PRICING OF SERVICES

Made By : Yash Singh Lingwal

BBA V M2
 Table of Content
• What is pricing
• Why is pricing services so hard?
• How to price services
 What is pricing
Pricing is equivalent to the total service offering. Pricing includes
the brand name, delivery and other benefits. Pricing translates the
qualitative offering into quantitative terms.
 Why is pricing services so hard?
• Many service-based businesses struggle to come up with a fair and
profitable pricing strategy. Unlike product pricing, you can’t exactly
quantify all the costs that go into providing a service.
• The expenses that go into providing a service are more subjective than the
expenses that go into making a product. How much you charge customers
doesn’t always directly correlate with the amount you pay to perform
services.
 How to price services: Your 6-step guide
1. Calculate your costs
2. Look at the market
3. Know your customers
4. Consider time invested
5. Come up with a fair profit margin
6. Charge an hourly or per-project rate
Calculate your costs
Look at the market
Know your customers
Consider time invested
Come up with a fair profit margin
Charge an hourly or per-project rate