A few years back, I decided to price my visual design services, not basing on the current market structure but rather based on the quality of services I offer to my clients, the time I invest and the expenses I occur during the execution of each particular task and service.
This did not only enable me to break-even at an early stage of my small business but also supported me to offer quality services to my clients, who later on have been referring me to other potential clients.
I was able to position myself slightly above the entry designer price range and continued to sell.
The current COVID-19 pandemic and crisis should be a reminder to young entrepreneurs and startups never to lower their services, especially at the early stage.
Pricing should be based on your expenses, the number of clients you have, the time and the value you deliver.
This will help you to survive even with a few clients, and still, give you an allowance of time to market yourself because the pressure to sell will be slightly less.
The Coronavirus Crisis
On the other hand, if you price your services lower, maybe because you want to beat the competition, sell more or match the prevailing market price, times like the COVID-19 pandemic can hit you hard!
For a creative business or a startups, losing a single client at this time is a big loss, especially if you have not been making enough-off your previous sales.
Spending enough time to research and plan before pricing your services is really important especially for us running service-based small businesses. For such businesses to make business sense, you must be having decent profit margins.
This can enable you to cover your business costs and save enough for your living expenses.
I wish you good luck in these tough times!