You’ve bitten the bullet and decided to make your entrepreneurial fantasy become a reality. So, business owner, now it’s time to roll up your sleeves and get stuck in.
When you’re getting started, even if you know what the market rate for your industry and level is, quoting the customers can feel terrifying. Because what if the price puts them off? Well, it might, but that doesn’t mean that you shouldn’t earn a living.
How much should you charge? Will people pay it? Are you worth it? Is it too cheap? Is it too expensive? Was this all a terrible idea? Should you just give up at the first hurdle and admit defeat? Move to the moon maybe?
Admittedly, pricing services can be a bit more complicated than pricing up a product which has clear cost and sell margins. Fear not, new business owner, for we’ve put together a few handy hints and tricks of the trade to guide you in the right direction when it comes to pricing your services.
Do some serious snooping around your competitors
The best way to gauge whereabouts on the spectrum you should be pitching yourself pricewise, is to look at what your competitors are charging. It’s all about striking the balance between offering competitive prices and making sure not to sell yourself short or limit profit potential.
Work out how you want to charge
Pricing up a job can be done in units depending on what best suits you.
By the hour
This is a great balance between being flexible and making sure you don’t end up doing more work than you quoted for. You can work this out so that the cost covers things like labour, expenses and any additional amends.
By the day
Similar to charging by the hour but more applicable for longer term or bigger scale projects.
Fixed package fees
Creating a set of standard service packages which you can then promote at fixed costs.
Cost plus pricing
Adding a mark-up onto your break-even value to ensure decent profit margin.
Bespoke value pricing
Adjusting prices per client or project to fit in around budgets or scale of requirements. This works well with loyal or repeat customers but may also leave you open to tricky negotiations.
Review your price list every 6 months
Those in the know recommend reviewing your pricing every six months. Check back in with your competitors, reassess the nature of your industry and evaluate what is and isn’t working for you as a business.
If you’d like to speak to our friendly team of qualified experts about our comprehensive accounting and bookkeeping services, get in touch by calling 020 3355 4047 or emailing firstname.lastname@example.org so we can get back to you.
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About The Author
Serial snacker, compulsive cocktail sipper and full time wordsmith with a penchant for alliteration, all things marketing and pineapple on pizza.