How Much Should I Charge? Pricing Strategies for New Expat Entrepreneurs in Germany
When I started my own coaching business after losing my job in early 2023, one of the biggest hurdles I faced was deciding how much to charge for my services. I was highly educated, highly skilled, and confident about what I could offer—but when it came to setting prices, I felt like a beginner.
As a new entrepreneur, especially as an expat or immigrant in Germany, pricing your services can feel overwhelming. Too low, and you might undervalue your expertise and struggle financially; too high, and you might worry about losing potential clients.
If you’re currently facing this challenge, you’re certainly not alone. Let's simplify the process and set your pricing confidently—here’s exactly how:
Common Pricing Mistakes Expat Entrepreneurs Make
Before diving into solutions, let's address typical mistakes I've seen (and made myself!):
Undercharging Out of Fear: Pricing services too low because you worry clients won't see your value or accept your rates.
Guesswork Instead of Strategy: Setting prices without clear financial goals or understanding your costs and market standards.
Ignoring Taxes and Expenses: Forgetting to factor in German taxes, social security contributions, and business costs—resulting in lower profits.
I've been there, and I know firsthand that pricing isn't just a business decision—it's deeply tied to your sense of worth and confidence as an entrepreneur.
Step-by-Step Pricing Strategy for Expat Entrepreneurs
Here's the practical step-by-step approach that helped me—and many expat entrepreneurs I've supported—establish fair and profitable pricing strategies:
1. Clarify Your Basic Financial Needs
Before setting your prices, first clearly identify your personal income needs:
How much do you need monthly to comfortably cover rent, groceries, transportation, health insurance, and other essential living costs?
Understanding your essential monthly expenses provides a foundational baseline. Financial planning is such a common challenge for many new entrepreneurs that I've designed a special Financial Planning Workbook as part of my founder coaching program curriculum. This helps my clients ease their financial planning process and gain clarity on their numbers.
2. Calculate Your Business Costs Clearly
Transitioning to self-employment means many costs previously covered by your employer are now your responsibility. Clearly estimate ongoing monthly business expenses like:
Health and business insurance
Office expenses (co-working spaces, home office)
Software and marketing tools
Professional fees (tax advisors, legal advice)
Taxes (VAT, income tax)
Additionally, calculate one-time startup costs such as business registration, branding, equipment, and initial marketing.
These numbers give you a clear picture of the revenue your business needs to generate.
3. Research and Validate Your Pricing Strategy
Once you know your basic personal and business costs, realistically validate your pricing by:
Reviewing market norms: Research competitors offering similar services and identify standard pricing within your industry in Germany.
Aligning with perceived value: Reflect on the unique value your international experience and skills bring to your clients.
As a beginner entrepreneur, I found it effective initially to price services slightly lower than the market average to gain traction, build my client base, and gather valuable experience. A fully booked calendar is a good indication that you can start gradually increasing your prices. Conversely, beginners charging high-end prices from the outset typically face heightened client expectations for premium quality. If you can consistently deliver at this level, fantastic—but disappointing early clients can result in negative reviews, which you want to avoid.
4. Choose the Right Pricing Model
Consider carefully which pricing model best fits your business:
Hourly or Daily Rates: Ideal for clearly defined tasks.
Package Pricing: Suitable for bundled services with clear deliverables.
Value-Based Pricing: Based on outcomes and perceived value, ideal for specialists and experts.
I started with hourly rates but eventually moved to package and value-based models, significantly improving both client satisfaction and my financial clarity.
5. Test, Adjust, and Stay Confident
Pricing is dynamic. Clearly communicate your value, and confidently adjust pricing based on market feedback and your evolving experience. Adjustments indicate growth, not initial failure.
Additional Support: Founder Coaching Program & AVGS Funding
If pricing still feels intimidating, structured support can greatly help. My Founder Coaching program—fully financeable through the AVGS voucher from the Job Center or Agentur für Arbeit—offers a comprehensive Financial Planning Workbook that guides you step-by-step through establishing a realistic financial foundation and confidently structuring your pricing.
You may also find additional support in my previous blogs:
You're Worth It—Price Accordingly!
I know firsthand how daunting pricing can feel when starting your entrepreneurial journey in Germany. But this step significantly shapes your business success, confidence, and financial independence.
Take your time, use clear financial tools, and confidently own your worth as a highly skilled expat entrepreneur. If you're feeling stuck or uncertain, please don’t hesitate to reach out for a personal consultation—I’d love to help you navigate this journey. You can book a free 30 minute consultation with me here 👉 My Calendar
