Five Tips For Setting Your Prices
One of the most common dilemmas entrepreneurs who are starting out face is the confusion over how much to charge their clients. As a business owner, you neither wanna come across as too cheap nor overly expensive. Moreover, you understand the value of the products or services you offer, which makes it imperative to put a lot of thought into how you price what you offer.
At Morley Chartered Professional Accountant, we aim to help businesses understand the value they add and prepare a pricing structure to reflect the quality they provide. If you’re a new business and aren’t sure about how to go about, we have put together a list of five aspects to consider while setting your prices.
Tip #1: Value your services.
Make a comprehensive list of everything you do for your customers and price each service. Most business owners offer all their services to all their clients at the same basic rate. This is a mistake because price-sensitive clients want the basics and others don’t care about the price as they want everything you can do for them. Use your list for discussions with clients about what they want.
Tip #2: Develop your primary service offering.
Put yourself in your customer’s shoes and pick those services that a price sensitive customer would choose to get a basic service from you and list that as your primary service offering.
Tip #3: Create service packages.
Bundle some of your services in packages, give the packages a name and price each package separately.
Tip #4: Create a pricing reference for your clients.
Most people have no clue what something should cost, and by giving them a reference point, you are creating a price comparative in their mind and then it will easier for them to make up their mind to buy your services.
Tip #5: Negotiate with your clients.
Use your list of services to negotiate the services your customer wants before discussing the price. This way you can always remove some services if your client wants to pay less.
As professional accountants in Gravenhurst and Barrie, ON, at Morley Chartered Professional Accountant, we pride ourselves on our ability to build your business and offer three tiers of service to meet all our clients’ business needs. Right from essential minimum service requirements, to complete professional service and our freedom premium service that is an extensive list of services to assist in your business growth and profitability and allows you to improve your personal freedom. We also offer a freedom lite service that is only for the first two years of a startup.