Pricing has been a constant battle for many service providers. In fact most startup companies struggle between offering competitive rates while trying to deliver quality services. A trending occurrence is the ever increasing use of tier or platform pricing to cater to different audiences or markets.
There is a unique systems where you can offer multiple rates depending on your audience market. A good example is a service provider who will cater to small business, mid size business and corporate clients. The hours and service increase if the organization is bigger and in turn so are the rates.
A 3 tier pricing can accommodate different budgets and keeps your business open to different entities of customers. Creating multiple payment options can help you capitalize on a market that might be untapped in your niche. Its important to identify the following when setting a tier pricing:
- Cost for your overall service
- Markup percentages
- Time spent on service
- Competitor rates
- Profit Margin
- Hourly Rates
The more information you have on your service, the easier it is to evaluate if you can accommodate multiple budgets.