Having your midwifery business is worthwhile, hence deciding how to get paid what you are worth is challenging. It can be difficult to decide how much you should charge for your midwifery service since midwives just started to be recognized with the value they put in the healthcare industry. You could be priced out of the market if you charge too much. If you charge too much, you might be earning nothing. As a midwife, you must charge a reasonable amount of money that can help you survive your practice in the long run. To help you decide, here are some ways you can use to determine your pricing point for your midwifery business.
1. Do not be a discount queen Although it might seem tempting to offer sales to get new business, if you discount certain things without asking why, you could lose money.
2. Take into consideration all costs This is an important step in pricing your services. Calculating your cost of sales (COS) is essential. You should make a list of all the steps involved in creating or delivering your midwifery services. This includes your time and the cost of outsourcing or hiring help.
3. Calculate Your Overhead Percentage
You must also include costs related to staying in business. I think overhead costs are like a roof above your head. Freshbooks offers a detailed guide which explains everything. These costs include utilities, taxes, office equipment, and office rent. Direct costs refer to the costs associated with each project, such as gas, filing fees and your time. These are the overhead costs listed above. Divide the indirect costs by direct costs to calculate your overhead percentage. Then multiply 100 by 100.
4. Avoid Low Balling Your Prices at First Although it might seem tempting to offer low rates to attract customers and undercut the competition, don't. It will be harder to raise your prices later if you do. Customers might be price sensitive and you could lose customers if your prices are raised to a livable level. Instead, determine the price you would like them to be at the beginning.
5. Fee for Value Consider the value of your services when pricing your services. A professional midwife who has had experience delivering babies will charge a mom more than someone who doesn't. It is important to invest in your education and training. Be valuable to your customers.
6. Don't confuse Rate and Price It's simple to do but don't let your personal rate get in the way of the price you charge. You don't want to charge $100 an hour if you want your hourly rate to be $100. Also, you need to factor in overhead and COS. You might earn less than $75 an hour if you take these into account. If you would like your hourly rate to be $100, then calculate the costs first, and include your rate within those costs. You should then charge $125 and not $100.
7. Take into consideration the market demand You can make changes to your midwifery service if there isn’t much demand. Printing paper flyers is not a popular service in today's market. Consider offering social media graphic design as an alternative if this is your business or skill.
8. Find Ways to Increase Sales Upselling is a great way to increase your income. Do not include additional fees in your base price. These extras should be kept secret and offered to clients as valuable options. You may add ancillary services to your midwifery practice such as ultrasound and other test that will be helpful to the customers
9. Invest in the business to increase rates Find ways to invest in your business to increase your rate of return. You might be more productive with a new technology. Continuing education can give you more authority, knowledge and confidence. Clients will pay more if you offer faster turnarounds and other value.
10. Identify Your Ideal Customer When setting your prices, keep in mind your ideal customer. If you offer discounts and set extremely low rates, you will attract this type of customer. Midwifery services are quite expensive if you don’t have insurance coverage in the US. It is important to determine that your customers have the ability to pay for your services rather than expecting to get discounts in every service that you offer.
11. Create a written fee agreement Make sure everyone signs the fee agreement after you have established your fees. Make sure you are clear and answer every question upfront. This will prevent any confusion or arguments later. Pricing is the first step to establish your business, and you must remember that the first step is always the hardest. Yet, if you realize the value of the midwifery service you can offer to your community, along the way things will go smoothly as how you perceived your practice to be. Have patience and you will get there.
Inks, S. (2020, May 23). How to price your services and get paid what you deserve. SMI Financial Coaching. Retrieved November 28, 2022, from https://smifinancialcoaching.com/how-to-price-your-services/