Pricing your services
As a business owner, one of the most important structures you should have in place is your pricing models. decisions you need to make to determine whether there are a number of ways to determine how to price your services.
Pricing is also branding there is a perceived association of the service based on the pricing for your potential customers.
Pricing structures are also relevant to your product staircase and at what point your potential client has access to you or your service.
Price services too high and risk not being affordable to your market. Price services too low and risk your services being deemed ‘cheap’ and ‘inexperienced’.
There are a number of ways in which you can decide on a final figure without making the whole process too conflicting.
Research Competitors –
A little research will not go a long way. Look into what your competitors are offering and for what price – is this similar to what you’re offering? It may be a good starting point to consider a price similar.
Research the Market –
Ask the questions: How much is your targeted market willing to spend? What do they earn? What price range will they be most attracted to? Will this sustain your salary and business? If not, maybe it is time to go back to the drawing board.
Hourly Rate vs. Project-Based Fee –
Depending on what you do both can be great options. Some people feel more stable and safe when a client pays in a one lump fee. Although it really depends on the kind of clients you work with, some may need extra attention and therefore an hourly rate can be a good call. Make sure you take into full consideration the time you put in and make sure you’re not losing money.
Regardless of whether you’re offering a one-off product or an ongoing service, it is always important to think long term. This is a good opportunity to reflect on your goals, your business and profit. What is your goal salary for this year? How much does your business need to make per month to achieve this? Knowing this can really put things into perspective. Break it all down piece by piece and package up the prices!
Remember: It is important to accept that there will be times where people will question your prices. Don’t be disheartened. These people may just not be right for your business.
If you are looking for ways to pay for services that perhaps your calls will be helpful for you
Contributed by Katrina Young https://www.katrinayoungconsulting.com/