How To Price Your Services To Maximize Profitability

By Sam Demulling, ConnectWise

Pricing is everything to your business. But figuring out what to charge for your services can be tricky. Charge too much and businesses won’t want to work with you. Charge too little, and you won’t be able to cover your costs. Finding that right price will help you sell your services better, bring in more profit, and give your customers the value they expect.

So, what do you need to know to ensure your price is right?

Why Pricing Strategies Are Crucial

Figuring out a pricing strategy is the most important, and easily forgotten, part of running a business. You can provide the best experience and value to your customers, but if you’re not pricing your services right, you could be leaving a lot of money on the table. The more you focus on services, the further pricing falls on your priorities.

Knowing how even a small change can make a big impact on your profitability is the first step in working on your pricing strategy. And as you begin putting more focus on your pricing strategy, you’ll notice different stakeholders and departments have opinions on the matter too—and they aren’t afraid to let you know them. Pricing isn’t easy, and it will take work to get everyone on board with changes.