Figuring out how much to charge for your services? Start by scoping out what competitors are charging, but remember to factor in your own unique value.
So congratulations on picking a service to sell, but now I bet you have more questions like how much should I charge for it? Well, don’t worry, everyone wonders this and spends way too much time on it. So we’re going to cut that wasted time down so by the end of this article you’ll have a great idea on how much to charge.
Also a note. Most of the data and analytics I say is based off our own data from Queue. Because we have thousands of agencies from various markets, we’re able to analyze their performance and create metrics to create much better analysis of trends. So we’re not googling for information and then regurgitating it back to you.
In your agency there will be 3 types of pricing models. Subscription, one-off, and combination. We won’t talk about hourly or contract because this is about productized services, so let’s focus.
Subscriptions is simple. You charge per month, quarterly, or annually. You can get fancy and charge every 14 days or every 6 months, but unless your industry is used to this, it’s best if you stick to a traditional one; which is monthly or annually.
One-off’s are one time charges and how long it takes to deliver the work for that service is dependent on you. One-off’s aren’t that common in productized services because this is usually in contract based pricing models.
The last one is a combination of subscriptions and one-off pricing. Combining subscriptions and one-off pricing allows you to offer a baseline service with a recurring fee, while also providing additional services or add-ons for a separate one-time charge. This can be a flexible pricing model that caters to different client needs and budgets. It's important to clearly outline what is included in the base subscription and what would require an additional fee to avoid any confusion.
Looking at your competitors pricing is the first way you can figure out a base and top for your pricing. You can find your competitiors on producthunt, google, twitter, and on linkedin. Using these networks, you can look at their pricing to figure out the highs and lows. Keep in mind that you shouldn’t blindly copy the pricing you see. You should use this as a guideline to make sure you’re not pricing yourself too low.
Looking at your competitors' pricing is a good starting point, but it's also important to consider the unique value and benefits that your services offer. Take into account factors such as the quality of your services, your expertise, and any additional perks or features you provide. By differentiating yourself from the competition and clearly communicating the added value you offer, you can justify setting your prices at a level that reflects the quality and value of your productized services.
Based on our data, these are the pricing results we’ve gotten based on various markets. You’ll see industry and the pricing range for monthly subscriptions.
Web design: $1,000 - $6,000
Product design: $3,500 - $8,000
Copywriter: $500 - $2,500
Esport coach: $100 - $500
Sales coach: $2,500 - $5,000
Video editor: $2,500 - $12,000
How much you’re able to charge is also dependent on your client. If your clients are small businesses, then you will have a tougher time charging a higher price tag. For example, if your customers are making $500,000/year, it’s quite unreasonable to charge $5,000/month when it’s almost 12% of their monthly revenue. You will need to lower your prices so that it fits the market average.
Value-based pricing is a strategy that involves setting prices based on the perceived value that your services bring to clients. This approach focuses on the benefits and outcomes that clients can expect from using your services, rather than just the cost of delivering them. To determine the right price using this strategy, you need to understand the value that your services provide to clients and align your pricing accordingly. This can allow you to command higher prices if your services are seen as highly valuable and beneficial to clients.
Once you have determined your initial pricing strategy, it's important to continuously test and adjust your prices based on feedback. Monitor how clients respond to your pricing, gather feedback on perceived value, and make adjustments as needed. This iterative approach will help you find the optimal price point for your productized services over time.
Remember, pricing is not a one-time decision. It requires ongoing analysis, adaptation, and understanding of your target audience and market trends. By implementing these strategies and continuously refining your pricing approach, you can effectively value your productized services and achieve business success. Remember, you can always grandfather your clients in and increase the price over time.
There's one thing that not everyone wants to talk about when it comes to pricing. Everyone wants to optimize for getting the most money, but they fail to include that fact their talent doesn't match the price tag. If your price is high, but your quality of work is low...don't expect the client to stick around or refer you to new ones. So if you're actually talented, price higher. Because at the end of the day, this productized service subscription game is about retention.
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