Pricing Your Services

Philippos Tsamantanis
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A very important aspect of successfully running a business is pricing your services correctly. To keep your customers happy, as well as attract more customers, you need to make sure that you are charging them the optimal price.

First you should calculate all your costs. How much do you spend a month on instructors? How much do you spend a year on equipment? You should calculate all fixed costs, for example how much rent you pay for your center, and all variable costs, such as hiring more staff in peak season. After you have all your costs figured out you will know how much you need to make to generate profit.

Pricing

Find out how much your competitors are charging. You need to understand your market and how much your customers are willing to pay, and the best way to do that is to take a look at your competitors. Then you can either match their price or try to beat it based on your costs.

Decide on your pricing technique. Do you want to have cost plus pricing, where you add a percentage to your services based on cost? Or do you want to have value based pricing, where you decide the price based on how much value your customers give it? Both pricing techniques are good and you should do more research to see which one will fit your center better.

Lastly, stay alert. Pricing is a variable thing, and you should be always talking to your customers and keeping an eye on the market to see if any changes need to be done.