Price your services incorrectly and you stand to lose a lot!!
If you’re starting your own service based business, one of the most important decisions you’ll have to make is how to set your pricing – should you charge what your competitors do, offer an hourly rate, or maybe just enough to keep the lights on?
This question is important for 2 reasons; firstly, it will determine to a large extent your profitability (obvious I know, stay with me here). Secondly, how much you charge will determine your place in the marketplace – do you want to be a high-end marketing consultant that only has 4 clients, or a no frills & small bills operator with a 50 strong client base?
These are some of the more common pricing structures, along with their pros and cons: