But the starting point must be self belief, supported by confidence, trust, and the viability of what we have created, to price. <\/strong><\/p>\n And it’s important to understand the type of service\/product you offer, your industry, your target market, and your competitors.<\/p>\n So in advance of your pricing make sure you have a SWOT analysed Business Model.\u00a0 If not, here are link to articles on both recommended reads before you dive into pricing.<\/strong><\/p>\n However, there are a few general principles that you can follow to help you determine a fair and profitable price for your services:<\/p>\n Calculate your costs<\/strong>.<\/strong>\u00a0This includes both your direct costs (such as the cost of materials and labour) and your indirect costs (such as overheads and marketing). Once you have a good understanding of your costs, you can start to think about how much you need to charge in order to cover your costs and make a profit.<\/p>\n Research your market<\/strong>.<\/strong>\u00a0Take a look at what your competitors are charging for similar services. You don’t want to price yourself too high or too low, so it’s important to be competitive. However, you should also keep in mind that the lowest price isn’t always the best way to attract customers. If you’re offering a high-quality service, you can justify charging a premium price.<\/p>\n Know your customers<\/strong>.<\/strong>\u00a0What are their needs and budget? How much are they willing to pay for your service? Once you understand your customers, you can better tailor your pricing strategy to their needs.<\/p>\n Consider your time invested<\/strong>.<\/strong>\u00a0How long did it take you to learn your craft.\u00a0 Do you have to keep up continual learning?\u00a0 How much time does it take you to deliver? If you’re spending a lot of time on each customer\/product, you need to make sure that you’re charging enough to compensate for your time.<\/p>\n Come up with a fair profit margin<\/strong>.<\/strong>\u00a0How much do you want to make on each service\/product? It’s important to set a profit margin that is fair to both you and your customers.\u00a0 And you have your health to factor in, if you work so hard you don\u2019t take a break or holiday, your service will suffer and so will you.<\/p>\n Your reputation.<\/strong>\u00a0 If you’ve already been selling, how has this been received?\u00a0 How are you perceived by experience, reputation, and quality of your work?\u00a0 What, if anything, do you want to change?\u00a0 And will this impact your visual and written messaging?<\/p>\n Once you’ve considered all of these factors, you can start to develop a pricing strategy.<\/p>\n There are a number of different strategies that you can use, such as:<\/p>\n Hourly Pricing<\/strong>:<\/strong>\u00a0Charge a fixed hourly rate for your services. This is a simple and straightforward pricing strategy, but it can be difficult to estimate how long each project will take, which can lead to undercharging or overcharging customers.<\/p>\n Project-based Pricing<\/strong>:<\/strong>\u00a0Charge a fixed price for each project. This is a good option for projects with a well-defined scope of work. However, it can be difficult to price projects accurately, especially if you’re new to the business.<\/p>\n Value-based Pricing<\/strong>:<\/strong>\u00a0Charge a price based on the value that your service provides to the customer. This is a more complex pricing strategy, but it can be very effective if you can accurately assess the value of your service to your customers.<\/p>\n Fixed Cost<\/strong>: cost remains the same despite volume or service i.e.. salaries, rent etc.<\/p>\n Variable Cost:<\/strong> varying according to service\/product (such as festivals \u2013 more sales = more staff etc.)<\/p>\n Scale:<\/strong> buying in bulk, costs falling as output rises<\/p>\n Scope:<\/strong> advantages may be that the larger you become you may still use the same marketing\/sales team size \u2026<\/p>\nPricing Strategy<\/h2>\n
What can impact your pricing<\/h2>\n
What you want to be know for<\/h2>\n