Pricing strategy is something you have to consider right from start-up.  Your pricing strategy is not something you can easily change later on.  This is why making sure you have the correct pricing strategy is so critical.

Your pricing strategy is an element of your business that your clients count on.  If you change your mind on your hourly billing rates or how you are charging, your clients are likely to resist.  If your pricing strategy changes significantly, you risk losing your clients all together.

In a good economy, increases of five to fifteen percent are about as much as you can get away with.  If your pricing strategy is off more than that, then it is usually easier to replace clients than to try to pass through more than a $20.00 - $25.00 an hour rate increase.  

If your pricing strategy absolutely must be changed in order to remain profitable, that means you are now faced with finding new clients.  These new clients will be brought on board under the new pricing strategy but at what cost?  The price of client acquisition is, on average, anywhere from $500 to $1,200.

Rather than incurring these unnecessary costs, it is much better to begin with the correct pricing strategy from the beginning.  That way you can pass along minor increases in the same way any business does.

Bottom Line on Pricing Strategy
Pricing strategy is one of your most important considerations.  It will have long term effects on your ability to remain profitable.  If you choose wrong in the beginning, the mistake is not easily repairable.  The cost of losing clients later is not worth any perceived benefit of bringing on clients early using the wrong pricing strategy.

In this article, you’ve been introduced to Pricing Strategy. To learn more about how you can improve your knowledge about Pricing Strategy, 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.