How to Price a Service. When anyone opens a new business in which they offer a service, they have to decide how much they will charge for it. Sometimes this is tricky, because you don't want to set your prices too high or too low. Follow these steps to price your service.
Find out what your competitors charge, and what they offer at that price. Your goal is to provide a better value at a competitive price. You can sometimes even have the highest price in your area, but your service has to have the highest value at the same time.
Understand that while you do need to set rates that are competitive than other businesses that offer the same service, don't set your rates much lower. Five to ten percent is good in most cases. It's not too much, but enough to bring some people who want to save money your way.
Remember that while people want to save money, they still expect to pay for a quality service. Therefore, if your prices are too low, customers are going to wonder if you're any good at what you do.
Make sure that you will make a decent profit considering your expenses and the time you use to provide your service. Remember also that you should price your service to include a small profit with which to grow your business further.
Be prepared to change your prices if needed. You may find that you aren't attracting enough customers because your prices are either too low or too high. If you have plenty of customers, then your prices are probably set just right.