…so your clients value your worth
Effectively pricing and presenting your services can have a big impact on your profitability. Most businesses don’t take the time to do this properly and inadvertently miss out on revenue they should be earning. Additionally, the way your represent your pricing will allow your clients to have a better experience in the purchasing process. Overall, your pricing needs to reflect your worth as a creative expert in your field. I find a lot of my clients are always concerned about their pricing and never quite know where to start. So today, I’m sharing five tips for pricing your services.
Make sure you account for your time (as well as materials)
Entrepreneurs are known for ignoring their time invested in a project, in order to keep the costs down for their clients. When you are determining your pricing, you should definitely account for any materials costs. You should also realistically estimate your time invested in the project AND how much you are worth per hour.
Establish service packages
Service packages are a great way to show value to your customers. If you package a variety of items together into one package with a single price, customers feel like they are getting more for their money. Also, create three packages – basic, standard and best. The standard package should be your main service package that the majority of your clients need. By positioning that package in the middle, your clients will be more drawn to the option. It’s not the most or least expensive…it’s just right!
Do not post a la carte pricing on your website
You can post your package pricing on your website, but if you post a la carte pricing for your services too, it could open a can of worms. Clients may not want to pay for something that is included in your package pricing and if they see the cost of it listed in the a la carte pricing, they may ask you to deduct that amount from your package pricing. You don’t want that! So, just stick to package pricing online. You can always offer up a la carte options after you speak to a potential client and determine their needs.
Don’t be afraid to negotiate on price
Negotiation allows you to lower your price to support client acquisition and retention. It also can give you the opportunity to seal the deal with a client that you really want.
Avoid sales and discounts
Okay, so I know I said it’s okay to negotiate on price and that is still true. BUT, you should avoid providing sales or blanket discounts on your services. Chances are the people that are looking at the discount are really not your ideal client. And, if they wouldn’t book you at your normal pricing, then they really don’t value YOU and YOUR services. They value a deal.
By using these five tips, you can effectively price your services (and products) and know that your clients are valuing your worth. If you have questions on pricing, please contact me. I’m happy to help you!
Written by Tom Barnhill, Co-Founder of Business by Barnhill