Pricing 101 for Service-Providers

Are you a service-provider struggling to price your services? Do you feel like you keep underquoting? Is scope-creep affecting your customer relationships?

Amazing CEO accelerates CEOs and Key Executives with business consulting, coaching and speaking services. We’ve helped entrepreneurs across the country to create new packages and begin growing their businesses. 

Appropriately pricing your services can feel like a daunting task. You might be undervaluing your services and not charging market rates. This is all part of the learning curve.

When you are first starting your business, it is okay to price low in order to build up a portfolio. However, there will come a time when the demand for your time increases which will increase your value. Warren Buffet once said, “Price is what you pay. Value is what you get.” Ensure you are providing value to your ideal client and entering the marketplace at the appropriate level.

Setting targets for your prices is simpler than you think. Ask yourself how much revenue you want to generate in a month. Then, divide by your ideal number of clients. Now, create packages that fulfill this price and that would add value to your target audience. Consider these six steps as you grow your service company:

1. Your prices. What services do you provide? How are these priced as deliverables? Try to keep your hourly rate to yourself and sell by the finished deliverable.
2. Your packages. How can you turn these deliverables into packaged services that can be sold over a period of 3-6 months? This is how you create recurring monthly revenue.
3. Your timeline. What is the scope of the project? When should your client expect your deliverables? How will you manage their expectations?
4. Your communication. How accessible will you be to your clients? Do you prefer email communication and setting appointments through Zoom? Will you charge extra for phone/text communication or availability on weekends?
5. Your payment terms. What do they need to pay you? Will you bill a deposit and the rest upon completion? Will you bill on a bi-weekly or monthly basis? What service will you use to provide your invoices?
6. Your agreements. What can you promise your clients to alleviate their fears of working with you? How can they trust that you will get the job done right?

Pricing is an art form that gets better with practice. Some of your fees can be billed as flat-fee deliverables, some might require a variable hourly rate or a variation of both. Just remember, it’s always easier to set your prices high then discount rather than raising your prices as you go along. For more business tips, please visit www.AmazingCEO.com to learn more.