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A Service Price List is a list that shows the price range of the goods and services provided by a company, firm, institution etc. It is very important to make a proper service price list by carefully evaluating the cost that can generate enough profit for you. A guide to this is given below.
What you should charge for your Services?
This is a very common problem for small business owners. They are not quite sure what they should ask people to spend in doing business with you. This especially challenging if you are new business owner and you do not have even one customer yet.
There are a lot of different analytical deep methods to figure out a proper pricing strategy. There are four tips that you can follow to get the process start. However, this not an exact science anyway.
Price of Service:
Let’s assume that the exact price for your product or service $10. The most important thing that you have to consider now is the charges. There are 3 aspects of the charges or price:
- Overhead: These are the things you are going to spend money on regardless of the products and services you make or sell. These are things, like, rent, utilities etc.
- Materials: This is a variable expense. This means that it will increase or decrease corresponding with the number of things it will offer.
- Labor: It means that you have hired someone else to do your work. You have to pay them for that time to make the product or to deliver that service to someone.
Therefore, it is very important to consider all of these expenses in a service price list. So, for instance, in the above $10 example, the overhead was $2 a month, materials are $2 per unit and labor is $2 per person as well. Then our profit would be $4 per unit if the product or service is provided at $8, $6 and $2, respectively.
Quality of Service:
One must consider the quality of their product or service verses their competition to see the competitive advantage that you have. If your competitor is also providing the services at the same rate. But, the quality of your services is better, then perhaps, you can charge at $11. If worse than the competitor, you can charge at $9.
Whatever the difference in quality is, that becomes a nice little reference point in comparison to competition.
Free Service Price List Templates:
Check out these valuable Free Service Price List Templates to help you out in preparing your own price list.
Target to Most Valuable Customer:
The most valuable customer is the profile of that customer who is going to buy your products and services. If we are targeted in our products and services, then we can craft the experience for just that kind of customer whom we can actually charge more. However, if you sell your products and services to everyone then we are competing with everyone. This does not work as well as in the other case.
Pricing, as you can now tell, is not an exact science. It is not perfect, but, hopefully this article will give you a starting point to begin selling your products and services. Overtime, you can make small adjustments to find the perfect charges to make your service price list.