As a service provider I get this question many times, to mention pricing or not? The reality is there are pro’s and cons to having a packaged price to your services. While some customers love to look at your pricing page before they make a buying decision others prefer to receive a quotation. The question is are you doing your business a favour by advertising your prices online?
The disadvantage of having a pricing package are as follows
- Charging less when a client is willing to pay more
- Charging more than a clients budget
- Losing out on customers because they make a decision without getting to see what you have to offer
- Taking shortcuts because you are trying to meet your costs
- Not delivering on a client return on investment
- Not meeting a company profit margin
- Having your competitors pricing you out.
While some service providers prefer using a set pricing the recent trend is pricing out your services on a sheet and customizing a package after meeting with a client. It is always good to look at budget, time and resources when giving out pricing. You also have to factor in the type of industry and how much research you are putting into the client. Part of the challenge with pricing is many service providers standardize everything without considering time spent on the add ons, or extra time put in.
After a meeting where you have customized a package for your customer you can then leverage this package to
- Offer full payment discounts
- Increase cost for the use of fee payment options versus lower costs for no fee payment options
- Leveraging the type of payment options
- Recurring or monthly billing fees
- Up selling other services
The best way to start off on a pricing sheet is to identify on all the services you offer and what is the cost for you to fulfil this cost. After all factors for your time is considered you mark up the costs to what you evaluate you are worth. Some service providers will customize rates for 3 different client budgets and adjust their pricing rates based on the client budget. At the end of the day any pricing route you take will have its ups and downs. Its all about finding that sweet spot. Do you advertise your rates? Are you hurting your business when you do not publish your rates?