pricing a service

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rubberjohn
Forum Contributor
Posts: 193
Joined: Fri Feb 25, 2005 4:03 am

pricing a service

Post by rubberjohn »

Hi,

Anyone who has developed a paid online service - how did you go about pricing it? Do you use a set formula for each service? Do you do it yourself or get an accountant to handle it?

Thanks
alex.barylski
DevNet Evangelist
Posts: 6267
Joined: Tue Dec 21, 2004 5:00 pm
Location: Winnipeg

Re: pricing a service

Post by alex.barylski »

Seems to me, a good way of doing it would be to find your closest competitors and average yourself somewhere in between. Price to low, and you seem cheap and desperate, price to high, and you better be offering extreme value added services or something, in between is always good. :)
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Eran
DevNet Master
Posts: 3549
Joined: Fri Jan 18, 2008 12:36 am
Location: Israel, ME

Re: pricing a service

Post by Eran »

I'd suggest you read the following article and also follow the links - http://gigaom.com/2009/09/13/what-we-ca ... engineers/
fcolor
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Re: pricing a service

Post by fcolor »

The best is to calculate costs on monthly or annual basis (it depends how do you sell) as well as the desired profit margins. You also have to watch at the competition.
Selkirk
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Joined: Sat Aug 23, 2003 10:55 am
Location: Michigan

Re: pricing a service

Post by Selkirk »

THis one is a classic: Camels and Rubber Duckies.
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