how to price a service

How to Price Your Service: Build a Pricing Strategy | EVUNN

PROBLEM: I understand the problem, but I don't fully understand what it's like to experience it.

To find a profitable problem to solve, you must understand what it is like to experience the problem

STEP 3: DEVELOPING EMPATHY

I would make Step 9 — Develop the Pricing Strategy the point where the user turns the strengthened offer into a defensible price, rather than simply picking a number.

The key distinction is:

  • Step 7: Why is the offer valuable?

  • Step 8: How do we strengthen that value and customer confidence?

  • Step 9: What should we charge, and why?

  • Step 10: Will customers actually pay it?

For EVUNN’s audience—coaches, consultants, freelancers, trainers and other expertise-based businesses—I would write it like this:

Step 9 — Develop Your Pricing Strategy

The Problem We’re Solving

“I have an offer people may value, but I don’t know what to charge for it.”

You have now:

  • Designed the solution

  • Established problem–solution fit

  • Defined the customer outcome

  • Mapped the transformation

  • Designed the offer

  • Packaged the offer

  • Defined the value proposition

  • Strengthened the offer

But one major decision remains:

What should I charge?

This is where many experts get stuck.

They look at competitors.

They calculate how many hours the work will take.

They multiply their hourly rate by the number of hours.

Or they simply choose a price that feels comfortable.

But pricing is not just about what you need to earn.

It is a decision about the relationship between:

Customer → Problem → Outcome → Value → Offer → Price

Your goal is not to find a magical “correct” price.

Your goal is to develop a pricing strategy that makes commercial sense and can be tested in the market.


The EVUNN Mindset Shift

From “What Can I Charge?” → “What Makes This Price Make Sense?”

An expert may think:

“I have 15 years of experience, so I should charge ₦X.”

But customers don’t necessarily value your experience simply because you have it.

They value what that experience helps them achieve.

So instead of asking:

“How much should I charge for my time?”

ask:

“What is the economic and practical value of solving this problem for this customer?”

Your expertise influences your ability to create value.

It does not automatically determine the price.


📖 Book — $100M Offers

$100M Offers

Author: Alex Hormozi

This is the primary book for Step 9.

You have already used the book for offer creation and enhancement. For pricing, return specifically to its pricing section.

What To Read

Chapter 3 — Pricing: The Commodity Problem

Essential

Understand why customers can treat an offer like a commodity when its value isn’t clearly differentiated.


Chapter 4 — Pricing: Finding The Right Market — A Starving Crowd

Essential

Pricing doesn’t exist independently of the market.

A strong offer presented to the wrong market can still struggle.

Use this chapter to think about:

  • Demand

  • Problem importance

  • Customer ability to pay

  • Market attractiveness


Chapter 5 — Pricing: Charge What It’s Worth

Essential

This is the core reading for this step.

Focus on the relationship between:

Price ↔ Value ↔ Outcome

Don’t interpret this as:

“Charge as much as possible.”

The EVUNN lesson is:

Price should be grounded in the value and economics of the problem you’re solving, while remaining credible for the customer and market.


Your EVUNN Action

Build Your Pricing Strategy

Don’t start by asking:

“What number should I put on the offer?”

Start with the economics and value.


1. Define What The Customer Is Paying For

Return to your Customer Value Proposition.

Complete:

The customer is paying for __________.

Don’t answer:

“My time.”

Instead identify the value they’re purchasing.

For example:

“A structured process that helps an independent consultant generate qualified leads consistently.”

That becomes the foundation for your pricing thinking.


2. Define The Desired Outcome

Bring forward the outcome from Step 3.

Ask:

“What is this outcome worth to the customer?”

Consider:

  • Revenue gained

  • Costs avoided

  • Time saved

  • Risk reduced

  • Opportunities created

  • Capability gained

  • Important goals achieved

You don’t need to invent a huge monetary value.

Be realistic.


3. Understand The Cost Of The Problem

Ask:

“What does this problem currently cost the customer?”

This could be:

Financial cost

Lost revenue, wasted spending or missed opportunities.

Time cost

Hours or months spent dealing with the problem.

Opportunity cost

What they could have achieved instead.

Risk cost

Potential consequences of leaving the problem unresolved.

Emotional or operational cost

Stress, uncertainty, frustration or complexity.

This helps you understand the economic significance of the problem.


4. Understand The Customer’s Ability To Pay

Value alone doesn’t determine whether someone can buy.

Consider:

  • Individual vs business buyer

  • Personal vs company budget

  • Customer income/revenue

  • Existing spending on alternatives

  • Cost of doing nothing

  • Buying authority

  • Budget cycles

  • Payment preferences

A highly valuable solution can still be commercially difficult if you’re selling it to a customer who cannot realistically afford it.


5. Identify The Alternatives

Your customer isn’t comparing your price only with another expert.

They may compare you with:

  • Doing nothing

  • Doing it themselves

  • Hiring an employee

  • Hiring a freelancer

  • Hiring a consultant

  • Buying software

  • Taking a course

  • Using another service

  • Continuing with their existing solution

Ask:

“What would this customer do instead of buying my offer?”

This is your competitive alternative set.


6. Identify Your Delivery Economics

Now look at your side.

Determine:

  • Delivery time

  • Preparation time

  • Tools/software

  • Contractors

  • Support

  • Customer acquisition cost

  • Overheads

  • Capacity

  • Number of customers you can realistically serve

This tells you whether the proposed price can support a sustainable business.


7. Choose Your Pricing Model

Don’t assume every expertise-based business should charge hourly.

Consider whether the offer should be:

Fixed-fee

One defined price for a defined outcome/service.

Project-based

Price based on completing a defined project.

Retainer

Recurring payment for ongoing access or service.

Package-based

Different levels of service or support.

Productized service

A standardized service with a clearly defined scope and price.

Programme-based

A structured transformation delivered over a defined period.

Subscription

Recurring access to an ongoing product or service.

Choose the model that fits how the customer receives value and how you deliver it.


8. Develop Your Initial Price Range

Instead of immediately choosing one number, establish:

Floor

The lowest commercially sensible price.

Target

The price you believe best reflects the offer’s value and market.

Ceiling

The highest price that could plausibly be supported by the customer, value and alternatives.

You are creating a pricing hypothesis, not declaring a permanent price.


9. Decide What Is Included At The Price

Bring forward your packaged offer.

Ask:

“What level of service or support does this price actually represent?”

Clarify:

  • Scope

  • Deliverables

  • Access

  • Support

  • Duration

  • Limits

  • Exclusions

This prevents scope creep and makes the price easier to defend.


10. Check Your Price Against The Value

Now perform the most important check.

Ask:

“Does the customer understand why this price makes sense relative to the value of the outcome?”

If the answer is no, you may have:

  • A value communication problem

  • An offer problem

  • A customer selection problem

  • A pricing problem

Don’t automatically lower the price.

First diagnose the problem.


11. Check Your Price Against Your Business

Now ask:

“Can this price support the business I am trying to build?”

Calculate whether the price can realistically support:

  • Your required revenue

  • Delivery capacity

  • Costs

  • Profit

  • Customer acquisition

  • Future growth

A price can be attractive to customers but unsustainable for you.

That’s not a good pricing strategy.


12. Create Your Pricing Hypothesis

Now document:

We believe [customer] will pay approximately [price/range] for [offer] because it helps them achieve [outcome] and provides greater value than [alternative].

This is important.

You’re not saying:

“This is definitely the right price.”

You’re saying:

“This is our current pricing hypothesis.”

Step 10 will help you test that hypothesis.


Your Pricing Decision

At the end of this exercise, select:

Pricing Model

How will the customer pay?

Initial Price

What will you charge?

Price Range

What flexibility exists?

Offer Scope

What exactly does that price include?

Pricing Rationale

Why does this price make sense?

Pricing Hypothesis

What do you still need to learn from the market?


What Not To Do

❌ Don’t price solely by hours

Your customer is buying an outcome, not your stopwatch.

❌ Don’t blindly copy competitors

Their customer, positioning, economics and offer may be completely different.

❌ Don’t automatically charge the highest possible price

High price without sufficient value and credibility creates resistance.

❌ Don’t automatically underprice because you’re new

Being new to selling an offer doesn’t mean the customer’s problem has little value.

❌ Don’t treat the first price as permanent

Your first price is a hypothesis that the market can teach you to improve.


Your Step 9 Deliverable

By the end of this step, you should have a:

Pricing Strategy Blueprint

Containing:

Customer & Desired Outcome

Problem Cost / Economic Significance

Customer Ability To Pay

Alternative Solutions

Delivery Economics

Pricing Model

Price Floor

Target Price

Price Ceiling

Offer Scope At That Price

Initial Pricing Hypothesis

This is the pricing decision you will carry into Step 10.


Your Phase 2 Master Offer Blueprint

You should now have:

Validated Problem

Most Promising Solution

Problem–Solution Fit

Customer Outcome

Transformation Roadmap

Designed Offer

Packaged Offer

Value Proposition

Strengthened Offer

Pricing Strategy

There is now only one major question left:

“Will the market actually support what we’ve created?”

That’s Step 10.


🔓 EVUNN Execution Toolkit

Pricing Strategy Toolkit

Turn your offer and value proposition into a defensible pricing decision.

The EVUNN Pricing Strategy Toolkit helps you evaluate customer value, the economics of the problem, alternatives, delivery costs, pricing models and price ranges—and finish with an initial pricing hypothesis you can take into validation.

→ Unlock The Toolkit

One Payment. All Stage 1 Toolkits. Yours For Life.

No monthly subscription. No recurring fees. Just the tools you need to execute.

→ Unlock All Stage 1 Execution Toolkits


What Should I Learn Next?

You have now designed, packaged, strengthened and priced the offer.

But you’ve made several assumptions along the way.

You assume:

The customer wants the offer.

You assume:

The customer sees the value.

You assume:

The customer will accept the price.

Those assumptions now need evidence.

Step 10 — Validate The Offer

The question we’re now trying to answer:

“Will real customers actually want this offer and pay for it?”

This is where your offer moves from designed to tested.

To understand their experience, use Book 3. Title: Practical Empathy

Practical empathy

 

Author: Indi Young

Time Investment: 5+ hours (Audiobook) 

Listen to Audiobook with Audible free trial |Buy at the Bookshop

 

The Big Idea from Practical Empathy 

Empathy helps you move beyond assumptions and develop a deeper understanding of how people experience problems, situations, what they do, and what matters to them.

For an expert, this is a critical shift. Your expertise tells you what you think the problem is. Empathy helps you understand the problem from their perspective.


 

What Does this Book Help you Achieve?

Practical Empathy helps you:

  • Listen without immediately interpreting

  • Understand people’s experiences more deeply

  • Separate what people actually say from your assumptions

  • Make sense of what you hear

  • Identify patterns across people’s experiences

  • Use those insights to improve what you create

The goal isn’t to become better at selling.

It’s to become better at understanding.


 

Should I Read it Now?

YES.

You’ve already explored:

Step 1: What problems might exist?

Step 2: Why might people want to solve them?

Now you need to understand: What is this experience actually like for the person living through it?


 

Which Chapters Matter Most for me Now?

Chapter 2: Empathy Brings Balance (Essential)

Understand what empathy actually means and why it matters when making decisions about customers.

Chapter 3: Put Empathy to Work (Essential)

Learn how empathy can become part of how you investigate and understand problems.

Chapter 4: A New Way to Listen (Essential)

This is one of the most important chapters for this stage.

Learn to listen to someone’s experience without immediately jumping to solutions, advice or conclusions.

Chapter 5: Make Sense of What You Heard (Essential)

Find out how to process and deepen your understanding of what people tell you.

Chapter 6: Apply Empathy to What You Create (Essential)

Understand how patterns in people’s experiences can influence what you eventually create.

Chapter 1: Business Is Out of Balance (Read this chapter for context only)

It explains why relying only on numbers and analytical thinking can leave important parts of the customer experience invisible.

Skip Chapters 7–9 for now

They focus more heavily on applying empathy within workplaces and organizations.

Listen to Audiobook with Audible free trial | Buy at the Bookshop


 

Your Step 3 Outcome

By the end of this step, you should have:

  • A deeper understanding of the experience behind each problem  of  the 3 problems generated in step 1

  • A clearer distinction between what you know and what you’re assuming

  • Initial insight into what people think, feel and do

  • A better understanding of their frustrations and desired outcomes

  • A list of questions you still need to investigate with real people

Notice what hasn’t happened yet:

You haven’t validated the problems yet. That’s intentional.

You’ve developed empathy, but empathy based on your own reflection is still not enough.

The next step takes you deeper.


 

🔒 Ready to Put Empathy into Practice?

Reading about empathy is not the same as practising it.

The EVUNN Customer Empathy Toolkit gives you a structured way to examine the problem from the customer’s perspective and separate evidence from assumptions.

 

One Payment. For All EVUNN Stage 1 toolkits.

What Should I Learn Next?

You now have a better understanding of the customer’s experience.

But there’s another question:

What are they actually trying to accomplish?

A customer may describe a problem, but the problem itself isn’t always the real objective.

They may be trying to make progress toward something bigger.

Step 4: Jobs-to-Be-Done

You’ll move from: Understanding their experience to understanding the progress they’re actually trying to make.

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