Digital Rebel

Pricing Tips

As a business growth strategist I am constantly asked to helped service providers with their pricing and packaging. I find myself surprised at how many essential items that are constantly overlooked when setting a price point. In fact there are certain stages that very crucial when setting up a proper pricing structure.

When starting out there are three common factors to consider.

  • The cost to provide a service or product. This includes the labor, time and resources put together.
  • The cost of your time as a service provider. This can also be benchmarked per industry depending on the service you offer.
  • The mark up margin after evaluating your competitors and the value they offer.

Once your mark up is created you can identify your profit margin.

There are a few other pointer to consider when determining price points:

  • If you are going to pitch higher always remember to educate your customers on the value you offer
  • If you pitch low to beat out the competition this can also have negative consequences
  • Pay attention to the competition and the value they offer
  • Identify and research the industry you are in.

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