This week I take a look at the interesting area of pricing your services. Everyone has an opinion on this. Read on to find out mine. There’s so much talk about pricing and new ways to do it. While it’s beholden on everyone to periodically review their charging policy, it’s very easy to find yourself going around in circles. The detail-oriented people want to measure the time every job takes and create complicated spreadsheets to accurately price every single client. I’ve been told … [Read more...] about Is Pricing Your Services Tricky, Or Just Scary?
The price is right There’s a lot of discussion around what is the ‘right’ way to charge for Financial Planning services. I get it. We’re at another inflection point in the development of our profession, and it’s right to question everything, including how your business charges. You need to be positioning your business for where things are headed in the next ten years, not where we’ve come from in the last ten. In light of that, I believe the charging conversation needs to be done in … [Read more...] about Are You Outrageously Expensive or Too Cheap?
At some point in the evolution of your business, you’ll come to the realisation that you need to increase your fees. It’s not a comfortable place to find yourself as a business owner, as often the realisation has come about because things are financially tight in some way. It could be as simple as a lack of capital for further investment in new technology or better quality staff. It could be that you're earning too little in terms of your take-home pay. It could be poor profit levels when … [Read more...] about Time To Rise: Increasing Fees For Existing Clients
Service based pricing Unlike businesses that manufacture physical products, service based businesses have no ability to build up stock, and this can have an impact on their pricing strategies. For example, a company that manufactures cups can produce them and then store them if there's not a ready market to sell them to today. They can store these cups for busier times in the year, or they can actively seek new markets to release this stored inventory. A service based business can’t do that. If … [Read more...] about Pricing Products vs Pricing Services
This week we look at two other exceptions that come up from time to time in your work; the technical advice job (which is quite common), and the success fee (which you may never come across in your entire career, but if you do at least you'll know what to do!). Technical advice jobs Another exception to your normal pricing approach is what I'll call technical advice jobs, where the client has a difficult technical issue they need resolved in order to make an important decision. Pension … [Read more...] about Pricing For Technical Jobs and Success Fees