How to price a service without compromising your margin
It’s not about being self-centered. It’s about understanding your strengths and charging a fair price for the service you’ve developed with a lot of passion, commitment, education and effort.
Of course, the value, quality and impact that this service must price a service have on your au price a service dience must be superior. There can be no room for mediocrity here!
How to price a service without compromising your margin
With this article you will learn how to price a service without compromising your margin.
Our CEO, Vilma Núñez, frequently insists on this: “It doesn’t matter how much you charge… You can always have good margins.”
You don’t have to reinvent the wheel when it comes to diversifying your serv namibia consumer mobile number list ice businesses, much less focus solely on high-ticket solutions .
The real challenge is to always think high-margin . That way, you can offer services for $100 or $3,000, while still making a huge profit.
Improving the margins of your services is extremely important. If you a efficient business management: from spreadsheet re just starting out in the world of consulting, advising, mentoring, conferences or coaching, you need to understand this as soon as possible.
Knowing how to price a service will save you a lot of headaches, and at the sam bz lists e time, it will prevent your cash flow from being affected.
3 key concepts for setting good prices
We are talking about:
Cost: It is anchored to your production, productive hours, etc.
Value: It is not determined by you, but by your client.
Price: The formula is simple: Cost + the profit margin you have estimated for your services.
If you offer services, you need to calculate the hourly cost of your work accurately and consistently.
Let’s say you sell 1:1 consulting. Do you know for sure what the cost of that solution is?
If you are not sure, or you want to brush up on your knowledge, pay attention to this information:
Define your hourly rate to strategize, plan and implement.
Why? Although some entrepreneurs refuse to accept it, the hours spent on planning and execution cost less than those invested in strategies.
You can’t charge them the same way, and if you do, your customers will end up getting ripped off! It may sound harsh, but that’s the truth.
Vilma explains it clearly: “I charge $2,000 per hour as a consultant, but when I implement my hourly cost goes down… Investing hours in creating slides is not the same as someone hiring me to be their consultant.”