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Finance | Pricing strategy
As a small business owner, deciding how much to charge for your products or services can be a very difficult process.
This section covers many of the issues involved in price setting including how to work out your hourly rate,
how to calculate
a mark up and how to deal with project scope creep. If your
small business provides a service and hourly rates aren’t for you, we also look at alternative pricing
strategies.
Need help calculating your hourly rate? Try this hourly rate calculator.
Pricing for wimps: your minimum hourly rate
04 May 12Julia BickerstaffAs a soloist, how do you determine what your hourly rate should be? Use this simple three-step formula to help you work out the minimum you should be charging. Read more
Comments: 6Are you undervaluing what you offer?
28 Apr 12Deborah JacksonUndervaluing what you offer could be costing you both clients and money. Here’s how to spot the tell-tale signs and start turning things around. Read more
Comments: 3Pricing strategies: Value-based fees
19 Apr 12Michael NeaylonI’d heard the term ‘value-based pricing’ a few times, but the penny only truly dropped when I read ‘The Consulting Bible,’ by Alan Weiss. Read more
Comments: 8Pricing for wimps: getting started
28 Mar 12Julia BickerstaffPricing is a source of great anguish. And as with many things that cause us anxiety, many soloists choose to deal with the issue by ignoring it. Read more
Comments: 18Try Flying Solo's hourly rate calculator
05 Mar 12Whether you quote by the hour, or charge a fixed fee for a specific project, this hourly rate calculator will help ensure you stay in the black. Happy billing! Try it now. Read more
Buyer beware: underhand pricing strategies
08 Feb 12Heather SmithAfter I recovered from the shock of the quote for some minor orthodontic work, I realised my orthodontist had used some very savvy pricing strategies on me, some of them not very ethical. Read more
Comments: 11Pricing strategy: Setting your price
02 Dec 11Monique BockDetermining your pricing strategy is a critically important issue for a business owner. Here are some of the factors that you should consider when determining how much to charge. Read more
Comments: 0Pricing pressure: How to get out of the ‘rate-race’
22 Oct 11Robert MoormanIt strikes me there is a race to the bottom when it comes to pricing lately. Here’s what not to do when you feel you are under pricing pressure. Read more
Comments: 2Consumer protection law: an introduction
09 Sep 11Russell DymondAs a business owner, it's incredibly important that you understand the legal rights of your customers, and your obligations to them. Here is a helpful introduction to consumer protection law. Read more
Comments: 1Pricing services: Stuck in a timeflow trap?
17 Aug 11Sara HowardFrom a cashflow point of view, I find running a service-based business a doddle. I can pay myself a regular salary, and my biggest overhead is my MacBook. But the challenge is working out a strategy for pricing services. Read more
Comments: 7Pricing strategies: How to price your services
28 Jul 11Michael NeaylonI’ve made plenty of mistakes when it comes to my pricing strategies for my services, and my clients report the same challenges. It’s one of the biggest issues faced by soloist service providers. Read more
Comments: 13Small business valuations: What is the value of your business?
15 Jun 11Alan HargreavesPeople tend to focus on valuations only when they are ready to exit their business. But what if you put it front and centre when you come in the door? Read more
Comments: 0Contra deals: Business deals without money
18 Aug 09Heather SmithSometimes in business you help people out for free. Your five minutes may save them hours of grunt work. There’s no point raising an invoice, but can you be rewarded for contra deals in other ways? Read more
Comments: 12Understanding resale price maintenance (RPM)
05 Feb 09Michael TerceiroIf you’re involved in the wholesaling of goods to retail outlets, you need to know about resale price maintenance. Here’s how to ensure you don’t fall foul of the RPM prohibition. Read more
Comments: 4False economy: Beware the lure of the quickie
06 Oct 08Peter CrockerSo your customer rings and says, “I need something fast, cheap and cheerful, nothing fancy. Could you have a quick look?” Don’t believe it. This is false economy and the result can be less than satisfying for all involved. Read more
Comments: 36Business quoting: 10 secret line items revealed
15 Sep 08Peter CrockerThe world of big business is renowned for mysterious fees and charges. But here amongst small business, the use of hidden line items is running rampant! Here's an exposé of the black art of business quoting. Read more
Comments: 26How to price right for maximum profit
09 Jul 08Sue HirstThere are a variety of methods for determining the price of your goods and services. To ensure you price right for maximum profit, let’s look at some of the merits and pifalls of different pricing strategies. Read more
Comments: 6Is a ballpark too much to ask?
12 Jun 08Noel RangerWhilst in the market for a new Thingy, I struggled to get a straight answer about cost. I mean, how hard can it be to make a rough guess? Very, it turns out. Read more
Comments: 13Pricing strategies: Deciding on price setting
09 Oct 07Robyn HaydonPrice setting is tricky for new soloists to master. Do you charge on a project, daily or hourly basis? Do you base your pricing startegies on what others charge, what you’d like to earn or what you think the market and/or prospect will bear? Read more
Comments: 16Billing clients in six minute increments
16 Jul 07Peter CrockerBeing a soloist, there are many factors to consider when billing clients. How do you work out how much to charge your clients? Read more
Comments: 45How to work out your hourly rate
19 Dec 06Megan HillsIf you intend to charge using an hourly rate, it helps to know how much you are worth. Only then can you quote accurately and build a successful business that you can enjoy. Read more
Comments: 2A pricing strategy solution for small business owners
05 Feb 06Jess TylerOpen-ended service contracts can leave clients feeling somewhat uneasy. How can they judge if they are getting value for money or that the price is reasonable? So it's essential for small business owners to have an effective pricing strategy. Read more
Comments: 1How to deal with project scope creep
11 Oct 05Megan ToughThose of us trying to move away from charging an hourly rate can suffer when clients expect more than initially agreed. So how can you avoid project scope creep? Read more
Comments: 11Pricing strategies: How to calculate a mark up
23 Aug 05Kathryn WilliamsOur earlier article gave an overview of the mark up principle. Now let's take a look at mark ups in action and how to calculate a mark up. Read more
Comments: 2Pricing strategies: The lowdown on mark ups
17 Aug 05Kathryn WilliamsUnderstanding mark ups is one of the pricing strategies you will need to understand as a soloist. The points below may provide a useful checklist. Read more
Comments: 5Pricing strategies: Hourly rates? No thanks!
07 Jul 05Megan ToughMost independent professionals use hourly rates as a pricing strategy. Yet charging for your services this way can lead to mediocre business success. Read more
Comments: 21
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Small Business is Australia's fastest growing sector – this business community site was created for those running a small business of one to five people. Here the solo and micro business owner will find small business forums, a small business directory, free resources, help, tips and advice on: starting a small business; working smarter when working from home; effective small business marketing; small business networking; the solo psyche; staying balanced as a small business owner; small business technology advice and small business finance tips.
