 BUSINESS 4NETWORKING [Whats the right pricepoint?] |
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Posted on 04th Dec 2008 at 08:02
How do you come to charge the prices you do for sevices?
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Posted on 04th Dec 2008 at 09:17
Room Rates - No precise science. This is largely by comparison with other local hotels, current occupancy and "How much would I pay for this?". Knowing one's cost and minimum sell prices is essential.
Food - Specifically targeted margin
Drink - Targeted overall margin, but tapered for high end products.
January 4N Member Offers:
"DB&B for the price of B&B" or "Dinner for 2 with Free Wine" Click here for details
A Hotel for Business or Pleasure (but better for BOTH!)
01404 831278
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Posted on 04th Dec 2008 at 09:52
Originally, I just made it up. I decided that my graphic designer charged £45 per hour and a PR house I know charge £95 per hour. They are trained professionals, I am not. But I decided £30 per hour is fair for what I do, and cheap enough for a 'professional' to see the benefit of using me, so that they can bill more hours cos I make the non billable stuff happen.
It was only after I had launched, prices, website etc all done that I even heard of other VPAs and had a nosey at their prices. I wasn't worried about having a different price to some of them because I am comfortable with justifying why my price is what it is. In fact, so far, I haven't had to justify it.
Sarah Howells
sarah@thepassionatepa.co.uk
www.thepassionatepa.co.uk
01202 802863 / 07835 749835
The Passionate PA...making things happen. Getting your 'to-do' list done.
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Posted on 04th Dec 2008 at 09:59
It's all about VFM ... Value For Money ?
Funnily enough I'm doing a 4Sight on that tomorrow at 4Net Walsall
Some accountants (and lawyers) do extortionate, some do cheap ... we do reassuringly expensive 
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Posted on 04th Dec 2008 at 10:00
My prices are set at a rate of around 33% lower than standard 'practice accountants' - the argument being that I have lower overheads than some of those. Of course, as the business is building, and I now have to service an office etc.. then the differential may need to change in the future.
I also pay a referral fee/commission on a number of clients (and will continue to do so and would offer that as my selling through the room!). I will also offer a discount to 4Ners from my standard rates 
Whether the lower price for lower overhead is correct, I don't know - generally I believe that products should be priced at what the market will bear, rather than a markup or margin basis. Thus what I am doing goes against what I would recommend.
Graham Smith Business Services
Helping To Make Your Accounts A Useful Tool For Business Success
Bookkeeping
Management Accounts
Project Accounts
Call us: 01993 771100
Want a fully online bookkeeping system – check out our 60 day free trial
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Posted on 04th Dec 2008 at 10:41
20% 0f something is better than 90% of nothing, the market will decide if your price is fair
Chris Slay, Director | Specialist Provider of Polish Jobs | 07977 131 389 | enquiries@skillsprovision.co.uk
Skills Provision Ltd is registered under the Gangmaster Act 2004
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Posted on 04th Dec 2008 at 10:42
Quote:
Whether the lower price for lower overhead is correct, I don't know - generally I believe that products should be priced at what the market will bear, rather than a markup or margin basis. Thus what I am doing goes against what I would recommend.
For me, it has to be a mix of margin and "what the market will bear". Food & Beverage margins are governed by the high marginal costs that go into them. Below a certain margin, you just wouldn't bother being in business. Accommodation, on the other hand, is relatively modest on marginal costs and has far greater flexibility to react to market demand.
January 4N Member Offers:
"DB&B for the price of B&B" or "Dinner for 2 with Free Wine" Click here for details
A Hotel for Business or Pleasure (but better for BOTH!)
01404 831278
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Posted on 04th Dec 2008 at 11:40
I test prices all the time. New client - try a new rate. I've only had one say 'no' and his idea of a price was far too low.
Too cheap can say you are no good.
It's all about what the market will bear and your mix of offerings. I include free telephone support as if I'm in the office anyway, the actual cost to me is low and the benefit to the customer high.
I also only do full-price or free. If people want to complain then they can do that like anyone on full-price (except they are all happy!) and if it's free they should be grateful.
Flightbyte Computing
- your computer GP
01865 748197
07906 218776
www.flightbyte.co.uk
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Posted on 04th Dec 2008 at 17:18
I worked out how much I needed to earn to pay my bills,divided by an average number of jobs I would do a day and worked the price out from there. The price was well below most of my competitors but I don't believe in upping the price just because you can. If people think I am rubbish so be it, but I am very busy and more than happy with my lot MIGHTY COLIN
Professional Carpet & Upholstery Cleaning
We don't cut corners
We clean them. !!!
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Posted on 04th Dec 2008 at 21:25
A colleague in a similar field said to me, when she noted that I charged £20 per hour less than she did:
"decide what you are comfortable with charging by the hour... and then charge a little bit more".
Where appropriate, I have passed that advice on ever since...
Tamsen Garrie - View my Biscard
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Posted on 04th Dec 2008 at 21:33
I earn my income from the commission paid by lenders, insurers etc. Though if we did charge by the hour, the recommended amount is around £120 per hour.
email: charmian@poldenfs.co.uk
tel: 07899983478
Group leader of Bridgwater - the birthplace of 4Networking
Next meeting: Thursday 15th January 2009
www.4networking.biz/events/4585.htm
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Posted on 05th Dec 2008 at 13:22
I researched the market. Like Graham, because my overheads are low, I can be more reasonable than much of the competition.
It's a difficult balance, but all the while the work flows I take comfort from that!
Paul Norman 4N North Tyneside and Oxford
Gibside Associates - a different approach
www.gibside.co.uk
Training for business with, no jargon. Consultancy that makes you think. Helping you be deliberately excellent.
Check here for training courses that might just suit you!
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