Pricing products or services with the right standards is a tough job for many businesses. That’s why we notice that business negotiations take too much time before reaching the deal. So how to price your work smartly?
The pricing process
Consider the duration and fix price table for it:
- Less than 2 months =….. $
- 2-3 months execution= …$
- 4 months and above=….. $
Put pricing landmark
From $ to $ or Min-Max in order to guarantee the profit edge in all cases and determine your pricing layout.
How many persons will work on that project
- 1 engineer + 1 designer =…$
- 2 developers + 1 designers= …$
- 2 developers + 2 designers + Content producer=….$
- 2 articles per day =….$
What are your raw materials
Including the software subscription, camera, the workers’ salaries, movement spendings ( if the project needs particular movement to particular places), the used platforms, and frameworks. for instance, the hybrid app would be cheaper than the Native one.
Set project category pricing
- Website = …$,
- Website + Mobile app =….$,
- Software= …$
Consider the project option and functions
- Real-time data treatment
- Assistance duration ( less than 3 months=..$ , More than 3 months = ….$
When it comes to the customer direct negotiation, you need to be aware of his pain points and strong ones. So you will conduct a kind of market research on his profile as you did for his project before.
Hence, you will have a close understanding and manipulation to his personality, and then you can start 😉
Determine the competitors’ pricing methodology
You need to do that for not being out of the cast. Also never let the customer compare your business with competitors.
But if so ( and this is frequently happening) be ready and try to put the spot smartly on your work advantages among the other businesses. But of course, you will not humiliate or under esteem others’ business, that is about ethics
No end price declaration
Never put an end price for the project value, instead, keep the negotiation line very open and flexible.
Clarity is essential
Try to be detailed in terms of task pricing inside the quotation. i.e tell him the price of each stuff and under which criteria you put, being clear and reasonable would highlight your professional sight.
Long term business relationship is your main goal
Put the accent on the networking and long term relationships rather than being a lucrative person interested only in project fulfillment.
Trust is everything
Be a source of trust and give him technical and marketing advice for long term product performance, and recommend him what fits him and avoid what’s not.
Understand your partner
Try to understand his mentality and attitudes, if he is flexible or stubborn, he accepts the joke or very serious person, mean or generous… and try to refine your speech upon that.
Further pricing metrics
This Acronym stands for Buy One Get One or what we call the Power of Free. Generally, companies use this process when they have overstock and they want to get rid of it.
Here, the customers will purchase these products considering that as an irresistible deal and they will hurry to buy.
However, nobody thinks about these questions ‘’Do I really need to buy 2 bottles of the same product? Does it really discount pricing? This what we mean by the power of Free.
This is very frequent behavior especially in the supermarkets where they put this number 19,999 instead of 20,000. At first, you would be taken by the deal, but if you focus a bit on the lower case number,’’999’’ you will find that no deal behind that.
At this level, the self-estimation and social status would master the game. Because many people think that when they buy an expensive item they would be categorized in particular social strata.
For example, take Lacoste T-shirt, we put 2 T-shirts with the same fabric, design, and color but only one of them includes the Lacoste sign, you will notice that prestigious people will go for the labeled one and forget about the generic. this is the power of a brand name.
Apply that with your product plus an intensive marketing campaign you will definitely increase your sales in a month but make sure to do that with the right target.
For instance, you will not address people whose income 1000$ to buy Swatch of 10,000 $, this would be irrational. This what do we mean by the right target.
We all know the Mercedes cars, this huge Car brand, who could buy it, and under which conditions in terms of personal features? Have you ever asked about that, here is the answer?
Mercedes is usually associated with people who have realized success and profession from 50 years and above.
These people enjoy business flourish and that car reflects their social position and lifestyle.
However, when we think about Lamborghini or Porsche cars, they are usually associated with excitement, youth, and energy. Therefore, we find that the major owners of this category are young people.
We wish you a very profitable business to buy a Lamborghini Car and Mercedes one later. But usually, consider the persuasion techniques that would make you the master of your business deal. See you guys 😉