The price is right! How do you price your services?
- People engaging my services as they were cheap but expecting the earth when it came to deliverables
- People who didnt really have the money to spend on marketing - which usually ended in me having to chase up payment
- Me being tired and over worked as I would have to work double the time to make the money I needed to get by
It wasnt a great strategy. After meeting with a business coach, I realised my price point was terrible and I wasnt doing myself any favours. I only was charging this low rate because my confidence was low
If youre starting out or trying to work out what to charge for your services this info might help you out.
Do your research on your competitors
This is so easy to do, either go in cognito or ask around what people doing the same or similar are charing and figure out what the lowest, mean and median price points are per hour and also per service. Work this out in detail and create a spreadsheet.
Ask around business owners to see what they would be happy to pay
This is so simple and yet people rarely do this - do a casual survey and find out what the actual price point for your target market would be. Market research is king, dont forget to do it.
Figure out what you need to earn to cover costs
Sometimes its easy to think, I work from home, I dont need much I dont have many overheads but have you really broken it down to understand what the costs of running your business are. Figure out the hourly rate you need to earn to make ends meet and never, ever go below this.
What is the demand for your service or product?
Is it a short term, seasonal product or service or can you see lit all year? If it is a new and innovative product you could charge premium. Figure out the demand and the lifecycle when you are pricing your product.
Figuring out the optimal price point takes time, if you are a speciality service or have something completely unique this could mean you can charge more
Feel free to add in any other tips that I might have forgotten..
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