Just Jimi

Learning how to price your services

Things to consider

Learning how to price your services is never straightforward, especially for someone turning their hobby into a business.

I like to say money was never the reason I started my fun casino business; the motivating factor was seeing people having fun without losing money. The money issue is partially factual as the darker side of casinos is haunting. However, we could have joined the red cross or something as volunteers.

Most business owners start a business to fulfil their dreams and meet their desired lifestyle. However, overhead fees, taxes, fixed costs and other things come with the territory.

To meet this need, these are two factors I consider. Firstly, you have to find clients willing to pay what you believe your services are worth. Secondly, clients need to trust the service provider to deliver. Trust comes from being tried and tested, and it takes time to win trust.

Learn to price your services

An early lesson

I’ll share an early Nomadic Fun Casino Hire story with you. We were trying to win clients, and my pricing strategy was to find out how much the competition was charging and charge a little less.

A client called to hire our services; we gave her a quote, and she said her former fun casino hire providers did it for less the previous year. We happily matched her price. After setting up at the venue, she walked in and announced that this was much better than she had anticipated. Her previous fun casino hire showed up with table cloths and laid them out on her tables. It became apparent how they were able to charge so little. My overhead costs were much more than she paid for the event.

Write everything down

My business coach taught me what I believe is the best way to price our services at the Nomadic Fun Casino Hire.

To accurately learn how to price your services, write everything you do. Then, take yourself out of the equation and write everything down, like paying for every service and item. Next, include your fixed costs such as van hire, storage, equipment and labour costs. After doing, this, think of ways to reduce your costs.

Write down exactly what these things will cost you to hire. For example, if you’re working from your bedroom, write down what it will cost you to hire the space that will enable you to provide your service. Adding this is that you need to allow your business to grow. You don’t want to be running your business from your bedroom in years to come or borrowing your dad’s van; you have to factor in the prices.

Write everything down, including your mark up; the mark-up percentage is the profit margin that makes you happy to provide your service.

It’s also essential to be clear on how many services you need to provide over a certain period to meet your costs and how many to meet your desired target.

Compare prices

The next stage is to look at the prices your competitors are charging for similar services. Again, you don’t have to stay within their price ranges, but you have to show why you are different. Clients are looking for other things, and you have to offer the value of your service. Finally, you have to find your place in the market.

Conclusion

Thank you for joining us on our four-week journey about turning your hobby into a profitable business. We hope this blog has helped you learn how to price your services. It has been a pleasure putting my thoughts into this. I am still learning every day, and I would love to read your comments. 

 

 



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