She’s not too sure how to price her services, so she explores the different pricing strategies.
First she considers a pricing strategy based on costs. This best suits customers with lower budgets and businesses able to keep costs low. If Sarah’s costs rise and she has to charge more, she risks losing her price-sensitive customers. Sarah decides pricing based on costs is not the right fit. She wants to create lasting customer relationships.
Next Sarah looks at pricing based on her competitors. She knows what her old agency used to charge. She researches how other graphic designers’ price their work. She reflects on their level of experience and business expenses, e.g. home office vs central city studio.
Sarah decides to set her prices in the mid-range. She’s more experienced than her low-price competitors. As she works from home, her costs are lower than competitors at the top end of the price range. To attract customers to her new business, she decides to offer an introductory discount.