Competitive pricing is often the best way to figure out what to charge clients.  With a competitive pricing strategy you base your rates on what other companies are charging.  The key to competitive pricing is to choose those competitors wisely.

Your local market will largely determine the range of competitive pricing.  How you position yourself in the mix is what we’re interested in.  Two main things to consider when using a competitive pricing model are:

  • Skill level of your competitors and their staff
  • Size of the client that you’re targeting

The companies you base your competitive pricing on go from the independent PC repair technicians all the way to small consulting firms.  Most of you are going to be somewhere  between moonlighters and solo practice full-time consultants.  By using competitive pricing you can determine the class of business that best matches yours, and then research their prices.

You should always try to stay in the upper range that the competitive pricing allows.  Pricing too low means you attract less desirable and less committed clients.  Low pricing, even though it is competitive pricing, tends to attract the bargain seekers. That’s not what you want.

Bottom Line on Competitive Pricing
Before you use a competitive pricing model you need to carefully consider who you are competing with in terms of skill and client type. Once you know that, then you can use competitive pricing to put your rates at the high end of the corresponding price range.  You’ll be able to attract the clients you want and still charge at the higher end by using competitive pricing.  

In this article, you’ve been introduced to Competitive Pricing. To learn more about how you can improve your knowledge about Competitive Pricing, just click here now to get access to a free one-hour audio training program on 5 Easy Ways to Grow Your Computer Consulting Business.