Are you charging the right amount?
How do you know what to charge for your service or product? How can you be sure that it is worth what you want it to be worth? How can you guarantee that you won’t alienate your potential customer base by setting your prices too high? It’s tough…but you can do it!
Worth It
You need to be worth the price that you charge your customer. If you aren’t really giving very much then you can’t really charge very much - if you do then no one will want to use you…
What you charge depends on the value that you give to your client. Therefore try and make your service or product more precious by providing greater value for their money that they wouldn’t be able to necessarily get anywhere else.
Charge Correctly
It is incredibly important to make sure that you charge your customers or clients correctly - if you charge too little then you will be working like a dog for practically nothing and the value of your services can actually drop because you’re considered cheap.
If you charge too much then you could find that no one wants to hire you or use your product because customers or clients can get it somewhere else for cheaper. If someone does want to use you then you will find yourself in a position where you have to match the charge to the customer with the value of the product which can be difficult or impossible.
How Will You Price Your Service/Product
You need to decide how you are going to price your product or service and express the value of your work? There are different ways of charging the customer or client;
• Per project/product
• Per hour
• Per separate package
• Per results
• Per task
People associate quality and value with price so you need to get it spot on - people think that a high price is indicative of a high quality product while a low price can make people think quality isn’t there.
Keep In Mind
When thinking about the price you will need to keep in mind the following;
• Market conditions
• Time consumed
• Client timescale
• Complexity
• Used and required recourses
• Competition prices
• Impact on the client
• Potential value for the client
Pricing is a difficult challenge that you need to get right. Spend some time over the process and make sure that your final decision reflects the value and worth of the product. You should look at using customer comment cards and questionnaires to make sure that customers agree with your pricing structure and if not then work with their comments.
Value For Money?
Did you have an issue when it came to pricing? Do you struggle to get your pricing right? Leave us a comment and let us know…
Our Random Articles
- Small businesses plan staff cuts in early 2012
- Unemployment rise – what does this mean for small businesses?
- The Mary Portas Review
- Experts Warn Small Firms of the Need to be More Aware of IT Security Risks
- SMEs Unprepared for New Pension Reforms
More Links
No Comment