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Is $97/mo a good price point to sell a service to local businesses?

by nmvt
38 replies
I have a service that im going to start promoting soon to local business owners locally & nationwide and was wondering if $97/mo is a good selling price for B2B. Its a unique idea that puts 2 services togather into one service and during my research, theres not really anybody doing this. And the different features of my service will be Unlimited, where other people would prolly charge them a monthly fee and a fee to re up there account. I don't wanna give up to much about my idea, but it is a service to help businesses attain new customers and to retain the customers they already have and improve the work environment of there business. Let me know your thoughts or opinions if you already do something like this!
#$97 or mo #businesses #good #local #point #price #sell #service
  • Profile picture of the author Karen Blundell
    businesses will pay a lot more if you can get them more business - Once you establish yourself and have a few testimonials under your belt - you could probably charge more. The only way to know for sure is by testing and tweaking.

    Good luck with your venture!
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    • Profile picture of the author Steve B
      Whether $97 is a good price point is not really the issue.

      What you should be concerned about is how much value is given for the price asked. If the offer is overflowing with value to the customer, and there is no doubt in the customer's mind that he is getting a great deal, he will be fine with $97.

      In fact, it could turn out that $97 is too little to be charging if the appropriate amount of value is evident.

      Steve
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      • Profile picture of the author nmvt
        Originally Posted by Steve B View Post

        Whether $97 is a good price point is not really the issue.

        What you should be concerned about is how much value is given for the price asked. If the offer is overflowing with value to the customer, and there is no doubt in the customer's mind that he is getting a great deal, he will be fine with $97.

        In fact, it could turn out that $97 is too little to be charging if the appropriate amount of value is evident.

        Steve
        Thanks Steve!
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    • Profile picture of the author nmvt
      Originally Posted by Karen Blundell View Post

      businesses will pay a lot more if you can get them more business - Once you establish yourself and have a few testimonials under your belt - you could probably charge more. The only way to know for sure is by testing and tweaking.

      Good luck with your venture!
      Thanks for your input Karen!!
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  • Profile picture of the author belgianguy
    If the average customer value is high then you could probably ask more. Try split testing different price levels.
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  • Profile picture of the author dave147
    Find out how much a new customer or client is worth to the business on average and charge accordingly...$97mo being the minimum if your service is as good as you believe.
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  • Profile picture of the author Raydal
    I say, No.

    Just think about what businesses are paying for advertisement, let's say,
    in the Yellow Pages. There is no way they will take you seriously with
    a small fee as $97. They would think that either you don't know what you
    are doing or your strategy doesn't work--which are basically the same.

    Your fee has to be "contextual".

    -Ray Edwards
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  • Profile picture of the author Suleymen
    Don't be cheap focus on people with lot of money I'm doing offline business as wel, I work with entrepreneurs that can pay me good. If you price is 97$ just make it 297$.

    Because in this business you can set your own prices, When I was started at the begin I was cheap to I was getting clients but than I asked my self what if I asked more money for the deal? So I start changing my price.

    I got my price doubled 3x, Ofcourse I lost clients (40%) because I was to expensieve ... but now I have only clients that pays me real good because I focus only on people with lot of money and people who thinks I am to expensieve I just don't work with


    Example: You can have your service ore product for 50$, to reach 5000$ a month you need 100 clients, but if you make your price 150 then you only need 30 clients to reach that 5000$.
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    • Profile picture of the author nmvt
      Originally Posted by Suleymen View Post

      Don't be cheap focus on people with lot of money I'm doing offline business as wel, I work with entrepreneurs that can pay me good. If you price is 97$ just make it 297$.

      Because in this business you can set your own prices, When I was started at the begin I was cheap to I was getting clients but than I asked my self what if I asked more money for the deal? So I start changing my price.

      I got my price doubled 3x, Ofcourse I lost clients (40%) because I was to expensieve ... but now I have only clients that pays me real good because I focus only on people with lot of money and people who thinks I am to expensieve I just don't work with


      Example: You can have your service ore product for 50$, to reach 5000$ a month you need 100 clients, but if you make your price 150 then you only need 30 clients to reach that 5000$.
      Awesome! Thanks for the feedback.
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  • Profile picture of the author LuckyIMer
    You can start with $97/mo as special offer, and once your business is established and you have a good client base, you can increase your price. Just make sure to transmit the idea to your clients that the $97 is a special price.
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  • Profile picture of the author WeavingThoughts
    If you could make the business 10k extra with this, then $1000+ sounds fine to me.

    If on the other hand they will only earn an extra $500 give or take then $97 may or may not cut it because $500 additional per month isn't their biggest worry anyway.
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  • Profile picture of the author Lance K
    Whatever you price it at, test it. Why $97 instead of $99? How many brick & mortar businesses do you see ending their prices in 7?
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  • Profile picture of the author NeedBucksNow
    That makes sense that would want to base it off the value of your service and how much you think they will make from it. If they make 3-4 times what they paid, I'm sure they'll be happy to pay it again.
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  • Profile picture of the author Vid Yo
    yes it is.

    no it's not.

    I mean it really depends on the lifetime value of your target market's customer . If you'll be bringing them 10 more customers monthly and the customer value is $1k, they're going to wonder why you're not charging more.

    If we knew more about your offer, I'm sure we could answer your question more specifically.
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  • Profile picture of the author dejaone
    Other things to consider in pricing beside he value added that everyone mentioned:

    1) the cost to provide the service
    2) the costing of client acquisition
    3) the cost of replicating the service by others.
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  • Profile picture of the author Esteban Gomez
    Don't focus on the price, focus on making people feel like they are stealing from you.

    Give so much value with your service that they feel that $97/month is nothing and that you are dumb for charging so little money.

    If you give a lot more value than what you charge for you will have tons of clients looking for you.

    Good luck on your new business!
    Esteban Gomez
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    • Profile picture of the author Anderson2014
      When I started with website sales and hosting one client said something to me.
      After my presentation for my services, which included the average costs at the time for website development and hosting, my client asked me a very important question. It was very important because it has stuck with me and will forever.

      "so, why are you so cheap?"

      I now charge 6 times as much, took me less than a year to get there, and have happier, more grateful and more pleasant clients. I also work less on acquisition and build less sites, plus host less sites but I make way more money.

      And all of the above in the last paragraph makes me much happier and less stressed due to less work and of course the fringe benefit of more money.

      Of course we all want more money, but the whole concept of working for yourself or building a business is freedom.

      Hope the above question has the same affect on yous it did for me
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      • Profile picture of the author nmvt
        Originally Posted by Anderson2014 View Post

        When I started with website sales and hosting one client said something to me.
        After my presentation for my services, which included the average costs at the time for website development and hosting, my client asked me a very important question. It was very important because it has stuck with me and will forever.

        "so, why are you so cheap?"

        I now charge 6 times as much, took me less than a year to get there, and have happier, more grateful and more pleasant clients. I also work less on acquisition and build less sites, plus host less sites but I make way more money.

        And all of the above in the last paragraph makes me much happier and less stressed due to less work and of course the fringe benefit of more money.

        Of course we all want more money, but the whole concept of working for yourself or building a business is freedom.

        Hope the above question has the same affect on yous it did for me
        Great Info...Thanks!
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  • Profile picture of the author Anderson2014
    Should be"you as" not yous as in the last sentence. Phones can suck sometimes.
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  • Profile picture of the author Weh Media
    If it's a B2b service and if it works , businesses would pay more than that.
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  • Profile picture of the author borsaronero
    Originally Posted by nmvt View Post

    I have a service that im going to start promoting soon to local business owners locally & nationwide and was wondering if $97/mo is a good selling price for B2B. Its a unique idea that puts 2 services togather into one service and during my research, theres not really anybody doing this. And the different features of my service will be Unlimited, where other people would prolly charge them a monthly fee and a fee to re up there account. I don't wanna give up to much about my idea, but it is a service to help businesses attain new customers and to retain the customers they already have and improve the work environment of there business. Let me know your thoughts or opinions if you already do something like this!

    If the product help them to have new client, maybe make sense to keep who is the client in consideration.

    If you get clients worthing thousands of dollars, maybe you can higher the montly fee.

    Give them a free test, and then if the product do really what it promise, they will pay it more.
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  • Profile picture of the author carlo_sim
    I believe that you can charge way more than your proposed
    pricing of $97. From my experience, you can charge as much as
    $1,000 per month depending on the services that you will give
    to your client.

    The best way to know how much you're going to price your service
    is to know their budget then work on the client's proposed budget and
    give them a proposal.

    If you are starting, then of course you have to charge considerably low. But
    once you build your portfolio, you can slowly increase your prices .
    Check the market, know the problem of your clients and give
    them propoer solutions. Remember these words: Trust, Value and Patience.
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    • Profile picture of the author nmvt
      Originally Posted by carlo_sim View Post

      I believe that you can charge way more than your proposed
      pricing of $97. From my experience, you can charge as much as
      $1,000 per month depending on the services that you will give
      to your client.

      The best way to know how much you're going to price your service
      is to know their budget then work on the client's proposed budget and
      give them a proposal.

      If you are starting, then of course you have to charge considerably low. But
      once you build your portfolio, you can slowly increase your prices .
      Check the market, know the problem of your clients and give
      them propoer solutions. Remember these words: Trust, Value and Patience.
      Thanks Carlo!
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  • Profile picture of the author Alex Arvixe
    Without knowing the product / service you're offering it is hard to say but if it brings in new business and they can profit off of the $97/m then yes, they might be willing.

    You've been given several recommendations to increase your monthly price, I won't repeat that however, if a price hike is possible I do recommend you send the message across that $97 is an intro / discounted price. Offer to lock them in in future also so you don't alienate anyone before signing up.

    Good luck, let us know how it goes .
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  • Profile picture of the author Mo Goulet
    Whatever you are doing, the most important thing to emphasize is how your program is going to help them improve their profit margin by more than what your program is priced at.
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  • Profile picture of the author DubDubDubDot
    I have a box of something I'm selling. Is $20 a good price?

    I'd like to know how so many of you are replying to this thread without ANY information on what he is selling for this $97.
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    • Profile picture of the author Vid Yo
      Originally Posted by DubDubDubDot View Post

      I have a box of something I'm selling. Is $20 a good price?

      I'd like to know how so many of you are replying to this thread without ANY information on what he is selling for this $97.
      My point exactly.

      Care to divulge a little more OP.
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  • Profile picture of the author BelfastCity
    Charge them a fee which equals the net profit of one new client/customer eg: a local opticians might make $150 net in UK per px, so fee would be $150 and so on. Go after the businesses with high net income per sale
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    • Profile picture of the author savidge4
      Aside form how much, because that is irrelevant. you "have a service that you are going to start promoting." Its a combination of 2 things and its going to help business get leads, help with retention and make the work place happy happy... Really?

      The BIG questions... Does the system REALLY work? have you actually used the system?

      If you are asking about price.. the probable answer to these questions is; I don't know if it will work, and no I haven't used it.

      So now lets break down your price... Since this is a "Service", that implies that there will be some amount of effort on your side to make this combination of services work. how much time is involved on your end? An hour a day? 5 hours to set up and 15 minutes a day?

      YOU have a set value to determine MINIMUM return. Once you understand that value you can start looking at the value to the customer. How much is a lead worth? how much is a retained customer worth? How much happier will the office place be? These are the values that determine your services value. Does the math add up? is what your minimum return value and what you can charge producing profit?

      Value equates value. If your customer sees value equal to or greater in your service to what they are paying, then you are on the mark. If you are falling short, then your system has failed.
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      • Profile picture of the author Claude Whitacre
        Originally Posted by savidge4 View Post

        Aside form how much, because that is irrelevant. you "have a service that you are going to start promoting." Its a combination of 2 things and its going to help business get leads, help with retention and make the work place happy happy... Really?

        The BIG questions... Does the system REALLY work? have you actually used the system?

        If you are asking about price.. the probable answer to these questions is; I don't know if it will work, and no I haven't used it.

        So now lets break down your price... Since this is a "Service", that implies that there will be some amount of effort on your side to make this combination of services work. how much time is involved on your end? An hour a day? 5 hours to set up and 15 minutes a day?

        YOU have a set value to determine MINIMUM return. Once you understand that value you can start looking at the value to the customer. How much is a lead worth? how much is a retained customer worth? How much happier will the office place be? These are the values that determine your services value. Does the math add up? is what your minimum return value and what you can charge producing profit?

        Value equates value. If your customer sees value equal to or greater in your service to what they are paying, then you are on the mark. If you are falling short, then your system has failed.
        Finally.

        How are we to know if $97 is a good price? Are you delivering laundry once a month? Probably not a great deal. Are you going to bring in paying customers at least $45,000 in profit a month? You need to charge more.

        And.....

        It kills me when newbies come in here, wanting to keep their idea a secret. as though secrecy is going to help you. As though you really have an idea we haven't all heard 100 times.

        You want a valuable opinion? tell us what the services are. Otherwise, anything we tell you will be just a wild guess. You don't have to give us details, because the details won't matter. But not telling us what the services are? I think that's pretty silly.

        And it's going to be very hard to sell, at any price...if you don't have hard evidence that your service works with real businesses.
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