How to value your service?

5 replies
Firstly, apologies if this has already been answered or discussed, I did a search and didn't come up with much.

I'm currently in the process of putting together a website building service, with a number of packages and a range of extended services. The problem I'm having however is putting a value to the packages and services I'm looking to offer.

I'm wondering if anybody has any tips or guidelines to going about pricing and putting a value to your own service?

Shoot me a PM for more info on what I'm looking to do if you're interested in helping me put together some fair prices .

Cheers!
#service
  • Profile picture of the author Eko Ventures
    Bump... anybody have thoughts on this ?
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  • Profile picture of the author bgmacaw
    You have to price for your target market and deliver the level of service they expect for the price.

    For example, if you're targeting typical IM marketer, your price will have to be quite low and will be a set price. However, if you're targeting a mid-sized to large corporation, you might be talking $100+ per hour and that can be a fairly open ended arrangement as long as you deliver what they want.
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  • Profile picture of the author BloggingPro
    Originally Posted by Yasha View Post

    I'm wondering if anybody has any tips or guidelines to going about pricing and putting a value to your own service?
    Market analysis is going to provide you with the best answer for your service in that area. Are you providing service online? Be prepared to be flexible with your price. Are you providing service offline in your local area? I would be willing to bet your competitors are probably charging to undercut the market.

    I sold web design services in my local town and didn't get many phone calls until after I raised my price. Everyone thought I was just too cheap to be any good. Something to think about.
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    You're going to fail. If you're afraid of failure then you do not belong in the Internet Marketing Business. Period.
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  • Profile picture of the author E. Brian Rose
    The first step on valuing your service or product is deciding how much you want to get paid for it. The next step is to check the elasticity of your price point. That means testing what customers are willing to pay and finding the "sweet spot".

    When I was selling hearing aids online, I found that I was pricing my products too low even though I was happy with the price point. I doubled my prices and my sales doubled in turn.

    Your price point creates a perceived value. If you underprice your services, then your potential customers will think that they would be getting sub-par services.

    Testing is the key. I suggest starting with what you want to get paid and going from there. Don't mind what others are charging for similar services just yet. Find your sweet spot and go from there. The key is to always be testing.
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    Founder of JVZoo. All around good guy :)

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  • Profile picture of the author Eko Ventures
    Thanks for the input! My market is right here actually - I plan on putting my service into a WSO or toss it up on the P&S forum to start.

    That said I know there are a couple others using a similar basis for their service so I've gotten a rough idea what people are charging. I'll definitely do a bit of testing .

    Cheers!
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