Problem pricing my services, need some advice!

Discussion in 'Growing and Managing a Business' started by fstep, Dec 18, 2013.

  1. fstep

    fstep
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    So long story short I ran a small marketing business for nearly a decade. During this time I relied a lot on startups, freelancer sites, etc for business. A few years my business started really growing and getting large companies and taking business away from some big brand name marketing agencies. The issue i'm finding now is that the big companies I work with are saving way too much with me. A client I got yesterday I just found out was previously paying 200%+ more for the same service i'm doing. At the same time the small clients, which are still responsible for close to 2/3 of my profit are screaming bloody murder because I went up from like 35/hour to 45/hour (i'm in NYC so that's still very low, but many of them are in smaller locations or our of country)...
    I could charge based on client's budget, but i'm worried that as I keep growing that can get me in trouble with my bigger clients if they find out. How do I go about setting proper rates for my service?
     
  2. Sean_DeSilva

    Sean_DeSilva
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    Use a more flexible pricing model: performance/value based, fixed project fee, or retainer + hourly. One or a combination of these will help you control prices better based on the client's size and needs.
     
  3. fstep

    fstep
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    Fixed project fee does not work. For example if client A with a huge budget asks me to manage their social media for 2 hours a day and client B with a small budget (which i still need) asks me to do the same, I can't charge them the same or I lose money and I can't have a huge gap in pricing or client A will get upset if he finds out.

    I don't want to do performance based, it's too hard to track results from everyone.

    I already do retainer + hourly but run into the same issue as I mentioned with the fixed price model.
     
  4. RoseAb

    RoseAb
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    This is an interesting question. The best I can think of is to offer people "scholarship" or other discount, for new businesses, nonprofits, tiny companies, etc.
     

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