Top 7 Ways To Know Your Price Is Right For Your Services

Ezine Article - Business Articles

By Kimberly Reddington

Article Tags:work from home business, service business, pricing your services, what to charge, small business, entrepreneur, success

Many entrepreneurs and solo professionals continually ask whether they can ask for more money when selling their services. It's common to wonder if you could or should charge more for your services. How do you know if you can charge more? How do you know if you are charging too much or too little? The following is a list that I use to find out if my rates are competitive for a certain service or project.

1. A high percentage of interested customers are purchasing your service.


If your price is too high, you might be noticing a higher than normal percentage of prospects running elsewhere. Likewise, if your price is too low, they might feel that they will be getting higher quality from your competitors.

2. A small percentage of customers are complaining about the price and want to negotiate.

Not everyone will agree with your price. People like to negotiate for a better price. If too many clients are complaining, then it's time to lower your price. If too many clients are thinking your price seems fair, then you might try experimenting with higher rates.

3. Your target market can afford and is willing to pay the price you are suggesting.

If you are working primarily with corporations, you can charge much more. Larger companies have larger budgets and often will pay more in exchange for better quality services. Individuals or smaller companies have a smaller budget, so you may have to charge lower rates.

4. You are noticing that other service providers in your field are charging similar price ranges.

Always research your competitors. What are they charging? Is your knowledge and quality of work comparable to theirs?

5. You are making a profit on every project.

Keep in mind how much it will cost in time and expenses. If you are putting in time and effort, you want to make sure that your profits will reflect that.

6. Your clients keep coming back for more.

If your clients tend to come back for more, then you know they feel the price is well worth the quality of work they are receiving from you. If most of your clients are one-time clients, it's time to figure out how to get some of them to keep coming back.

7. Your income is increasing as your knowledge in the area of service is increasing.

Your price should always reflect the amount of knowledge you are bringing to the table, as well as the quality of your work. You don't want to short-change yourself, if you have been in business for while or really know your stuff.

Remember that it is important to continually assess the prices of your services. Make sure you are remaining competitive and that your rates reflect your knowledge, experience and quality of your work.

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