Pricing For Your Business
Pricing services can be a challenge. In the blog last week I talked about tracking time and understanding what is involved in your projects. What exactly does that mean? Understanding what is involved in your services is important to serving clients as well as pricing and managing cost. Over the next couple of weeks, let's take a brief look at cost and consider an hourly rate per service.
How much does it cost to provide a service? Here’s where your Cost of Services Sold (coss) comes into play.
- What do you need to provide to the client or what tool or supply do you need to complete the job? (you will maintain ownership of this tool.)
- Sometimes we don’t have an expense on this end. Sometimes we are managing a tool the client has purchased. If the client purchased the tool, we do not count that into our cost.
- If we purchase a tool for a client, the tool belongs to the client, but we factor this into our cost. (the client owns the tool)
Price the service. What is the standard rate for the service? I don’t necessarily stick with the market rate because often prices are overinflated. I offer data entry services. Virtual assistants normally charge $35 per hour for their services regardless of the service. As an accountant, I must provide data entry if the client must have manual entry.
Because a specific task or project requires data entry, I would charge a lower rate for the data entry as opposed to accounting and tax services. I would offer the service plus cost. The cost would go into the overall fee. The hourly rate is to provide the service.
If your client is not on a monthly package and this is a one time project you would charge a one time fee for the tool plus the hourly rate for services. However, if it is a reoccurring cost we need to add that to the monthly package cost.
Next week I will go into how I break out data entry prices as part of the packages.
-Y. Michelle Coard, Accountant & Profit Strategist
Small Virtual Accounting Firm in Fuquay-Varina, NC
Listen or Watch the Podcast: Pricing for Your Business. This episode is a trimmed version example of a webinar example that I offer in the monthly Ask The Accounting Webinars. Hop over to the Ask The Accountant Memberships for more information. Episode 5122019