While young, I used to watch the popular show 'Kaun Banega Crorepati' (KBC). While seeing it, I used to wonder - are those questions really worth the price tag??
Most of the initial questions were so easy. They made me feel that winning the game was a child's play. Also, I remember feeling SO frustrated when those sitting on the HOT seat gave stupid answers to silly questions. I so wanted to tell them (as if they could hear me) that they were completely off beat!
Keeping the frustration aside, let us talk about the pricing bit. How did the KBC team decide the price value for every correctly answered question? Was it logical? Was the price tag backed by some smart algorithm? Or was it just random.
As I grew up, I started to relate the pricing of KBC questions to real life scenarios. What occurred to me was that, unlike KBC, setting 'THE PERFECT PRICE' for your services can often be confusing (especially if you sell services, not products)
Well there is nothing called perfect in life. Essentially a 'perfect price' is a price that you feel is a genuine reward against your services and one that your client feels comfortable paying off from his pocket... Sounds reasonable right?
- There is nothing called 'right' or 'wrong' pricing. You just need to have a fair idea about what your competitors are charging and start charging somewhere around that figure. However, the price that you wish to quote is always up to you and can vary largely from standard benchmarks.
- Depending upon the stage of business or brand building you are at, you can decide the pricing strategy. If you are still in the initial 3-4 years of business, lower prices will help you get priceless returns such as: experience, expertise & database. These will ultimately enhance your credibility and prepare you to pep up your prices down the line.
- Slowly and steadily, try to avoid working on hourly rates. Try to propose comprehensive pricing packages. These bring you business security and more gains.
- Calculate your expenses & target revenue goals. This will help you to decide your pricing strategy.
Most importantly, remember you are not in a company selling products and/or processes. You are selling business transformation services. You will be chosen for the results that you get for your clients. Your business is purely result oriented. Better results can help you fetch better prices and vice-versa.
Happy pricing ! ;)