Setting up pricing is one of the most difficult and critical tasks in any business, especially if it’s a service based business like consultancy. The pricing of your business are largely depending on the expertise, industry, equipment and competition.
Many people make the mistake of offering lower rates in the initial stages to lure clients or customers, however in the long run it becomes harmful as you are bound to increase rates which will not be appreciated by your existing clients.
Following three ways can surely help you in establishing pricing for your consultancy business:
– Follow Trend
You must be well acquainted about the latest prices and trends of the similar consultancy businesses. Don’t try to blindly follow them, but it will definitely give you an idea about the feasible pricing against investments made in manpower and equipment.
– Check out With Professional Services
You can also avail the option of hiring professional business mentors. There are many online and offline services that will help you to set up your pricing policy. They may cost you a little money, but they are worth the cost.
– Fixed Profit Rule
This is really an easy option. You decide the profit you need to make per assignment and go by the rule till you get a clear idea about the pricing model. Generally, the profit should be anywhere from 8% to 16%.