Top Winning Strategies on Pricing Your Services
It is true that pricing services is not easy and this is a challenge that every service provider must encounter at some point. That is if you are in it for keeps. Offering the best services will not be the only thing that your clients consider. Knowing how to set your prices will be a major contributor when it comes to keeping your business afloat. Doing this gives you chance to stay competitive while still getting your worth. Find below a few helpful tips for pricing your services.
Setting up an hourly rate is critical and should be the first that that you do. That means that you shall need to carry out some research to determine a suitable hourly rate. It is how you can then set a charge per project once you have looked at all the details of every project. Use these rates internally to calculate how much a client owes you at a time and do not broadcast the same to them. Ensure that you have fully understood what the client wants first before talking to them about the charges. Try to understand if the project will be going on for some time or if it is a one-time deal. Has the client set up a budget for it? It becomes easy to know when you are getting the short hand of the stick in the equation because you can determine this with the figures and the hours you shall spend on the project. You also get to work out the best recurring payment system that would suit your client as you do this.
The other winning strategy that you can apply is to add padding. Calculate your service rate once you know how many hours you shall spend on a certain service. After you have worked out that total rate, you will need to add padding by marking up the total rate. This is a markup of about 25-50% extra. This padding is what will ensure that you are getting paid what you deserve even when there may be some unexpected extra overheads and additional expenses. It is not unheard of to underestimate some figures after all. To help this run smoother, ensure that you set up the best recurring payment system for the client.
Knowing your customers well is another strategy that works wonders. When you know your customers well, you know what they are willing to pay, the best recurring payment system that works for all, and so much more. It is by doing this that you can then set up some ways that will ensure that you get paid frequently by the client and the best recurring payment system that works for them.
You lose money when a second goes unaccounted for, so track the hours religiously. You can look at how to track these hours and incorporate the same in the best recurring payment system you have for the client.
Cite: useful content