Important Information About Pricing
Welcome to Part 09 of Home Business eCourse.Cash in on the high demand for secretarial services. The Secretarial Business-in-a-Box provides everything you need to start and run a successful home-based Secretarial Service
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A good formula for working out prices is to beginning workout your costs. First you need to figure out what the cost of materials are that you use for your product. You will also want to include the cost of promoting, utlities, legal fees etc.. By including all of the things you can figure out how much each product you offer cost you. It is better to overestimate this amount a little but not too much.Next you need to figure out what your time is worth. You will need to figure out how many hours you have involved in each product and then figure out a acceptable hourly rate for your services. Remember, that at first you will not want to overdo it on your hourly wage. This is something that can be worked out later to reflect more per hour for you.
Once you have added the costs of materials and your time then you should add around 30-50% on to the total cost to give you a margin of profit. So if a product you were making were to cost you $50 in time and materials you would add an extra $25 for a profit margin. This profit will help cover expenses for expanding your business, paying your taxes, or help cover any expenses that come up unexpectedly.
When figuring out your prices, you will also want to be adaptable with your customers if they would like to negotiate for lower price. Just make sure you do not let them talk you into going to lower the price so that it costing you money.
Another good way to work out pricing is to check with some of your competitors. Look around and find out what they are charging for the same services that you offer or a similar service. If it is possible to make your prices lower than everyone else's can make this a big deal when promoting your business.
Be very careful when doing this though because you do not want to always be the cheapest one out there. This will work to get your business started but once you get rolling, you do not want other people to think that your service is not as good because it's so much lower-priced than others.
Next time we will discuss mistakes you do not want to make in the first year. See you then.
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The absolute fundamental aim is to make money out of satisfying customers. - John Egan~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
