How do I price up my services?
Pricing up services is a lot more difficult to do that pricing up products. And neither are an exact science!
It needs to be approched from several different angles and and average taken – along with good old gut feeling (but be brave!)
First off work out how much you want to earn per year – how much do you need for a really comfortable life style. Divide that by 52 (weeks) then by the number of chargeable hours you want to work in a week. Then if you think you’ll only sell half that amount of time double the chargeable hourly rate you want. Keep KPIs on chargeable hours you could do in the week and also the actual hours you can charge for. The goal is to make them equal.
Next work out how long each service or project is going to take you, include time on the phone and on emails and maybe some time doing research. Your experience of running your business will help with this – some customers will be a dream others will be a pain! Use the figure from above to calaculate the cost in time.
– Try and find out what your competitors are charging.
– ask some current customers what they think of your pricing
You will find the prices you should charge somewhere in that mix!
Remember everyones buying decision is based on 80% emotion and 20% logic (price). Your marketing should reflect this and the better you address the emotional side of the purchase the smaller the logic plays a part in the decision so the more you can charge!