Tips of What to Charge for Services
If you are in a business that charges for services, such as a handyman, advisor or accountant, you will need to think about what to charge your clients. You services are important to the success of your business. You don’t want to charge too much because you may lose business. The bottom line is to find the medium price that allows you to be competitive and still make a profit.
- Contact other similar services and find out what they charge. You will want to be competitive, so charge a little less or a little more, depending on what you have to offer.
- Consider how much experience and/or education you have to complete your services. If you have more than the average, you can charge more. If you are just beginning your business, you may charge a slightly less in order to build clientele.
- Add your expenses for supplies and charge the customer at least 25 percent more than what you paid. This will cover expenses for your time, materials and gas.
- Calculate how much time you spend on your service for the client. Charge no less than minimum wage per hour and no more than the most expensive service in your area.
- Decide whether your services should be a flat rate or per-hour rate. If you choose a flat rate, create a list of services you offer, then assign a rate to each service.
- Compare your costs with other businesses that offer similar services. If your services are more extensive, then you can charge more for your services. If your services are less, consider increasing your services to be more competitive so you can charge a similar price.
- Offer incentives to your clients. This will allow you to charge more per job or per hour, while leaving the customer feeling satisfied when they use a coupon or cash in an incentive.