Ok so you're all ready to launch your business. You've been fine tuning your product/service for quite some time and you're SO excited to finally get it out there and start making some $$. But then you start to second think whether your pricing is too high? too low? Will people see value in what you're offering? Will they think it's much too overpriced? Maybe you are not confident enough in the value of what you're offering. Or perhaps you're not sure if you're short changing yourself by pricing too low. We've been there. trust us. And over the past 10 years of running a photography business, we've learned a few things. We want to share four tips for you to consider when deciding what to charge for whatever service or product you're selling:
Review your Competition
Do your research. Look into other companies, both local and not, that are offering a similar/product service. Make sure that you are charging competitively as future clients will definitely be shopping around and comparing services and pricing guides. A good tip here is to have a bit of a range for your packages/services that a variety clients could choose from. You want to ensure that your pricing is not too low as others may then question your professionalism but also not too high if you do want to be booking clients steadily.
Evaluate your product quality
It's a good idea here, to put yourself in the customers shoes. Would you pay for your service/product? Would you be happy with the quality and share about the experience with others? If so, than chances that so would your customers! Think about what you would pay for your product/service and if you feel there is room for improvement or perhaps some equipment upgrades are necessary, maybe price accordingly for the time being and have goals in place to adjust in time.
Don't undervalue yourself
This is another mistake so many make (us included!!) when first starting out. If you truly have a great product/service to offer, than don't be afraid to charge what it's worth friend!! Believe in yourself and the fact that your service is GOOD and your time is valuable, so charge for it! It's also important to note that if you underprice yourself too much, you'll set your standard too low and people could view your business as a less professional option than competitive brands. You don't want this!
Re-evaluate your pricing a few times yearly
Experience is everything. And as your product/service continues to improve as you learn and grow yourself but also purchase higher quality equipment etc., you should re-consider your pricing. This is something that we failed to do a lot in the first years of running our business. If things feel comfortable and business is booming as it is, than why change anything right? But this is a big mistake a lot of business owners make. If you have happy, loyal clients and you're not having trouble gaining new ones, chances are that people will pay more for your services. So make it a point to do yearly evaluations of your products and services.
These are just a few things we've learned when it comes to deciding on pricing! Hope that it's helpful for you and your biz!
Cheers!