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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 unsure what they should ask people to spend doing business with you. This is especially challenging if you are a new business owner and you do not have even one customer yet.
There are a lot of different analytical methods to figure out a proper pricing strategy. There are four tips that you can follow to get the process started. However, this is not an exact science, anyway.
Price of Service:
Let’s assume that the exact price for your product or service is $10. The most important thing that you have to consider now is the charges. There are 3 aspects to 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 it will increase or decrease corresponding to the number of things it offers.
- Labor means 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 essential to consider all of these expenses on a service price list. So, for instance, in the above $10 example, the overhead was $2 a month, materials were $2 per unit, and labor was $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 versus their competition to see your competitive advantage. If your competitor is also providing the services at the same rate. But, if the quality of your services is better, then perhaps you can charge $11. If worse than the competitor, you can charge $9.
Whatever the difference in quality is, that becomes a nice little reference point in comparison to the competition.
Free Service Price List Templates:
Check out these valuable Free Service Price List Templates to help you out in preparing your 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 at our products and services, then we can craft the experience for just that kind of customer for whom we can charge more. However, if you sell your products and services to everyone, then you 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. Over time, you can make small adjustments to find the perfect charges to make your service price list.
