Terrific students attend the classes I teach. They ask profound questions that “stretch” my knowledge and resources. When I teach a building a business foundation owner class, I’m usually asked, “How does someone price a product or service?” During a recent class, I promised to write down what’s in my head and send it to the students. And because of them, you now have it, too. In order to keep things simple, I’ll use “services” to mean both services and products in the list below.
1. Locate a trade association, organization or networking group whose specialty is your service. If none exists, find an association with a similar product. In general, associations can tell you the high-low and average prices charged by members. You can find some organizations listed in an article I wrote called “Network To Success”. Find the link at http://www.coachmaria.com/articles/
2. Trade/Business Journals and newspapers contain articles that may include prices. At least once a year, I see an article about my industry online or in a periodical that contains industry fees.
3. Ask your CPA for some ideas; after all, they deal with business owners’ finances all the time.
4. There are many career and employee guides that provide industry or job related prices. You can view my favorite resource, Occupational Handbook; online at http://www.bls.gov/oco/home.htm You’ll also find this book
at your Library’s career resources area. Also check the Labor Department and Employment Security Commission for resources and brochures that can assist you.
5. Many business owners place a pricing structure on their websites. Using the industry name, plus the word “rate” or “fees”, you can find those sites on the Internet.
But here’s the bottom line to pricing. The value or perceived value of your services or products highly determines the price that your ideal client will be willing to pay for your services or pricing. Make sure that you account for the value, just as companies like Nike, Nostrums, Starbucks, Tony Robbins, and others have, too.
(c) 10/20/2002 updated in 2011 Maria Marsala, Business Strategist, Executive Coach, and Speaker. We enable financial sector CEOs, presidents, and executives to find more clients, earn more, and affect the world in a big way. Learn more about pricing your service and products at http://www.CorporateSecretsMarketing.com/eyb/tele/pricing.html OR join the EYB Nation where you’ll get complimentary membership that brings you articles, audios and our newsletter at http://www.ElevatingYourBusiness.com