Pricing Your Services

Pricing Your Services

Pricing Your Services

There is so much information about your service in your fees. Think of it, your pricing determines the type of clients attracted — size of organization, professionalism, investing or cost-cutting, quality-conscious or quantity-driven. Your pricing is also an indicator to any interested buyer about your level of service, expertise and experience, prior to buying. Think about it, does the lowest bidder instill confidence? The old adage that you get what you pay for holds true.

Cost-Based Pricing

Cost-Based Pricing

Competition-Based Pricing

Market-Based Pricing

Market-Based Pricing

Value-Based Pricing

Value-Based Pricing

There is no right or wrong in determining which pricing model works best for you. Personally, I am gravitating towards serring a value-based service fee whenever possible. If, however, your service is part of a larger, overarching, project or programme at your client’s organization and the actual duration and resources required cannot be easily determined, you may be asked to provide a cost breakdown by time and resources. This is often the case for annual maintenance contracts or software development projects.

In those cases, your service is a commodity and a mix of cost-based pricing and competition or market-based pricing is more optimal. Typically ally this is the model many agencies and consulting companies are using.

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Markus Abraham

Markus Abraham

I am a consultant and a business owner and the privilege of working with multinational blue-chips as well as small startups, generating a wealth of experience along the way. And I want to share. I am writing about strategy, innovation, business purpose, all things digital and performance. If you want to know more about me, please visit my about page. If you are new to this blog, start here. If you think, you could benefit off hiring me as your consultant, I have a dedicated page to give you more information about how we can work together.