-
-
- Showing Them The Money - When Is
It Best To Share Your Service Rates?
-
- September 30,
2009
- By Eric M. Scharf
-
There are so many different categories
of business services throughout the world from simple and quick to
complex and paced that you can no longer afford to take a generic
approach to potential clients. You never know who may be attracted
to your services from the average Joe or Jane to the CEO of a
fortune 500 company and you need to be ready to address their
needs at the drop of a hat in such a competitive economy.
There are several elements to the business information you need to
publicize, and one of the most important of those components
involves pricing. There appears to be a three-way split among those
who list service costs whether on a web site, on the side of an
office building, or in the yellow pages and those who do not, in
my experience. This split initially comes down to the not-so-simple
difference between one service that is almost completely
encapsulated, another service that is comprised of several moving
parts, and a custom or specialized service required to fill the gap
between those more traditional service types.
Many service providers prefer to display flat fees on their sites to
avoid the sometimes mind-numbing price negotiations in which many
deal-seeking clients are eager to engage, no matter how large or
small the service.
Other service providers prefer to display no fees at all, indicating
instead that their service fees can be negotiated based upon (1) the
number of goods being produced for the client, (2) the current cost
of raw materials to produce those goods, and (3) whether or not any
component of a client order needs to be outsourced for an additional
custom service (and current economic conditions almost guarantee a
client will still have to pay a custom price for a custom service
even if that service is coming from the same source).
Still other service providers display flat fees for custom services
while indicating to site visitors that "any requested alterations to
these basic services are negotiable before services have been
rendered," or something to that effect.
Familiar or returning clients customarily receive reduced rates on
the services they require, especially when increasingly or
repeatedly purchasing in bulk.
Objectively with service providers being comprised of "sellers"
and "entrepreneurs," you can pick the simplest service out of the
entire world economy, and incredibly, you can still expect to see
that service potentially broken down into multiple sub-services . .
. with free lunches becoming harder and harder to find.
Imagine being a client in search of a service provider who can chew
bubble gum. How many pieces of bubble gum is this person required to
chew at once or one at a time one or multiple flavors for how
long - while cycling, driving, standing, or sitting - indoors or
outdoors time of day - alone or in the presence of other
people with or without rest breaks to avoid lockjaw? Rest assured
the additional act of blowing bubbles with that bubble gum will
undoubtedly be considered a specialized service as every bubble
will be unique in shape, size, and life span.
So, ultimately, your sales aggressiveness, range and robustness of
your services, and desired quality levels of those services go a
long way in determining what fees, if any, are publicly displayed
online or in print for your current clients, your future clients,
and your clients clients.
|