I quite often get asked how should I price my product should it be packages, should it be by the hourly rate, should it be by building other things of value into my base pricing?
Well I want to start with the basis of your pricing because if we don’t get this right we can’t build packages we can’t think about our hourly rates etc.
First of all break one piece of paper into three columns. The First Column is the service, the second column is the benefit to your customer or your prospect, and the third column is the scope of the service that you’re offering. For example if I was going to do the social media for someone that would be the name of the product as the service, the second aspect would be the benefits for the customer outsourcing that to me to do that for them and thirdly, then I’d have the scope of service. This may be in terms of a content plan, giving them some ideas, putting the posts together, designing the artwork etc.
Once we’ve got those three columns we can then think about a price per service. Now the price is based on the value to the customer (column two) and the scope of the service (column three) in terms of what it is that you’re delivering so you can then look at that and say ok what’s the value and then what are the specific costs to me in terms of delivering that service. Now you’ve got a base price that you may want to flex with a price based on the size of organisation you are supporting or the complexity of the requirement For example if you were writing a Blog for somebody, would it be that you would go back for two adjustments of that blog and would you be writing the blog or would you just be reviewing that blog? So considering what it is in terms of that scope and how that may flex will give you different pricing options and again you may have a menu option per service that you’re offering.
If you think about these factors then you can think about the basis of your price. You’ll get some base pricing that you could build into your forecast to make sure that your capacity delivers the income that you desire, based on that pricing model. If it does then you can start to think about how you then present those prices in terms of positioning. Do I package them? Do I offer them as menus? are they value priced? or do I just steer them on a the basis of the hourly rate? or do I just have a conversation and they pick from a menu so I can then make a proposal.
There are loads of considerations around pricing but I hope that, as always, this has been useful in helping you to think about you business and in this instance the basis of your pricing.