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Pricing Strategy for Service Businesses

About this episode: 

Set your price too high, and you will price yourself out of the market, and out of business. Set your price too low, and your margins will suffer, and so will your business. So getting it right is critical. 

Setting your fees is supposedly more art than science - but it need not be. In today’s session, we’re going to explore how to getting it right: the strategies, and the tactical parameters.

Part 1

Part 2

Topics Discussed

•  What factors do leaders need to consider in their calculations? (1:10)

•  How do we want our client to react with our rates? (2:38)

•  How to quantify the value we offer? (6:10)

•  How to handle client's pushback for your rates when they find out that you offered a different price for another organization? (11:49)

•  How should projective costs influence current pricing? (15:14)

•  What percentage should clients pay upfront versus after delivery? (16:54)

•  How do transparency and credibility play a role in your pricing strategy? (19:05)

•  What language helps discuss rates with clients? (25:27)

•  A-B Testing on pricing (30:43)

•  How does the increase in people relate to your pricing? (32:28)


•  What's the advantage of having a fixed cost vs per participant cost? (0:32)

•  Subcontracting Pricing (2:52)

•  What's the connection between pricing strategy and marketing strategy? (5:32)

•  How can we more effectively communicate the high-end appeal of our own professional services? (10:34)

•  Goldilocks Syndrome to Pricing (15:47)

•  How would you tease that out of a longer buying cycle, whether your rates are too high or too low? (21:08)

•  Does working with a pricing strategy consultant really help you? (23:55)

•  Cost of living considerations to your pricing strategy (26:12)

•  Do service professionals really get what their hourly rate actually is? (31:12)

•  Where should we focus when it comes to pricing strategy? (33:54)

Curious? Questions? Interested in exploring the possibilities?