Last week, we analysed the elements to take into account when pricing our services. Today I am going to talk about different pricing strategies in which you could apply what we learnt last week. Let’s start!

10 pricing strategies

1. Price and its psychology.

This could be one of the most used in the market. It is based on how prices affect our clients mind and how to change their behaviour when they buy services from us. For that purpose, it is likely to find prices like £999 instead of £1000, for example.

2. Pricing based on cost.

This strategy is based on the costs of producing certain products or performing certain services, as well as the delivery cost.

For example, this would be the strategy used by a translator that bases the pricing of his translations on how much he invests in CAT tools, professional association memberships and the methods of delivery used.

3. Cost plus pricing.

This one is similar to the last one, it is also based on the cost of production and delivery, but it also add X% to increase the revenue of each assignment.

4. Penetration pricing.

When a company wants to enter into certain niche in the market, it normally starts lowering the prices of their products/services to attract a solid clientele. Once they are well established, they will increase their prices.

It is the case of most students or new freelance in the market that start pricing their services low to attract more clients. They problem is that they don’t always know how to increase their prices afterwards -we we talked about that later on this month- do you agree with this strategy?

5. Skimming pricing.

This is the opposite case. Company that wants to enter into the market, but they target their products to premium clients. That is why they start with very high prices so that only certain clients can afford their products. Once they are established in the market, they lower their prices to allow other clients to buy from them.

6. Premium pricing.

In this strategy, prices are high in order to reflect the exclusiveness of the products or services that are in offer. The products and services must be different from those that are being already offered in the market.

In my opinion, this strategy must be our aim as freelancers. We must always try to be different from the rest.

7. Optional pricing.

This strategy is based on offering extra services to the ones that are already in offer to maximise their turnover.

For example, a translator specialised in website localisation that also offers key word research and SEO-optimised website copies. He would charge more for these extra services that could be of interest for his clients.

I will keep talking about this through my newsletter at the end of the month.

8. Pricing based on product lines.

In this case, we would be setting different prices for different products within the same product line depending, for instance, on the benefits that these products offer to your clients.

9. Bundle pricing.

Or the popular “buy one and get one free”. In the translation industry, this could be the discount that some translators offer depending on the volume of the assignments.

Personally, I don’t agree with that strategy because, although long assignments mean more income at the end of the day, it also means less time to look for new clients or work on your marketing strategies. I am interested in your opinions on this issue, so leave a comment below!

10. Competition pricing.

A market research is involved in this last strategy in order to analyse how our competitors are pricing their products. From that research, we could do three things: price our products higher, lower or the same.

 

So, now it is up to you? Which one would you prefer for your business? Have you ever used any of them? Did it work?

PS: On Thursday I will talk about how to communicate your prices to your clients in an effective way. How does it sound?

PS2: Do you want to know how to elaborate effective quotations that your clients will accept? I will talk about it at the end of the month and only through my newsletter. Subscribe now before it is too late!

Follow me on:

Feedly | Newsletter | Feed | Facebook | Twitter