- What’s the best way to price up custom packages?
- Reply To: What’s the best way to price up custom packages?
Reply submitted 09/09/21 @ 05:44pm::
Let me take a counter – you can price up your direct costs and make some assumptions around indirect costs, and then add a mark-up or margin to get to a final price that you add GST to for the client’s package. What is reasonable for margin/markup can depend on the industry. Ranges can be low 10% to high over 100%.
Another way to price is to focus on your customer and your market, what value do they get, what experience is it ie is it functional e.g. cleaning or is it highly differentiated and of high satisfaction to the point that you want to work out ‘what is this experience worth’ to your target customer – if you can work this out or a range, then you can compare that to your direct and indirect costs to come up with what the margin is on that.
I always think it is way easier to go cost-up than it is to go value back to cost.
Not sure that this helps?