How To Determine Pricing For Services that you are providing?
Are you a consultant? Are you a coach? or Are you a Service Provider? But do not know about How To Determine Pricing For Services?
You could be a Social Media Marketer or a WordPress Developer, but you are not sure about the price that you should charge to your client or customer. You are not sure on How To Determine Pricing For Services that you provide? or how do you package your expertise in a way to fill the market gap and offer the service?
Today, I am going to share a few tips and tricks that can hack your growth. I am going to share a few stuff that will make you calculate the price of a service that you are providing, with ease. I am also going to share what common people do which leads toward low income and what smart people do that make them Richie Rich in less span.
So, in the marketplace when people want to price their services, here are a few things that they do to calculate the price of a service, it especially happens when they get started.
Common Mistake People Make:
- People when providing services and they know how to calculate the price, What amount they should charge? They move into the marketplace (Freelancing Websites) and make an analysis of the current prices against the services. They note down the highest prices and the lowest prices, later they try to fix themselves somewhere in between.
- People while analysis, do not differentiate between the service they want to provide and the services that other people are providing.
- Even a macro niche service contains thousands of micro niche services, a person can not provide all of them. Most of the time, the analysis they acquire is the part of another Micro Niche that lies under the umbrella of the same Macro Niche. For example, Copy Writing services include multiple micro niches copywriting services, and almost all of them are different from each other that should be priced differently.
Above are the common mistakes that can easily ruin your calculation and analysis of How To Determine Pricing For Services that you should charge. Mistakenly, most of us start to compete on the base of prices but not on the base of values. That is not a very smart thing to do!!
Why is it not a smart thing to do?
It is because you are competing on the base of the price but not on the base of the value of your service. Let’s talk about copywriting services, before diving deep into it, I want you to know that what dictates your service price is the supply and demand.
What do you need to do then and How To Determine Pricing For Services?
- The first thing that you need to look into is that what are you doing? What are your services about? As we all know that CopyWriting service is a vast macro niche, and no one can be extremely confident while writing about every stuff, so you need to figure out the micro niche under the umbrella of this Macro Niche that you have expertise on.
- Then figure out either you are unique enough? Are you the only person providing this service? Who is your competitor in this specific Micro Niche that you are about to work on?
- Are you uniquely qualified to solve this problem for your client?
- So if you are a copywriter, do not try to be a copywriter for all, that is not going to work for you. Be a copywriter for special purpose/people/services.
Let’s take an example, so if you are going to be a copywriter for an Event Manager or an Event Blogger, so you should charge high. Why?? As it is because Event Bloggers or Event Managers is going to get high results from the content that you are going to provide them. In a case, Event Bloggers generates 10,000’s of $$ online and an Event Manager if successfully sold 100’s of seats, it will generate them huge money. So you can charge them about 10% of it. That is the proper way of pricing your service on the base of value, rather than aimlessly pricing your service on the base of what marketplace.
Price Or Value?
You need to figure out when you are going to price your service that what are the values that you are providing with it. Do not focus on what are you just providing, as it will remain just a piece of content (CopyWriting Service), but what is the value that you are providing?
Is your provided service going to return something to your client? As an example, if an Event Blogger generating 10,000$ after your service, then charging him 1000$ will totally justify it as only the 10% of it will go into your pocket and even the client wouldn’t mind it.
You need to figure out, how you are competing the value you are providing over the service you are providing to help yourself.
Selling Results Or Selling Services?
Most of us never focus on the difference between the selling result and the selling service. Always try to price your service on the basis of results that you are going to provide. It is what matters in the end, that what you have generated to your client in against of the service that you have provided.
Pricing on the basis of an Hour Job or years of Experience?
There is another thing that you need to focus on while pricing your service. Most of our clients always focus on the other side of the image, when they start to talk about the time that is going to be served on the service that you are providing. Always make them understand that it is not an hour that is going to be served on the project or the service, but it is years of experience that you are going to apply on that service effectively in an hour. Always price your service on the basis of the experience that you are going to accumulate in the specified time interval.
Focus on learning, how to make your client accept the fact that their money is important. Their time is important as well, what if they are not going to use your service, how can it affect them over the time period, are they risking their money? Are the risking the results that they will get after your service? Or even their own money that they are going to risk on, using someone’s else services but not yours.
So when you successfully combined the results of 10,000$ with the price of service of 1000$ only. Your client will never be in fear to pay you a 1000$ with a possible huge tip as well.
It is not the time that you are going to spend on the service but it is always the results that you are going to provide them. And to price, your services, always focus on the results that the client will get.
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