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Making profit from your product or service is the ultimate goal right? But a lot of the time as a start-up or small business you can often lack confidence in your pricing and ability to pitch the quality of your work.
First things first, know your market, what’s the average price for your product or service in your market area? 2. How much do your competitors charge? See what your opposition is charging and why, you can then make a decision to match or beat them depending on the quality of service you provide. 3. Make sure all of your costs, direct and indirect are covered in your quote.
Here is a great place to start, remember the four P’s:-
It’s always good to know the value of your product or service and offer your customers a fair and respectable quote, keeping into consideration the quality of the service you will provide over the amount of time or effort required. Quality over quantity! This is what will bring your customers back. Keep your pricing clear and your quote simple, include a reference number that you can track, your business details, the job specifications with the total cost, a cost breakdown and terms and conditions. While this is important, it’s also worth noting that staying open minded and up to date is a must. Your prices may need to fluctuate from time to time depending on your competitors, the demand of your market or even a change in your customers.
If you have difficulty figuring out the quality of your pricing follow the Quality Pricing Model to point you in the right direction.
The golden rule is to be fair, consistent and transparent.
5 key pointers for quoting: