4 “Must Know” Tips for Pricing Your Services
Sunday, January 9th, 2011One of the worst moments in the life of the business owner is the moment of silence between when your contribution rate to a potential customer and their response. It is true that only a second pass, but it can seem an eternity.
You know the feeling. They work, the project, the new customer and almost always more work than I thought, if you sign for the task. Make sure you know that your value and the customer in advance.
1. Know your values.
If you charge customers per hour, as you know what they want? Have you picked a number out of thin air? What was your reasoning?
a) Decide what you want your paycheck. How many of you?
b) adding a sub-contractor costs may have. This is your ‘total workforce.
c) on the list, then add all your costs . total wage costs advertising, promotion, control, hire, self-employment, deliveries, etc. This is your
d) review total expenditure not to total employment.
e) Add you have a target profit for your company.
f) Drawings (d) and (E) corresponds to the total revenue required.
g) the total income required by the number of billable hours of the year. Note that you are billing 40 hours / week. The result is the amount you need to be paid on your earnings target.
If you bill per hour, the time to finish the previous year and, if necessary, increase your prices accordingly.
2. No haggling.
It can be difficult when you only have a few customers, or if you need more money, but also what ever you do, not with customers and potential customers to haggle over their prices.
You can at a flea market sales. You can negotiate the price for a house. You can exchange (also known as negotiations known) for the corporate work for wages. As a freelancer, you should not haggle over the price. This immediately reduces the perceived value to this person and prepare a list of all doubt as to puncture.
Make sure customers understand the benefits they receive from letting you. They do not provide service to offer you a solution for them.
The difference is that the solutions people most about what services value. Whenever you discuss the price with a potential customer, focus on the benefits, solutions that will result in hiring.
Do you want more free time? Your company sees higher profits or customers? Discover the benefits and speak!
4. Be ready to say goodbye.
Not everyone will accept the conditions. Deal with it. They were not intended to take their customers anyway, only time, you can use for quality customer service. Save your time and energy for those who know its value? are both happier and more productive.
Service pricing is one of the most exciting things you do as an entrepreneur. Make sure to take the time to the project in hand shortly before the impulsive contribution to a price? To save time and frustration on the road.