Lifestyle Pricing
How to price your services to build your dream life.
"Look! He's walking!" I called out, my voice echoing with a mix of excitement and disbelief as I watched my son's first wobbly steps towards me. It was one of those late evenings when work had kept me away, again.
My wife's response was quiet, almost resigned. "Yeah, I know. He’s been doing that for a while." Her words, simple yet heavy, struck me. But it was what she said next that really hit home: "You’re never here to see it."
In that moment, standing in the dimly lit hallway, the weight of her words settled on my shoulders. I was missing life – the first steps, the everyday moments. My days, evenings, even weekends were consumed by the demands of my advertising job. My marriage felt the strain, and I was absent for those irreplaceable 'firsts'.
That night, as I lay awake, a decision formed in the quiet hours: it was time to step away from advertising. Time to craft a life on my terms, where I controlled my time and my earnings had no ceiling.
But the leap to freelancing wasn't the soft landing I’d imagined. Longer hours, even less money. It was like trading one treadmill for another. I needed a new approach.
I started asking around about pricing, but hit a wall of silence. It was as if fees were a guarded secret. I found myself getting drawn into a toxic game of comparison, where your worth was measured by the rates you could command.
I feared charging too low, worried it would reflect poorly on my skills. Yet, when I aimed higher, impostor syndrome crept in, and I'd often slash my prices just to secure a job. This only led to attracting clients who saw my work as a bargain, not as a creative partnership. They were demanding, often micromanaging, leaving me with a portfolio that didn't represent the work I was proud of.
In this cycle of comparison and insecurity, I realised I was letting others dictate my worth. I wasn't considering what I wanted, what my clients could truly afford, or the value I brought. Worse, I was building a life where work was the central player, and time with those I loved was slipping away.
I knew I had to break free. I invested in a course on Value Based Pricing, shelling out $4500. The principles were solid, but applying them in the real world was like playing a high-stakes game of poker where no one wanted to show their hand.
I longed for a pricing strategy that was straightforward, one that let me step out of the shadows of comparison and into a space where I could price with confidence and clarity. A strategy that would attract clients who saw my work as an investment, not an expense. I wanted to build a portfolio and a bank balance I could be proud of, doing work that fueled my passion.
The answer, it turned out, was Lifestyle Pricing. It’s about starting with the end in mind. Forget about what others are charging. Envision your ideal life and work backward. It's about setting prices that not only sustain your business but also support the life you dream of living.
Here’s how I reshaped my approach:
Define the Lifestyle: I got clear about the life I wanted to lead – the kind of days I wanted to live, the moments I didn't want to miss.
Calculate the Cost: I worked out what that life would cost, putting a price tag on my dreams and necessities.
Balance Work and Life: I decided how much of my time I wanted to dedicate to work and how much to living.
Set the Price: I divided the cost of my desired lifestyle by the number of days I wanted to work, giving me a rate that wasn't just about breaking even but about thriving.
Widen the Income Gap: I looked for ways to reduce expenses, boosting my financial freedom.
Match Services to Price: I tailored my services to fit this new pricing model.
Identify the Right Clients: I sought out clients who valued what I offered at the price I needed.
Build Experience: Where necessary, I worked pro bono to build a portfolio that aligned with my new pricing.
Adopt a Freedom Model: I planned to gradually increase my rates, reducing workdays while maintaining or growing income.
This journey wasn't just about numbers. It was a path to rediscovering why I chose freelancing in the first place – for the moments with my family, for the creative freedom, for a life lived on my terms. It’s a journey of valuing not just my work, but myself.
A really helpful article, especially the steps that you’ve included, it makes a tricky topic seem manageable. I’ll be using it for sure, thank you for sharing.