Pricing as mentioned before can be tricky for businesses especially ones who are in the start-up process. Most new businesses have no benchmarks to compare or set goals in the first year. This does effect the pricing infrastructure. So here are some tricks of the trade that can help you manage your pricing challenges.
- Create a work flow sheet. A work sheet is lists down all your services, pricing, mark up columns and gives you a profit margin. This is essential for internal usage but also helps clients understand what services you represent. Most starts up fail to have a service sheet.
- Get client to expect price on quote. It is always good for clients to get in the habit of understanding your rates so this way you are not trading dollars for free services.
- Two screen process allows clients to understand the price point for each entity of your service. You can create such flow chats on excel.
- Customization Estimation It is sometimes easier for the quote to be customized based on the clients needs and wants.
- Break down your costs. It is essential to know the costs of running your business versus how much you are making.
Are you paying attention to such details?