Key factors to consider when pricing your products and services

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ssess your lifestyle. To know what your main expense is (your salary), you need to calculate what you need monthly to maintain the lifestyle you want.

As a self-employed worker, we often charge “what is left over” from what clients pay us, but this is not the correct way to do it.

You need to have a fixed salary that matches your lifestyle.

Costs per activity: these are the expenses that you must cover.
Variable costs: the more sales you have, the more costs you will have (collaborators, Ads)
Fixed costs: these are the costs you will always have to pay regardless of whether you sell more or less. (Self-employed fee, salary, rent, internet, hosting, manager…).
Competition: It is important to know how much your competition charges in order to understand the market you are working in. Analyzing your competition can help you as a reference to know if you are cheap or expensive. If you are expensive, you just have to make sure you are offering a lot of value. And if you are cheap, you can think about raising prices or turning it into a strength for your growth.
Customer-perceived value: What makes you more expensive than your competition is your value proposition, your authority, your testimonials, your guarantee, offering results, being always available or making the client wait to work with you. In short, your brand and what you build around it as you gain experience.
Your purpose or why: that it is bigger than just making money. Contribute to society, improve the world.
Product or service life cycle: beta product, mature product....
Brand positioning: Your price will be directly related to your brand positioning.
As we say in our agency, the only thing that differentiates a cheap price from an expensive price is that the expensive price will require a more elaborate sales formula.

You're going to have to justify that price very well with your unique value proposition .

If you decide to go for a cheap pricing strategy, keep in mind that there will always be someone cheaper than you and you will be constantly modifying your prices.

At this point, do you still think that pricing strategy is just a matter of valuing the price of your hour and that's it? Leave me your opinion in the comments, I'd love to read and answer you.

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Miriam Andres
I am an elephant tamer, but I love ants. I like to combine my knowledge of jo dubai whatsapp number urnalism, communication and marketing to grow the network. I am passionate about communication: social networks, digital content and copywriting.