Knowing how to put a fair price on your services is a key step for you to master early in your journey towards being a successful, marketing-led business owner. You may recall that the goal of pure marketing is for you: “to satisfy customer needs profitably”. There may be a place for free options such as: quotes or discovery calls in your customer’s journey.
A fair price should be an outcome from your process of Strategic Marketing Planning.
From a true marketer’s perspective, the price of your product should not relate to your cost of production. It is more important for you to recognise what your product/service is worth in the eyes of your customer whatever target customers are prepared to pay for it.
When it comes to pricing, remember to think customer not cost. I will illustrate the process of how to put a fair price on your services with referencing the Juliet rose, pictured. This rose is the most expensive one that’s ever been developed. It sells for up to £4,000 per stem, What? £4k?
Here are my 4 key points on how to put a price on your service
inspired by the Juliet rose which was first produced by David Austin in the UK in 1989. He’d set out on his mission to develop the most beautiful rose in the 1950s. Here’s his process from which you can learn and apply to your business:
First, you should revisit your objective and competitor analysis. David set out with a clear mission” to create a rose more beautiful than any other”. At all stages, he assessed Juliet with other roses.
Second, you must be prepared to take your time. David took 15 years to develop the Juliet rose with its exceptional appearance matched by a delicate fragrance. Many of my clients can offer their service thanks to years spent gaining professional qualifications matched by years of direct experience with their clients. Your investment of time will be reflected in the price that you can command in your market.
Third is Rarity: This is a key factor when setting a price, of course, do not confuse your rarity with a niche- marketing strategy. Here’s reminder of my thoughts on the 9 things that you need to know about niche-marketing Economics teaches us that Price is a function of the demand for your product with its supply. If you are the only supplier and customers want your product/service you can rightfully command a high price provided that you deliver the value which your customers want to satisfy their needs. Juliet is a rare bloom favoured by brides for their bouquet. You can see an example bouquet
Fourth, Understand your target audience: once you have an in-depth knowledge of your target and your ideal customer’s profile you should be in a position to judge what will be a realistic price for them to pay for your service. David Austin may have had brides in mind for his rose That’s a group that is often prepared to spend more to find perfection.
Branding: your price-point should be reflected consistently throughout all your activities and communications with your customers and prospects. The romance and superiority of the Juliet rose is captured in its name.
If you follow these tips you will know how to put a price on your services to operate your business so that it will run profitably and fairly for you and your customers.
Email Lisa or fill in the form below to receive her ready-reckoner: how to check if you’ve put the right price on your service. [email protected]