7 ways to help you decide on your pricing
A lot of people are struggling with deciding on prices for products and services. Some are scared to go too high and others don’t want to charge too little.
Here are some good metrics to base your pricing on.
Your time and effort
This is the most obvious and basic. What is the point of you doing the work if you aren’t going to receive anything for it?
Material costs and fees
You don’t want to waste your efforts and lose money. If it costs anything for materials or you get fees for something like the software you work with you definitely have to add that into your pricing.
Business expenses
The business overall expenses you have should be accounted for as well. If it costs money just to keep your business going, you obviously need to profit to keep it up.
The value you’re providing
When you know that you’re really benefiting your audience and providing value it shouldn’t be hard to sell something you believe in. You know how much work you really put into your craft.
Competitor and market prices
One way if you still aren’t comfortable is to just look at what others in your industry are charging. It should give you a good enough metric to know the average you aim for.
How much you expect to sell
When you know something is going to sell pretty well you can be laxer in your pricing. It’s when you need to really hustle that it’s more complex when you need to set prices.
What you feel comfortable with/experiments
At the end of the day, you can do whatever you want. You can just charge whatever feels comfortable to you, and you can just test things out. Just go ahead and see what happens.
It’s good to base your prices on the effort, time, and costs of what it takes to get the work done. You can decide whether you prefer to take a good value (such as Walmart) or premium (such as Apple) pricing model depending on your brand.
