How to price a product or service

by | Nov 11, 2021 | 0 comments

Pricing your product or service shouldn't be guesswork

Pricing your business can be a tricky task – endless hours can be spent determining whether the right price has been set for your precious product or service.

For some, developing a pricing strategy may seem like wasted time. But I promise you it will be totally worth it in the long run. I mean, who doesn’t want to be rewarded correctly for their time and efforts?!

Many small businesses owners tend to feel stuck when with their pricing. It can seem like a daunting task, and with it comes a bit of reluctance. Understandable if you ask me!

When I decided on my pricing, I spent a considerable amount of time determining the most effective pricing strategy. I started by working backward from what profit I wanted to see. From there, I considered my costs and the time required to complete the task.

And voila! The guide to pricing for IM Business Solutions was born. Might I add, this strategy has been used ever since…whenever a new service is introduced at IM Biz or a client asks for help, this is my go-to approach.

When forming your strategy, pricing should always, and I stress ALWAYS reflect:
~ The time and effort required to deliver the desired outcome
~ Your skills, knowledge, experience, and any relevant qualifications
~ The costs associated with providing your product/service
~ The value that your product or service can deliver

One common mistake I see a lot is undercharging *cue instant regret*. When this happens, it can often lead to a lot of awkward conversations, difficult discussions, and sometimes, unnecessary worry.

I hate to break it to you, but it can have a disastrous impact on the financial health of your biz. Whether it be a one-off sale or an ongoing package, never sell yourself short!

If you are worried that you are costing your business money (eeeek), go ahead and ask yourself the following questions:
1. How did you decide what to charge?
2. Did you consider what profit you would like to make?
3. What about your costs? Have they been covered?

Still unsure if you are hitting or missing the mark when it comes to pricing? Let’s chat! Contact IM Business Solutions in Perth today.

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