Have you ever had to decide how much to charge for a service? You can estimate the number of hours it will take and the hourly rate you deserve, but it’s really hard to get it right on day 1.
Now, I know there are data driven pricing models used by large corporations, but without access to that data, small businesses usually just look at their competitors and make their best guess.
It was a constant point of discussion when we launched our business development services a few years ago. Ultimately, we picked a low monthly rate and got to work. Happy clients consistently flowed in and before too long we felt confident and increased our rates.
Then we noticed a lot more client dissatisfaction than before, which was interesting because it was the same service that previously kept every client happy. By implementing client feedback we gradually made improvements to our service, increasing the quality until it reflected the price we were charging. We didn’t realize at the time, but we were collecting data.
It may occur anecdotally at first, but it’s data collection nonetheless. Supply and demand at a micro level, it happens naturally. So just pay attention and trust that the feedback and changes will help you reach an equilibrium between price and service.
Also, increasing prices may cause momentary turbulence, but the resulting data might be what’s needed to bring services to a higher level.
Once your business notices data anecdotally, you can begin collecting it systematically. For example, for the past year we’ve regularly asked clients for a simple 1-10 rating on quality of service. If that average number dips below 8, we know we need to make a change.
On the contrary, when that service feedback is consistently 9’s and 10’s, like it has been lately, we may be underpriced.
Those were just some thoughts I wish I had when worrying about price points over the years, so hope they are of value to some of you.
The last update this week was hosting our first keynote speaker and networking event. To all readers, whether you had the chance to attend or not, please book a discovery call with This Meeting Link to see if we’re a fit to take your business to the next level.
Read more about the event below!
The Uptown team joined Dallas professionals at Westlake Brewery last Friday for our FIRST EVER live event!
A special thanks to all those who could attend, it really meant a lot to us. Stay tuned for more events across the U.S.
I know many of you are already in conversations with our team about business development services but Click Here if you haven’t yet booked a discovery call.
Our keynote speaker was Anthony Russo whose motivational work and coaching speaks on the power of failure and having a strong mindset to overcome and succeed. He has previously spoken all over the country for sports, music, and charitable events that have included 10’s of thousands of event goers.
At Friday’s event he brought an energy of positivity, humor, humility, and real talk. The the entire keynote is available on YouTube.