Pricing Your Services

Small Business Forums Kingmaker Society Community Chat Pricing Your Services

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    This for those who have to set a price to their services rendered. Pricing a concrete product is quite simple because you have to begin with something like the cost of purchasing or manufacturing, etc. But how do you determine your “selling price” when it comes to service?

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    Paul Harrison
    Participant

    Well this all comes down to what your business is. There are a few things that can go into pricing your services, hourly rate, fixed rate, time invested, competitor pricing and overall how much you think your service overall is worth. I recommend looking at your competitors to see how they are pricing their services. Don’t base what you do off of their rates, but it is smart to be aware. It can help you see what makes you different from your competition.

    There was a good Forbes article that you may want to take a look at: https://www.forbes.com/sites/forbesagencycouncil/2017/11/21/how-to-price-your-service/#2c0976ce29a9

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    Brandon Vue
    Participant

    I think when it comes to pricing it is best to look at what your competitors are doing and gage a price range from there. It helps to see what people are already paying then you can weight your services and price as such.

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    I went ahead and acted as a customer and took a look at my competition to see what they were pricing. I also ran a focus group to see what people would want to pay for my service. It helped a lot when it came to figuring out what we needed to do for the rate we were charging. Also that article helped Paul thanks!

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    Tina E Johnston
    Participant

    This is a really interesting topic. Pricing is always naturally one of those things that you wonder about – what’s the competition charging? What would the customer accept? What am I worth? So many great things to ponder. Also, if you undercharge for a service, not only are you not paid for your time well, but you also may end up being undervalued by the customer. This last point is important because it has ramifications on many things like how the customer perceives and treats you, and what you’ll be able to charge for future work. Sometimes it’s worth holding firm to a price even if you’re not going to get the business. Customers sometimes circle back and hire you when this happens if they can’t find what they are looking for elsewhere. It builds trust and respect. Start low, since you’re probably new, but don’t be afraid to ask for what you’re worth when your knowledge starts to mature.

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