Post by fiweka1494 on Feb 27, 2024 0:53:30 GMT -5
Unlike estimating the value of a product, which is tangible and has very well-defined costs (purchase, taxes, imports, manufacturing, logistics, etc.), the provision of services is in a gray area of price composition. And if composing the price is already difficult, imagine charging for the service provision. In this gray area there are several traps for the entrepreneur, which can be avoided with good planning, contracts and, sometimes, the help of a support system for collecting service provision contracts. Even if you are already working as a service provider, this article will help you organize your billing structure in stages: • How to calculate the price of a service? • Billing methods for service providers • The importance of a contract in service provision • How to charge a defaulting customer? How to calculate the price of a service? It is very common for business owners to calculate their costs and place a profit margin on top to remunerate their service. Although it is not an administratively wrong way of doing the calculation, the stipulated price will not reflect the market potential that you can reach, the value of the solution that you will deliver to your client. When evaluating the price, you also need to calculate how much you want to earn for your service. It is very common for business owners not to charge the amount they believe their service is worth for various reasons, as well as aiming for a much higher remuneration than that practiced by the market.
And both sides have something to lose: in the first case, you can lose customers, as a very cheap service raises suspicions about its delivery and quality; in the second, it is necessary to know if there is a market willing to pay this amount. Therefore, carry out a market analysis and research the average value that is being practiced in your field of activity. This should be the best price guide for your service billing strategy. Then, check whether the value will be adequate to meet your pro-labore needs. Remember that a self-employed person may spend a month or two without a busy schedule, but the bills will not stop arriving during those months. In this scenario, it is Business Owner Phone Numbers List important that you add a reserve fund to your compensation calculation. Once you establish yourself in the market and provide a high-quality service, you will begin to be recognized and valued for it. At this point, then, you can add to your billing calculation a coefficient of expertise and reliability in the solution you deliver to the customer's problem. The golden tip here is the definition of price: what you pay for the value that is perceived. Therefore, throughout your journey, add value to the presentation of your service. Invest, for example, in your brand, in a good business card, in presentation materials, a website with testimonials from your customers and everything tangible to show your future customers the value of your service. Service provision charging modalities An extra value for your service provision is to facilitate payment methods for your client.
There are several ways you can adopt, however, some may be more suitable for one or another type of service provision. Let's go to them: 1. Punctual service for cash payment Among the most common means in this modality are payment in cash, check or bank transfer. In the first two cases, depending on the value of the service, it may be unfeasible (and even unsafe) for both you and your client to carry this value. Bank transfer can be a good option, as long as you and your client have an account at the same bank, or you will have to pay the TED and DOC fees between banks. Another option is to issue a bank slip . This way, your customer has the freedom to pay from any bank and even online, and you will receive the amount safely in your account. 2. High-value punctual service for installment payment Let's say that when negotiating the service, your client requested that payment be made in installments. In this scenario, the best option is to issue invoices for each installment in the form of a booklet . Therefore, at the time of contracting, your client will already have all the invoices with their due payment deadlines. However, you will need to have control of the due dates to charge your client for each installment, as you run the risk of them forgetting.
And both sides have something to lose: in the first case, you can lose customers, as a very cheap service raises suspicions about its delivery and quality; in the second, it is necessary to know if there is a market willing to pay this amount. Therefore, carry out a market analysis and research the average value that is being practiced in your field of activity. This should be the best price guide for your service billing strategy. Then, check whether the value will be adequate to meet your pro-labore needs. Remember that a self-employed person may spend a month or two without a busy schedule, but the bills will not stop arriving during those months. In this scenario, it is Business Owner Phone Numbers List important that you add a reserve fund to your compensation calculation. Once you establish yourself in the market and provide a high-quality service, you will begin to be recognized and valued for it. At this point, then, you can add to your billing calculation a coefficient of expertise and reliability in the solution you deliver to the customer's problem. The golden tip here is the definition of price: what you pay for the value that is perceived. Therefore, throughout your journey, add value to the presentation of your service. Invest, for example, in your brand, in a good business card, in presentation materials, a website with testimonials from your customers and everything tangible to show your future customers the value of your service. Service provision charging modalities An extra value for your service provision is to facilitate payment methods for your client.
There are several ways you can adopt, however, some may be more suitable for one or another type of service provision. Let's go to them: 1. Punctual service for cash payment Among the most common means in this modality are payment in cash, check or bank transfer. In the first two cases, depending on the value of the service, it may be unfeasible (and even unsafe) for both you and your client to carry this value. Bank transfer can be a good option, as long as you and your client have an account at the same bank, or you will have to pay the TED and DOC fees between banks. Another option is to issue a bank slip . This way, your customer has the freedom to pay from any bank and even online, and you will receive the amount safely in your account. 2. High-value punctual service for installment payment Let's say that when negotiating the service, your client requested that payment be made in installments. In this scenario, the best option is to issue invoices for each installment in the form of a booklet . Therefore, at the time of contracting, your client will already have all the invoices with their due payment deadlines. However, you will need to have control of the due dates to charge your client for each installment, as you run the risk of them forgetting.