Home – New Forums Starting your journey How much to charge?

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  • #982619
    SocialNikki
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    • Total posts: 9
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    HI Guys
    I am a newbie on this site and am loving it so far. Figured i would jump in with the big questions first.
    I have started a social media consultancy business. We create social media profiles and well as strategic marketing and customer engagement plans for social media.
    The problem and its a fairly big one is figuring out how much to charge. I am working off and quoting a hourly rate. But not sure what the market is charging for these services.
    Anyone had a social media profile created for them and how much did it cost you?
    Am interested in what the market is doing
    Thanks
    Nikki

    #1137801
    Divert To Mobile
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    Hi Nikki,

    You can kill a few birds here, do some google searches to see who your competitors are, then contact them and get pricing.

    There is also an hourly rate calculator buried somewhere within the site, you could use that as a guide too.

    Steve

    #1137802
    Anonymous
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    Hi Nikki,

    Here’s the pricing calculator.

    It lives in the Finance section of the site, where you’ll also find a whole swag of articles on pricing strategy.

    Hope that helps,
    Jayne

    #1137803
    WhatsThePlanDan
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    Ahhhh…. the age old question – How much do I charge?

    Good luck with it – I’ve just been through it. I went through about 6 different re-workings with different methods (competitor analysis, cost-based, value-based, random number generator ;), etc) before I settled on mine. What I have decided is that your rate/charge should:

    1. Communicate the value of what you are providing
    2. Cover your costs (including your desired profit level)
    3. Be acceptable to your target market

    I decided to focus mainly on 1 and ignore (to some extent) what my competitors are doing (other than to make sure I’m not pricing myself way too low – which I have a tendency to do :o). What I found most difficult was apportioning my fixed costs out as I had to decide how many sales were realistic for break-even – at least with an hourly rate you will have a fixed number of hours you can offer.

    I realise now I’m just rambling on… sorry!

    Cheers
    Daniel

    #1137804
    TheGoldenGoose
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    I am a huge fan of pricing based on value, rather than pricing based on competition. What kind of value are you offering your clients?
    What are they willing to pay?
    What are your points of difference vs your competition?

    #1137805
    alliedib
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    If you are in a cut-throat industry, it is always hard to price on value – you generally get a lot of ‘but I can get this from X for less than you are offering’.

    In my profession, I usually receive commission for placing policies. I still, however, work out how many hours I expect it will take to service the client and ensure my remuneration (commission plus broker fee) is enough to cover this (plus a margin for profit – that is, after all, why I am in business). Sometimes you get it right, sometimes wrong – the secret is to getting it right more often than not. Good businesspeople understand my fee schedule and are happy to pay for the service and advice they receive. If someone is purely price based, they are usually not suited for my services.

    You need to ensure that you offer the intangibles – in my case it is personalised claims service, quick returns of calls, being their advocate and crusader towards the insurer. People value this and it is what gets me the bulk of my referrals – I am definitely not the cheapest in my geographical area but that suits me perfectly.

    I was taught when I started that ‘people will forget exactly how much they paid 12 months ago, but they will remember if they had a bad experience (service / claims etc)’ – if you work on this ethos then you will be in business for a long time…

    #1137806
    TheGoldenGoose
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    alliedib, post: 157233 wrote:
    If you are in a cut-throat industry, it is always hard to price on value – you generally get a lot of ‘but I can get this from X for less than you are offering’.

    I work in an industry where $49 logos are made. Mine are $1,599. You could say that’s cut throat..

    It’s all about the value you provide. I will happily pay more on my policies to my insurance broker knowing he looks after me..

    #1137807
    Shaukat Adam Khalid
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    It really depends on how well your message matches your market. The tighter the message, the higher the fee.

    Your prospect needs to feel “This is for me! No one understands me better than Nikki. The price is high but she’s worth it”.

    Can you see how pricing is more about how your customers feel about you because what you do to make them feel special – really special?

    #1137808
    spinninghill
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    This was my simple formula.

    How much do you think people are happy to pay – IE, what is the value? (as others have said)

    What profit are you happy with? What income are you happy with?

    Of course, you have say to yourself, how many items do I think I will sell per day, or per week, or per year. My suggestion, pick what you think is a mid case and times it by 2 and divide it by 3.

    #1137809
    SocialNikki
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    • Total posts: 9
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    Thanks everyone for your feedback. It has confirmed somethings i already knew and given me things to work on with my offer.
    I am going to stick with my original pricing which i think is fair to pay and fair to charge, but also firm up what i offer to back up the charge.
    This site is great , I’m only a few days in and already reaping the benifits :)
    Thanks guys and have a great day

    #1137810
    LucasArthur
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    I know this is a little left field and is from a consumer/sme perspective, although i must say i am generally happy to pay more.. especially if the person i am trying to contact actually returns calls, makes call and follows through on initial commitments :)

    Cheers
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
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