Powerful Strategies You Can Use to Price Your Services
Pricing services is one of the main challenges that every service provider encounters. That is if you are in it for keeps. Offering the best services will not be the only thing that your clients consider. Once you have learnt how to set prices, it will make a major difference for your business. It is how you can stay competitive while still charging your worth. Here are some top winning strategies on pricing your services.
The first thing you should do is to set an hourly rate. That means that you shall need to carry out some research to determine a suitable hourly rate. Charging any project then becomes so much easier as you can be able to determine the price based on how long the project shall take. It is best to keep this rate to yourself, for the sake of your calculations, rather than alerting your clients on it. Before saying anything to your clients about the charges, have a clear understanding of the undertakings of the project first. See if you can establish if the project will be an ongoing project or a one-time thing. What is the budget that the client has set aside for this project? You can then be able to determine whether the client will be paying you your worth or not based on the hourly time. You are on your way to setting up the best recurrent payment system for your clients while at it too.
Something else you can do, add padding. It is easy to calculate the service rate once you have established an hourly rate. After you have worked out that total rate, you will need to add padding by marking up the total rate. Here you will need to mark up the total rate by about 25-50{a6f67836f830dda984823a8aba8034ee1ad8d1c5a4cfb5f95e93ddc537953bfc}. This padding is the trick to stay in business even when overheads and additional expenses are weighing the project down. You may not get everything right at the first go and underestimation may occur. To make sure that you get paid on time and as agreed, work out the best recurring payment system for your client.
You should also know your clients well. Learn more about your customers so that you can figure out the best rates for them and the best recurring payment system for them. It is by doing this that you can then set up some ways that will ensure that you get paid frequently by the client and the best recurring payment system that works for them.
Track the hours too because every second that is unaccounted for is money lost. You can look at how to track these hours and incorporate the same in the best recurring payment system you have for the client.