What to Know About Pricing Your Services
Find out what to charge and how to be more strategic in this webinar from Houzz experts and pros
When it comes to setting your prices for your business, there’s a lot to consider. How do you decide what to charge? Should you be offering discounts? Should consultations be free? The Houzz Industry Marketing team drew upon its own expertise and the wisdom of pros within the Houzz community in the webinar “4 Things to Know About Pricing.” The full 17-minute webinar is available below, but here are a few key takeaways.
To Discount or Not to Discount?
Pros are somewhat split on the benefit of discounting their services. On one hand, the move might attract new clients or new business. On the other, it might undervalue the services you’re providing. In some cases, a discount may drum up buzz during slower business months, but it’s all a matter of priorities.
Pros are somewhat split on the benefit of discounting their services. On one hand, the move might attract new clients or new business. On the other, it might undervalue the services you’re providing. In some cases, a discount may drum up buzz during slower business months, but it’s all a matter of priorities.
Other Considerations
Bundling your services, teaming up with another pro or creating a tiered pricing system can help you charge more strategically. Determining whether you should charge for services such as an initial consultation is another judgment call. Ultimately, pricing decisions depend on what makes sense for you and your business.
Bundling your services, teaming up with another pro or creating a tiered pricing system can help you charge more strategically. Determining whether you should charge for services such as an initial consultation is another judgment call. Ultimately, pricing decisions depend on what makes sense for you and your business.
Calculating your hourly billable rate isn’t an exact science, but generally it’s a matter of figuring out total costs such as owner salary, overhead and profit and dividing that number by the number of hours or projects you anticipate your team will work. Researching comparable companies in your area, if possible, can also help.
“See what other contractors of your quality, experience and business size are charging. Ask members of any trade organizations you’re in or find some peers that you trust and see if they’re willing to share their numbers,” general contractor Steve Greenberg of Steveworks in Massachusetts says.
Learn more about the Houzz Trade Program