Pricing Your Small Business Products and Services

CARY, N.C. - For years, Wendy Coulter resisted consultants' cries for her to raise the price of services offered by her firm, Hummingbird Creative Group. But when she finally gave in, the experience made her a believer.

Popular Today in Business: All Popular Articles The essential information on your fixed costs paired with the calculation of your variable costs will enable you to price your products and services with the accuracy and precision required to maximize your profits .

Great products and services don't guarantee success. You also have to price them correctly, which requires knowing your customers well and what they're willing to pay, as well as what your competitors are charging. You also might consider market segmentation, product bundling, and both the tangible and intangible benefits you're selling.

If you own a small business or are self-employed, sooner or later you will be asked to work for free. The more successful you become, the more requests you'll get. But with the right response, you can turn these freeloaders into something positive.

The most common question I receive from aspiring freelance writers is this: "What should I charge?" It's hardly an inquiry unique to writers - it is an important consideration for freelancers of every stripe, in every niche, from lone individuals to larger firms and agencies.

You're a giver-you don't mind giving your clients a little extra something here and there. You do it because you love your clients (and frankly, you need the work). But ... that's called scope creep. It's what happens when you outline a project or service and then the requests start coming in: "I was wondering if you could ..."