Captain’s log, stardate 20161214
Sent by Jonathan Stark on December 14th, 2016
Yesterday’s episode of Ditching Hourly raised some questions about how to set a good price for a new productized service.
Put simply, you should:
Set the price high enough that you at least break even, and low enough for it to be a “no-brainer” for your clients.
At the beginning, your “break-even” price (i.e., the least amount of money that you accept for delivering the service) and a “no-brainer” price for your clients will probably be pretty close. Which is to say, your profits will be at a minimum.
But don’t worry. Over time, two things will happen that will increase your profit margin:
These two factors will make your productized service more profitable the more you do it. Virtuous cycle FTW!
Have you got an idea for a productized service but don’t know how to price it? Hit reply and I’ll try to help.