Setting prices can be nuanced work. It all depends on different factors, from cost of materials to market demand. If the prices in your area are a mystery to you, Thumbtack’s pricing data might be helpful. You can check out average local and national prices in your industry.
“You need to be priced competitively. Often clients have a number in mind, so knowing that number and what your competition will charge is important for picking a reasonable rate,” says Top Pro resume writer Tiffany Cruz.
2. Raise your prices as you build your business.
Are you just getting started? Or has your company been in the game for awhile? The stage of your business matters. Even if you provide amazing service, customers won’t pay premium prices for a pro that has no reviews or established reputation.
“In the beginning I figured that offering a high-quality service meant charging top rate prices. Of course, we didn’t have any jobs under our belt so that wasn’t going to happen. I brought the price down to a reasonable rate to get my name out there and business has been growing ever since,” says Jonathan Johnson, whose photo booth company has been hired 200+ times since opening its doors on Thumbtack.
If you’re still building your reviews, charge at a lower rate, like Jonathan. As your company grows, raise your prices. You may worry about losing customers when you begin charging more, but remember that new prices can open you up to a whole pool of potential clients who will pay more for quality service.
3. Be transparent from the start.
Talking about money can be awkward. But the sooner you discuss prices with your customer, the easier the conversation becomes. Top Pro house cleaner Paige Rounds schedules an “onboarding call” every time she hears from a customer. The 10-minute chat covers timing, products and price.
“We make sure [everything] is clear to the customer before we schedule an appointment. We don’t want to show up expecting one number only to discover they expect something totally different,” says Paige.
Another way to be transparent about prices is to get it down in writing: a pdf of an estimate or a standard service agreement. Or an email, at the very least. As long as it’s something that a customer can refer back to in case there’s any confusion over price.
What are your best pricing tips? Tell us in the comments.