The price is right?

Our pricing was something we spent a long time on when starting Nudge. It’s always import to find a balance between what customers are willing to pay for your product (i.e. what customers see as getting value), and what we need to charge in order to be able to cover our costs and be a profitable business.

So how did we choose our pricing structure? These are the steps we took:

Step 1 – Know your numbers

First up, being accountants, we did our numbers in order to really understand what our costs would be. Knowing your costs is the first step towards determining what your price should be.

Step 2 – Do your research

We also did a lot of research into what Chartered Accountants, Accountants and Bookkeepers were pricing for their services. This provided us with an understanding of how the market valued these services. However, offering a completely different all-inclusive package for Start-ups and Small Businesses, we didn’t have a direct price comparison.

Step 3 – Speak to your future clients

We also went straight to Start-ups and Small Businesses and asked them. This is what they told us:

  • They didn’t want to sacrifice quality to get a good price. They wanted pricing which was reasonable, and at the same time they wanted to feel they were getting quality which we offer being Chartered Accountants with over 30 years experience.
  • They wanted a pricing structure which changed as they did. As businesses grow, they didn’t mind paying more because they recognise that more work would be required. However, when starting out, they did not want to be hit with huge accounting fees. That’s why a pricing structure that was scalable was really important.
  • They wanted fixed pricing so they knew exactly how much they would be paying and there would be no hidden surprises.
  • They didn’t want to pay for the software and then pay for us. They wanted a price which included everything. That’s why we decided to include Xero and MYOB Live Accounts subscriptions in our packages.
  • They wanted to be able to pick up the phone and call us without having to worry about paying for each minute they were on the phone.

We pulled all these steps together to come up with our pricing strategy. Read more about our pricing and packages here.

Cheers

Emma

Photo courtesy of Microsoft Office