Pricing products is quite easy but putting a price tag on services is difficult.
Most entrepreneurs, especially the startup founders, face a major pricing strategy issue because they never know how to charge their services. You are literally placing a price on your knowledge and your hard work along with the time you put in. That is why it is difficult. However, you have no other choice but to make a decision.
Just like you think about cost of raw material, charge of manufacturing, packaging, delivery, and other such factors while pricing products, there are factors that you should take into consideration while pricing services. You should first think about the amount of work you’ll have to put in and the time it will take. Once you are clear about it you may focus on what you think you deserve. Be sure to be realistic here because if you think you deserve an astronomical amount, people will not choose your services. In order to keep that in check, we recommend quick market research. Find out how much (minimum and maximum) your target audience would be comfortable paying for your services. Using all this data you may make an informed decision about your choice. We repeat, it has to be realistic and practical; no astronomical and not too less.
Deciding on the pricing is just the first step and believe it or not, it is actually the easy step. The next step is to stand by your price. Most customers will haggle no matter how low you price your services. This is the reason why you shouldn’t bow down to their preferences just because you need clients. The biggest mistakes that many startups make is that they agree to any pricing just so they have work and clients don’t walk away. What happens in this process is that their growth gets stunted. Accepting any pricing will never help you grow.
You should aim at getting in touch with quality clients rather than getting in touch with too many clients who will make you work and work for a meager pay. You find it hard to believe but even when you have just started off, you should focus on quality of your clients. As long as your services are impeccable you will impress and landing excellent clients will not be a problem for you.
You have to be very strategic about pricing especially if you offer services. Consider all the important factors to come up with a price list and then stick to this price at all times. We advise you to settle with lower prices only when you have a strategy in mind and the client promises to increase your brand value.