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 keen on staying in business for the long haul. No matter what you’ve heard, being the best at what you offer will not be the only deciding factor when it comes to retaining clients. 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. See below some powerful strategies you can use to price your services.
The first thing you should do is to set an hourly rate. Learning a lot more first so as to determine the best hourly rate to use on your clients is best. This will make it easier to set a charge per project after looking at how long the project shall take to complete. Use these rates internally to calculate how much a client owes you at a time and do not broadcast the same to them. It would be wise to understand the needs of the client clearly first. See if you can establish if the project will be an ongoing project or a one-time thing. What is the budget that the client has set aside for this project? 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.
Something else you can do, add padding. Calculate your service rate once you know how many hours you shall spend on a certain service. Adding padding to the total rate is critical. Here you will need to mark up the total rate by about 25-50%. You will still get paid your worth when you do this even when there may be some unexpected overheads and extra 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. After you have learned all this, set up ways that ensure that you get paid as frequent as per the contract you have by setting up the best recurring payment system that suits each client accordingly.
Track the hours too because every second that is unaccounted for is money lost. Consider the best recurring payment system with this in mind.
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