I am often asked how one should price a service. Many consultants tend to go for the lowest possible price they can name in order to secure the customer. At the other end of the spectrum you have the lofty upper-end service providers who wish to convey their exclusivity by charging a very high price.

Clearly a start-up consultant cannot command premium prices. What you can do is offer value. A service offering with that additional something that your client will value.

Sell your value and not your price.

Customers respond positively to value. Low prices tend to raise suspicions of the product or service being ‘cheap and dirty’. The fact of the matter is that customers are often too lazy to do their research and many latch on to the price as being indicative of value.

There are, of course, certain price sensitive markets that are heavily competitive. Of course, here you may be forced to compete on price alone. Ultimately what will decide is the market, and you may have to stop midstream, evaluate and modify your pricing to best market your services.

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