“Oh, here we go again…a recruiter bleating on about pricing!”…actually forget my profession for a moment and let me know what you think.
Having always worked in service led organisations pricing has always been close to my heart…because if it wasn’t you probably wouldn’t be delivering that service for long!
Whether the service provider is a sole trader, an SME or a plc, perception of value to your clients is critical…and when I say “value” I certainly don’t mean always being the cheapest.
From service led businesses to professional practices there is always a consideration to Competitive Pricing; this is setting the price of a product or service based on what the competition is charging. This pricing method is used more often by businesses selling similar products, since services can vary from business to business, while the attributes of a product remain similar.
One thing I have always been taught is to match your pricing strategy to your value proposition. Your price sends a strong message to your market – it needs to be consistent with the value you’re delivering…back to my industry for a second; this really makes me question whether even seasoned professionals in my sector really think about this, short term wins or long term goals?!
Now I don’t underestimate this, there are several contributory factors which we all must balance; does our pricing;
- Reflect the value you provide versus your competitors
- Match what the market will truly pay for your offering
- Support your brand
- Enable you to reach your revenue and market share goals
- Maximise your profits
Are these factors that we all take in consideration when pricing for work in whatever sector or market we operate in…what priority should they take?