Every entrepreneur asks himself the question of how to calculate the price of a service. After all, consumer demand will completely depend on this, and, consequently, earnings.
Instructions
Step 1
To calculate the optimal price for the services you provide, you need to determine their cost. It is made up of your costs: variable and constant. The minimum price is the amount at which the client will pay for the services provided to him.
Step 2
Calculate your fixed costs. To do this, add up the costs of rent and utility bills, depreciation of equipment, remuneration of management personnel, if any. These are all those costs that you incur regardless of the number of services sold.
Step 3
Calculate variable costs. Their size varies depending on the volume of services you provide to your clients. These are consumables and raw materials, energy and fuel costs, employee salaries and charges.
Step 4
Determine the approximate volume of services that you can provide, taking into account your capabilities and consumer demand. Divide the cost amounts by this amount. The resulting result will be the minimum cost of the service that must be charged from the client in order not to work at a loss.
Step 5
Analyze the prices of your main competitors. Your firm's rates should not be much higher than these rates. The cost of services in your organization may be slightly higher if the quality of their delivery is higher. If you want to increase sales, then it would be more correct to make your services more accessible.
