| p>Deciding what to charge for a product can be a | | | | to try your service with little risk. If they like your |
| challenge, but setting the price for a service can prove | | | | service, they'll be much more likely to buy more, |
| even more perplexing. Pricing is more art than science. | | | | perhaps at the next level. One important thing to |
| There are no hard and fast rules, other than making | | | | remember is that selling a one-time service isn't the |
| sure you cover your costs (including all overhead | | | | goal-establishing an ongoing relationship with your |
| costs) and make a profit. Many books have been | | | | customers is. |
| written and much advice given on this subject, but | | | | Package Two |
| there is no neat one-size-fits-all formula that's | | | | This is the most popular package-the one you really |
| guaranteed to work. | | | | want customers to buy. Studies show that, when |
| It's obviously important to consider competitors' prices, | | | | faced with three choices, we're most likely to choose |
| the demand for what you offer and how you want to | | | | the middle offering. Not everyone is looking for the |
| be perceived in the marketplace. What you charge, as | | | | cheapest price. Adding a higher-priced premium |
| well as the quality you provide, can dictate how | | | | package gives buyers a baseline to compare prices, |
| potential customers will view your company. You might | | | | and may make your middle package seen as more |
| choose to offer bare-bones bargains, as many new | | | | reasonably priced. |
| business owners do. Or you can decide to become | | | | Package Three |
| known as a company offering exclusive, top-quality | | | | A premium offering might be the one that takes a |
| service at premium prices. In other words, you can | | | | great deal of your time, energy and attention. Offering |
| position yourself as the Ritz Carlton or the Super 8 in | | | | a deluxe service can also discourage purchasers of |
| your field, or something in between. | | | | the mid-level package from requesting extra free |
| You can bundle items and sell more for less, announce | | | | services that are hard to refuse. |
| occasional sales and/or offer special discounts. The | | | | Several years ago, I worked with a wedding |
| possibilities are endless. | | | | photographer. She loved what she did and was good |
| Design Packages that Sell | | | | at it, but hated dealing with mothers of brides who |
| Clients want choices, but not too many of them. | | | | frequently asked her to wait around, taking far more |
| Offering too much variety complicates the buying | | | | time than originally agreed on. Her solution was to offer |
| process, forcing customers to make difficult decisions. | | | | a four-hour wedding package at her regular price and |
| Offering three packages can make buying easy for | | | | another price for the entire day. Since she didn't want |
| clients and boost your sales.People understand a | | | | to spend an entire day at one event, she set the |
| simple three-tiered approach-silver, gold and platinum | | | | "all-day price" (her premium package) at $25,000. To |
| choices. | | | | her surprise, two clients purchased the package that |
| Package One | | | | year. |
| This might be the basic no-frills service. You may not | | | | Packaging your services at three levels can make it |
| make a huge profit here, but it allows new customers | | | | easy for potential clients to buy. |