Having Set Prices for Offline Services or Not?

5 replies
I've been reading a wealth of information on this forum about pricing and it's clear that each of us are charging different prices than the other. That being said, how many of you are using set prices for your services?

My opinion is that each customer is unique and you don't want to give a "high status" customer too low of a price point that you may have offered to a "low status" customer because they may think your too cheap and not worthy to do the work for them. And vice versa with giving a "low status" customer too high of a price. Is it bad to adjust prices appropriately on the fly? Is this unacceptable? How crucial, or not is it to have set prices for each of the offline services I am proposing to potential customers that are in a variety of niches?

Please chime in and thanks in advance.
#offline #prices #services #set
  • Profile picture of the author somacorellc
    I used to charge what I thought the client could afford, but not anymore. Nowadays I have pretty set prices for my services, and if you can't afford it..too bad! I look at myself and my company as a premium brand. Sure, you can get a generic wordpress site for $250, but you're not going to get it from me. I have no problem turning down business if they feel it's too expensive.

    Don't get me wrong, I'm not a snob. I totally understand the plight of the small business owner - I'm one of them too. The thing is, we all have to make money, and so maybe I'll give a free month, or a discounted first month, but my main rates don't change. Think of it like selling a car. Take $100, $200 off the top for the first payment if you think they'd be a good fit for your company, but don't cut the price in half just because you want the car off your lot. You'll end up losing money and having to deal with a bunch of crappy customers.

    The thing you have to realize when quoting a price is that when you're doing it "on the fly" and changing your rates, it's all in your head. You're only charging what you think they can afford. You don't know they have a rich uncle who's bankrolling the business, or that they had trouble paying the rent last month. You just don't, and you can't know all the angles.

    By having a fixed rate you basically eliminate the "cheapo" customers who will be a pain in the ass, while still enjoying business from everyone else, even getting more money form people who you may have thought couldn't afford you. Don't go after business just for the sake of having work. Find a rate that makes you happy and makes you good money, and stick with it.
    {{ DiscussionBoard.errors[5227729].message }}
  • Profile picture of the author sdentrepreneur
    For my smaller clients, I start off with a $2,500 Package. It will normally end up around $1,500 but sometimes $750. I have also been shocked over the years, when the client I think its the cheapest, buys the whole package.
    The other school of thought is to provide them with an ABC three choice option.
    Signature

    Learn Digital, Internet and Social Media Marketing For Your Business
    Click here to learn more - Digital and Social Media Marketing Training Course

    {{ DiscussionBoard.errors[5227803].message }}
  • Profile picture of the author genetic
    I don't use set prices, but I guess it depends on your field. Set prices encourage price-shopping. Instead try and show the value, not the cost.
    {{ DiscussionBoard.errors[5228599].message }}
  • Profile picture of the author artemis360
    I set prices. However, if I know the client can afford more I show them other features and benefits i can add.

    For example, my web dev services average $1,200 - $2,000. If a realtor or and investor hires me I charge them that price for just a website. Then i pitch other features like IDX integration, inventory views, appointments functionality, chat, etc. All the other stuff have gone as high as $10k or more.

    So, I don't charge different prices for the same service - I just add additional features.

    Hope this helps,
    Artemis
    Signature

    A r t e m i s
    ------------
    Webtopias.com
    Artemis360.com

    {{ DiscussionBoard.errors[5230531].message }}
  • Profile picture of the author RickDuris
    Have set prices, but be willing negotiate. When you negotiate always do "tit for tat". For instance, lower your price if they give you referrals.

    Or, have set prices and then offer a deal based upon a deadline, time or amount of work.

    - Rick Duris
    Signature
    {{ DiscussionBoard.errors[5230614].message }}

Trending Topics