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Tag: service pricing

Business Service

Hourly vs. Value-Based Pricing Which is Right?

Hourly Pricing: The Traditional Approach

Hourly pricing is the most common pricing model for freelancers and small businesses. It’s straightforward: you charge a set amount per hour of work. This simplicity is appealing, offering clients transparency and a predictable cost structure. They know exactly how much they’ll pay for a specific number of hours. For service providers, hourly rates offer a clear measure of their productivity and earning potential. However, the simplicity can mask some potential drawbacks, as we’ll explore later.

Value-Based Pricing: Focusing on Outcomes

Value-based pricing flips the script. Instead of focusing on the time spent, it centers

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Business Service

Price Your Services Like a Pro A Simple Guide

Understanding Your Costs: The Foundation of Pricing

Before you even think about what you’ll charge clients, you need a crystal-clear picture of your expenses. This isn’t just about the obvious things like materials or software subscriptions. Think about everything involved: rent or office space costs (even if you work from home, factor in a portion of your utilities and internet), your time (including administrative tasks), marketing expenses, professional development, and even software licenses. Create a detailed spreadsheet breaking down all your costs, both fixed (rent, subscriptions) and variable (materials, travel). Knowing your exact costs is the cornerstone of profitable pricing.

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