Sitting in Starbucks this morning contemplating how businesses price their services. This is always a tough one to nail down, since you’re fighting the unending battle between two of the great entrepreneurial motivators — fear and greed. Fear, as in:
“If my prices are too high I’ll never get another customer,”
and greed as in:
“Am I charging enough to cover my expenses? Could I charge more?”
Thanks to Lissa Duty, I read a good article this morning on that very topic. It includes three great tips for deciding on your pricing model that every service business would do well to follow. I’d actually stumbled across these axioms on my own over the years and can attest to their efficacy, as well as their ulcer-reducing capabilities.
The bottom line message is to limit your own time wasting by publicizing your rates in the form of prepackaged services, and do a bang-up job of selling your expertise. True, the casual shoppers and those who focus solely on price will be able to browse and move on, but are those the customers you really want to have? Wouldn’t you rather have quality customers who you like to work with, who recognize your worth and the value you bring to their business?
I know I would.