Services based businesses are one of the best options for home based businesses because of its flexibility and low investment costs. However, in order to make any business a success, it is important that you price it well.
Would you go to a parlor when you think it is charging too high? Or if it is charging very low wouldn’t you question its hygiene?
Thus, in order to grow and sustain, it is necessary that you are aware about pricing services. Here is a guide for you that will help you ascertain the perfect pricing strategy for you services business.
Services like salon and beauty spa, event management, photography, coding, rangoli and mehendi artist are lately in high demand and also very well paying because of the skills needed!
While pricing your services, remember, Your Price Needs To Cover Your Costs! You can read about the technical details of various kinds of costs here.
Services are based on the skills you deliver and thus, your price will directly relate to the quality of skills that you are offering. Thus the cost of raw materials or materials that you may incur is low. Material costs that you may incur are limited such as cost of cosmetics if you run a beauty parlor or mehndi powder/cone if you choose to be a mehndi artist. If you end up becoming a coder, photographer or a content writer all you would need is a computer or a camera and the WiFi connection that you might anyway pay for! You might incur an occasional rental or advertising fee if you choose to participate in an exhibition or advertise.
So your basic costs are super low! (All the more reason to start a services business. Yayyyy!)
Services are usually charged on per project basis, such as size of the rangoli or type of the event. In rare cases, it is also charged on an hourly basis such as massages and spas. It all depends on which industry you are in.
The major determinants of your price would be:
1. Standard Prices
2. Added incentive for your experience or special skills
3. A little incentive for your USP (Unique Selling Proposition) which could be anything from better hygiene or customization.
If you are looking for more tips and tricks to start and establish your services business, you are at the right place! Call and connect with Skill2gether.in on 7722015566 or email email@example.com and get free counseling for any business related queries that you may have. We also provide you with a platform to list your products, services and training and connect to more similar skilled people and build a community of your own!