The issue of determining the price of services is controlled by the legislation, but there are a number of differences from the pricing of goods, since services are intangible - they do not need to be stored.
Instructions
Step 1
To form prices for the services of a company, be sure to take this circumstance into account, determine the goals of pricing, analyze the demand in the market and the price range of competitors, calculate the costs.
To maintain a stable position in the market, many start-up firms set low prices, respectively, receiving small profits. We can say that such firms are stable "to keep afloat".
Step 2
Firms that primarily pursue the goal of economic growth are pursuing rigid pricing policies. In addition, a high price can indicate a good quality of services provided, which will lead to a large number of satisfied customers, and, accordingly, to profitability. In this case, even a decrease in the number of customers will be offset by high prices.
Step 3
It is important to correctly determine the consumer demand for services. It is necessary to conduct market research in the service sector or use expert estimates in order to have a clear idea of the volume and price that consumers will be willing to pay for services. Perhaps, according to the results of such an analysis, it will be completely unprofitable to engage in this type of activity. However, you can find ways to develop this service sector to a level that can be of interest to a large number of clients.
Step 4
If there are many competitors on the service market, the price should be average. You should not be guided by the price of the leader in this area, but you also cannot lower the price, especially if the quality of services is very high.
Step 5
Identify the factors that can influence price formation. That is, prices may be different throughout the year if the services provided are in great demand at some particular time of the year. In a season when the demand for services is low, use the differentiation method by providing discounts and setting different prices for different categories of citizens. It is necessary to take into account all these factors in order to calculate profit, not losses, at the end of the year.
