With the launch of our revolutionary new <a target="_blank" rel="noreferrer noopener" href="https://thehealthsciencesacademy.org/explorer-program/" aria-label="undefined (opens in a new tab)">Nutrition Business Explorer Program,</a> we’ve been building out our library of business articles and tools – designed to give you the acumen you need to succeed!This ever-growing knowledge base has been largely influenced by the needs, questions, and input from our students and graduates.And many of our students have inquired about pricing…Keep reading to learn more about how to price your services – and enjoy your free downloadable guide at the end!<h2 id="048bb312-d94b-45e6-b099-aef3db051b01" data-toc-id="048bb312-d94b-45e6-b099-aef3db051b01" style="font-size: 24px; font-weight: 600; line-height: 1.2;">When it comes to your pricing, don’t guess.</h2>One of the absolute worst things you can do as a business owner is to “guess” what you should be charging your clients. Even a slightly educated guess based on your client base can end up sinking your fledgling nutrition business.In fact, nearly half of all businesses end up failing right around the 10-year mark, and much of this is caused by poor product-market fit and serious mistakes in pricing (too much too early, too low to be sustainable, pricing not consistent with the target market, etc.).To avoid this, it’s imperative that you – as a nutrition business owner – do your homework. You need to know how much you need to make versus how much you want to make.<h2 id="863e699d-8993-426e-8057-d84e28af786f" data-toc-id="863e699d-8993-426e-8057-d84e28af786f" style="font-size: 24px; font-weight: 600; line-height: 1.2;">Cost and price are NOT the same thing.</h2>The price refers to the amount that you’ll put in front of your clients. This is what they will need to pay to secure your services, and includes both your business expenses, business growth expenses, and the amount you need to maintain your lifestyle.However, your cost is simply the amount required to run your business on a monthly basis. This amount must always be included in your price, or you’ll find yourself running out of capital very quickly!<h2 id="b619eb98-dd0a-4313-8c42-8d3877a02e8d" data-toc-id="b619eb98-dd0a-4313-8c42-8d3877a02e8d" style="font-size: 24px; font-weight: 600; line-height: 1.2;">Choose a price point you can live with.</h2>Some entrepreneurs recommend that new business owners refrain from paying themselves initially. However, as a sole-trader or sole-proprietor, this may not make sense for your situation. Meaning that you may need to factor in your living expenses in addition to estimated growth expenses to decide what the profit margin will need to be.Once you’ve added the running cost, and living and growth expenses, you’ll arrive at the amount you’ll need to make each month.Then, divide this amount by the number of clients you can reasonably take on – and you’ll have your starting price point!<h2 id="d226a298-4977-45e1-99d2-5f05385a4efd" data-toc-id="d226a298-4977-45e1-99d2-5f05385a4efd" style="font-size: 24px; font-weight: 600; line-height: 1.2;">Understand the different types of pricing…</h2>While it’s advisable for a new business owner to stick to the simplest kind of pricing (as pointed out above), it’s also important to be aware of your other options.<h4 id="eff783e2-7e87-4401-8653-3a22832416d7" data-toc-id="eff783e2-7e87-4401-8653-3a22832416d7" style="font-size: 18px; font-weight: 600; line-height: 1.2;">Pricing for Cost</h4>As we’ve already described, pricing for cost involves adding the fixed (necessary monthly running) expenses and the variable (growth and cost-of-living) expenses to arrive at a monthly total. Then, dividing this by the number of clients you can realistically see each month for the total that you’ll need to charge each one.For example:Time/labour costs: xWhat’s needed to deliver your services/materials: yThe other running costs associated with the building and technology/overhead: zThen:x + y + z = fixed costsThen…Fixed costs + your cost of living/growth costs = total price pointThis is one of the simplest methods and allows you to create a price point that best works for your business and personal needs.<h4 id="da58a1ca-52ce-41cf-b8c1-0806951454a0" data-toc-id="da58a1ca-52ce-41cf-b8c1-0806951454a0" style="font-size: 18px; font-weight: 600; line-height: 1.2;">Pricing for the Market</h4>To price for the market, you’ll need to first understand your target audience and their location. If they are physically local, then you’ll need to perform a price point analysis of other similar competitors.If your target audience is online, then you’ll need to really understand what other competitors they might turn to within the online space. In some instances, your target audience may be looking at competitors in BOTH locations!Take a complete inventory of your competition and their pricing. Then, you’ll need to write down the very high-end prices, and the very low. This will allow you to set your limitations.Once this information is gathered, you’ll still need to take your cost into account. However, the prices of the competition will ultimately influence yours.Pricing high means that you’ll need to demonstrate an additional value add and a higher-quality service than anyone else. This is done via great marketing (and great certifications).Pricing the same as your competition should only be done when you know you can provide a higher-quality service AND convince your target market of that as well. Again, this can depend on your marketing and networking skills.Pricing below competitors is risky for newer businesses as it can cause your services to be seen as lower quality. While this may seem like a good way to attract a quick customer base, you really need to think about the future of your nutrition business before settling on this strategy.<h4 id="99125674-d1c5-47ad-b954-bc53ae1c71a9" data-toc-id="99125674-d1c5-47ad-b954-bc53ae1c71a9" style="font-size: 18px; font-weight: 600; line-height: 1.2;">Fluid or Dynamic Pricing</h4>Fluid, or dynamic, pricing means that you change your prices based on internal and external market factors. Many of us have seen holiday sales, flash sales, and markdowns for various reasons. We’ve also seen prices go up when a product or service is in demand due to principles of scarcity.Of all of the pricing strategies, this one is the most complicated and will require a serious knowledge of both consumers and the current market. This is best reserved for more advanced business owners or those who have more freedom in their pricing strategies due to early revenue.<h2 id="9a58305b-6e8b-455f-93fb-dea15654201a" data-toc-id="9a58305b-6e8b-455f-93fb-dea15654201a" style="font-size: 24px; font-weight: 600; line-height: 1.2;">Are discounts and anchor pricing good ideas?</h2>As a rule of thumb, discounts can make your services look “discounted” or devalued. This is a competitive strategy that is best reserved for more established nutrition businesses who already have a well-known or more flexible brand.Trying to apply discounts too early – especially with smaller boutique services – can lead to long-term pricing issues and destabilise your initial strategies. However, as you grow and expand, discounts can be used to boost sales when appropriate. Timing is everything here!Anchor pricing is a horse of an entirely different colour and is used in visual marketing as a way to control the psychological response to price points.A nutrition business would list the usual market or internal price for a service, and then show the consumer a much lower price – creating a sense of excitement and impending value.It can also give the impression of a discount for your services when not properly represented. Again, this is a great and proven tactic, but definitely not one to try until you’ve reached a place of stability with your nutrition business.<h2 id="d799187c-bd6c-47a2-baed-1198f32c4051" data-toc-id="d799187c-bd6c-47a2-baed-1198f32c4051" style="font-size: 24px; font-weight: 600; line-height: 1.2;">Patience is a virtue – especially in business.</h2>Waiting can be one of the most difficult aspects of being a business owner.If you’re looking for absolute instant gratification and an immediate profit margin, then owning a nutrition business may not be for you. And that’s okay. Owning any type of business is an exercise in learning, patience, and turning small failures into big wins.Any new business will take time, dedication, and skill to set up, as many of us have learned from garage entrepreneurs who later became the world’s foremost tech giants!The keys to success are skills, careful planning, and personal fortitude. All will take time and energy to put into place. But that effort truly pays off when you see your nutrition business dreams come to fruition.So, don’t immediately be discouraged if you aren’t meeting your income goals. You may need to hold on to your day job for a bit while you become established or tweak your marketing efforts to increase your client base.There are many factors that will need to come together before things will really take off.Fortunately, the Nutrition Business Explorer Program is designed to accelerate this process by giving you access to BOTH the science and the business skills to help your nutrition business hit the ground running.<h2 id="5cae081f-fa99-4350-8072-c06459d9a02f" data-toc-id="5cae081f-fa99-4350-8072-c06459d9a02f" style="font-size: 24px; font-weight: 600; line-height: 1.2;">You can start planning your nutrition business’s future today!</h2>There’s no time like the present to start pursuing your dreams and living life on your terms…<a target="_blank" rel="noreferrer noopener" href="https://thehealthsciencesacademy.org/explorer-program/" aria-label="undefined (opens in a new tab)">Click here for more information on the Nutrition Business Explorer Program today!</a>And don't forget to <a target="_blank" rel="noreferrer noopener" href="https://thehealthsciencesacademy.org/wp-content/uploads/2020/08/How-to-Find-the-Price-Point-for-Your-Nutrition-Business.pdf" aria-label="undefined (opens in a new tab)">download your free guide here...</a>

With the launch of our revolutionary new Nutrition Business Explorer Program, we’ve been building out our library of business articles and tools – designed to give you the acumen you need to succeed!

How to Choose the Right Price Point for Your Nutrition Business With Guide

When it comes to your pricing, don’t guess.

Understand the different types of pricing…

Are discounts and anchor pricing good ideas?

Patience is a virtue – especially in business.

You can start planning your nutrition business’s future today!

Explore science-based articles on nutrition, health, wellness, behaviour change, clinical practice, dietary supplements, gut health, sports nutrition, menopause, and professional development.

Nutrition Blogs | Evidence-Based Health and Nutrition Articles | THSA

Discover science-based nutrition articles, research insights, clinical practice tips, and professional development resources from THSA.

How to Choose the Right Price Point for Your Nutrition Business With Guide

How to Choose the Right Price Point for Your Nutrition Business With Guide

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