and quickest way to do this is to serve on a 1:1 basis and to charge high-ticket for those services.

Start by covering your costs. Then add margin for the value you provide. Then adjust based on demand and confidence.

The goal isn’t to be the cheapest option. The goal is to charge enough that you can deliver exceptional work without burning out, pay yourself fairly, and build a business that actually supports your life.

Your expertise is valuable. Price it accordingly.

Additional Resources

• Harvard Business Review – Pricing Guide for Consultants
• Consulting Success – Consulting Fees Guide
• Foundr – How Much to Charge for Consulting

Related WMN Articles:

• How to Start a Side Business Without Quitting Your Day Job
• How to Build Your Personal Brand on LinkedIn (Without Being Cringe)
• Your 2026 Side Hustle Tax Guide (So You Don’t Get Screwed)

Disclaimer: This article is for informational purposes only and is not intended as financial or legal advice. Consult with a qualified accountant or financial advisor before making business decisions.