Pricing a Service: Start With Cost, Capacity and Customer Value

Pricing should account for more than the hours spent doing the visible task. Include preparation, communication, revisions, payment fees, software, transport, materials, subcontractors, risk and the time required to run the business.nnNext, check capacity. A price that requires impossible volume to survive is not sustainable. Then compare the value and alternatives available to the customer. This does not mean charging any amount you like; it means understanding what problem is being solved and how buyers currently solve it.nnTest the price with real conversations and record objections. Some objections indicate the offer is unclear rather than the number itself.