How to Price Correctly in a Service Based Business

Pricing your services can be tricky. With a lower product cost, many small business owners underprice their services and end up hurting their profits unnecessarily. One of the biggest mistakes is - how to account for the money you pay yourself.

When setting your prices in a service business, you want to make sure you are collecting enough money to cover wages, owners draw as well as your business expenses. In this video, we will walk through the steps you will want to take to price your services correctly.

Don’t leave profits on the table. Price your services correctly and take home the money you should

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Want to Dive in Deeper & Learn More About Your Numbers?

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Want more? Here are some other videos to help…

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PLAYLISTS TO CHECK OUT:

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FREE GUIDES / TOOLS

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Books I Recommend to All Small Business Owners – 5 Must Reads

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👉 DISCLAIMER: I am not an attorney, CPA, bookkeeper, insurance agent or financial advisor. My videos/podcast are for entertainment & educational purposes only and should not be construed as tax, legal, insurance or financial advice. Please seek out a qualified CPA, attorney, or specialist as needed. I’m sharing my experiences with my businesses and those I have worked for and/or helped coach.

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WHO IS THIS FOR: small business owners who serve their local community, local small business owners, service based business owners, mobile businesses, brick and mortar businesses, handymen, landscapers, pool cleaners, cleaning services, carpet cleaners, window cleaners, ice cream shops, QSRs, restaurant owners, mechanics, plumbers, electricians, real estate agents, dog groomers, franchisees, tradesmen, appliance repair, dog walkers, insurance, pet business owners, cake makers & those looking to increase profits, boost sales, improve processes and develop stronger teams. Entrepreneurs who want to make more money. Those who want to know their business numbers better!

#BABOLearning #KnowYourBusinessNumbers #SmallBusinessOwner

[BadassBusinessOwners]

What is the Hardest Part for You When Setting Your Prices? - Tammy

[georgesantillan]

When calculating expenses do I need to incorporate both business and personal? For example home rent and office rent.

[vikasrajak]

Superb, , , you hv just opened my eyes ..
thank you for this video...

[nathanjackson]

One major factor missing from this equation is what is the expected price from the market? What is the customer willing to pay based on the market. If it's lower than the price you come up with you're not going to get the business. Sometimes you have to find ways to lower your costs or make less profit to get the sale.

[josephsy]

loved the way this video was presented thank you!

[richardperera]

Excellent information, well presented. Thanks

[MrsAJB]

Really good information! Does it make sense to make a journal entry for a working owner to account for top line expenses on your P&L?

[ItsaVibe]

Hello, Thanks for the great video!
Trying to figure out where to start with pricing for a new business. It would be something like a home masseuse, where I go to their house for less than an hour (10-15 mins). They might have the service 1x a week or 7x a week. So gas and vehicle related expenses would be the main costs and emplyee at $20hour. I'm thinking a recurring automatic charge depending on how often the customer wants the sevice, to make collecting payment easy. I just was wondering where you would start the pricing for each visit. It would be very local, btw. My own hood.

If you can, I know its not exaclty on topic. I'm just brand new to business. Thanks gor your sevicies!

[introlotus]

Great and simple examples! Although the handyman you use in this example needs to charge much more! lol

[kimberlypeters]

How do i price for a dog groomer? Ive researched several different ways and get a very vague answer. I just purchased a building that i was lucky enough to have paid for it in cash. This is my first business venture on my own and i obviously dont have a PNL statement. So how do i know and how do i make sure im getting paid properly and the business stays out of the red? When it comes to products im using (shampoo, conditioner, etc) do i break that down into how many uses i get from say a 5 gallon bottle? Thank you for the amazing videos. They are definitely informative, but they do lead you to other questions, lol.

[whoisrobzilla]

Theres no business savings For rainy days??

[kolisaxinidlu]

I provide a service that requires me to employ other people, assist client design the method they want to use because processes are unique based on the client needs. I also get services from other providers providing services to my company to do the client's work. What is my cost base?

[atharvawaske]

Can you please tell me how to set price when we have debt or investors money in our business?

[dsc]

How would a new business owner calculate expenses since when starting you have more of a lost than profit. So in that situation how should you go about figuring a price for your deliver service ?

[lilymary]

what is the 50 parts which you say in costs