In order to draw in the correct kind of clients after you launch your own freelance or service business, it is a good idea to educate yourself on psychological pricing. You could be tempted to set your prices cheap to attract some clients, but doing so could result in nothing but “bargain basement clientele.”
It might also suggest that despite having a large number of devoted customers, you are forced to offer your services at a low price and find it difficult to justify raising it.
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Understanding Your Value and That of Your Time
The foundation of any business is pricing. There are many ways to set costs, but the value of your time and expertise should be your starting point. You don’t want to price your services too low because that would make you appear inferior to competing providers.
If you are going to charge more, you must provide a compelling argument for why you are deserving of the extra cash. This might support the development of your brand and brand loyalty.
The total costs associated with performing the work should be included in your final quotation. Keep a time log and all related receipts for every job.
Rule of Seven or Nine
Try to incorporate prices with 7s or 9s in them into your rate card as these are typically more appealing than prices with other digits.
Bundling
Most likely, you’ll provide a variety of services. Take into account bundling for a little cheaper cost but better perceived value. This may increase the average dollar amount each consumer spends.
Recurring packages
In some circumstances, you might think about charging a set monthly price for a specific service. For instance, charging by the hour would not make sense if you regularly post content to a WordPress site; instead, you should negotiate a package contract that specifies the details of the task in advance.
Packages in silver, gold, and platinum
Added options include tiered bundles. Basic services would be the silver, and you would add as you made ever-more unique bundles packed with extras. Just keep in mind the prices you can charge for each separately and the kinds of restrictions you can impose on the packages.
Repeat Clients
Setting boundaries for the packages is necessary since recurring business from satisfied clients is the only way your company can grow.
Added value
A customized website, portal, or membership site with relevant information is one way some service providers generate value for their clients. Uploading contracts, descriptions of your services, and other information that clients will need to know when dealing with you is a smart idea here. Additionally, you can provide unique content, news and information specific to a particular specialty, etc.
Other helpful materials include planners, frequently asked questions (FAQs), templates, cheat sheets, and other documents that don’t cost much to produce but can help you stand out from the competition and keep top clients coming back for more.
Parallel Products
If you are having trouble attracting consumers, thoroughly consider what other businesses supplying the same service are offering, then attempt to outperform them by at least one. You may be confident that the abilities are in demand and that you are positioning yourself as at least as good as or even superior to your competitors.
To get what you want, get high
If you wish to charge $27 an hour for your services, set the pricing at $57 and then cut it to $27. Customers will think they are receiving a terrific deal.
It might be challenging to keep from selling oneself short, particularly if you’re just getting started. Make use of these suggestions to make sure you are paid fairly.
