How you price your services reflects the personality of your business, how you compare to your competitors, and how your customers see you. That’s why it’s important to have well-thought-out pricing strategies.
Pricing may seem simple: You offer a product or service at a higher price than it costs to produce it, and you make a profit. But pricing is more complicated than that.
So, how should you price your services?
First, Do Your Research
Pricing strategies should not be based on the comparison of others and emotions. It should be based on industry and experience standards that take into account the value that you bring to a client and the value of the transformation they will experience due to working with you.
Like any business decision, creating a pricing strategy begins with evaluating your business goals and needs.
Once you have established your needs, study the market you are operating. Then, identify three of your biggest competitors by researching online. Only then should you set your pricing strategy.
You should Base Your Pricing Strategies On 2 Things
1. The value of the result you can deliver
Big companies that employ thousands do this all the time. They access the value of a potential employee based on their experience (the value that they can deliver), education, and other related qualifications.
Your education and experience tell 75% of the story. Are you using that same mindset when you assign prices to your services? Or are you still charging hourly, per page, per project, etc?
2. Industry pricing metrics
No matter what pricing strategy you use, the industry in which you operate affects your business success and future decisions.
Understanding the pricing strategies of your competitors can also help you differentiate your business in an economy where thousands of providers offer the same service, a well-thought-out pricing strategy can give you an advantage over your competitors.
Finally, talk to your potential customers to understand what they think about your brand, product, or service. This will give you valuable pricing information.
Finally
Remember, you want customers to buy your product or service, so you need to use a strategy that works for your target market.
I’ve opened up a few slots to audit your current pricing, website, email marketing, and social media. Let’s figure out why you aren’t where you want to be financially and devise a plan to get you there! Schedule a complimentary roadmap session!
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