Pricing
For the past few day’s we’ve been having some fun with pricing a few new services we’ve been asked for.
Please take the word ‘fun’ in there are a largely sarcastic comment – put simply I HATE MONEY!
This of course doesn’t help the requirement for accurate pricing
So, as we’ve decided that the MD doesn’t like money (and especially the lack of it) we look to other means of pricing our services.
Mostly this comes down to a couple of simple rules:
1. What are our costs for any given services
2. What (if at all) are our competitors charging for a similar service (though obviously not as good as ours
)
With these in mind, my analytical mind kicks in and I’ve got something to work with, in my case this is a basic necessity!
Costing in our company is fairly straight forward:
How much did/do we buy in at?
How much does it cost us to do it?
Now those both seem to be simple questions on the face of it, but you must remember to cost everything – your office costs money to run after all!
So I’ve been trawling through reams of numbers in search of info to assist in the quest, and factoring in things like “Return on Investment” and “Break even points” etc…
The second is a much harder question to answer, as most competitors know who you are and wont tell you their prices. The web is your greatest friend here, as well as your mates and their acting skills (I’ll not add any more info here, I’m sure you know why!
)
Suffice to say we got there in the end, knowing we a going to make a profit and are still competitive on the products offered
Now we just have to sell them!
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