Custom Quotes vs. Package Pricing, Part 1
Business owners have many initial decisions to make, and many hesitate when it comes to custom quotes vs. package pricing for their services and offers. There’s a lot to share, and pros and cons to both, so we will go over custom quotes here and in my next blog we will look at package pricing.
Like most things, there are pros and cons to choosing custom pricing. It depends on the service and how much of that service you can curate for each individual client.
But if you’re just starting a service-based business, custom services and pricing make a lot of sense. You haven’t worked with many clients. As excited as you might be to get your business moving forward, you don’t always have the necessary clarity. You’re not familiar with your ideal audience, don’t know how the process would go, and aren’t sure what results you’ll achieve.
Let’s look at the pros of custom quotes:
Scope Specifics
You can provide exactly what the client wants and needs, and there’s no doubt that clients can perceive the value of a custom solution to be higher because you are addressing their specific challenges and goals.
Specific scope also allows you to calculate your time and costs. I discuss this regularly with my clients. When they know precisely what they need to do for their client, they can realistically estimate how long it will take and the additional resources they may need, like hiring a subcontractor.
Conversion
When you present clear proposals with personalized details, you can increase conversion rates. With custom price proposals [link], every detail is laid out. Think about how many times you considered an offer but took a step back because the description of what services you would get was vague or general.
The Spice of Life
There’s going to be a certain demographic that buys into a package. That’s how they are designed. But custom pricing allows you to serve a variety of different clients with different needs because you’re going to customize each service.
It also separates you from your competitors who only offer packaged services. You can then promote your “customer-focused” offers.
Flexibility
Chances are you and your client have different timelines, ideas around project budgets, and life obligations. Custom pricing lets you scale projects up or down based on your client’s financial situation and time commitment.
And the Cons Are….
The Process
You have to know and understand quite a bit about your client’s business if you want to structure a custom proposal for them. You’ll have to get the necessary information from them directly, through questionnaires, research, and strategy calls, which will require time and attention from both of you.
The Time Investment
Creating custom proposals can take anywhere from hours to days to develop. Not only do you have to get through the process mentioned above, you have to create a plan for your work together. You can waste time second-guessing your decisions and overthinking what it’s worth and how to price it.
Communication
Potential clients looking at your website, blogs, emails, and social media posts may find the concept of custom pricing to be vague. They will search your communications for the details, but the details don’t actually exist until you’ve gone through your process and taken the time to create the plan and proposal.
Providing custom services and pricing allows you to focus on helping people with individual solutions. Once you’ve been in business for a while and get to know more about your ideal client, experience your process and get familiar with the results, you’ll establish a keen sense of which pricing is best and when.
Navigating your pricing structure is one of many things you have to address as a business owner and that I can help you with. Schedule a free call with me today to learn more.
P.S. Ready to stop spinning in place and get to the other side of your goals? Here are several ways I can help:
Download my free resource Show Your Schedule Who's Boss - these tips and strategies will help you take control of your time. This is the first step in taking control of your business - kathleen-lawson.com/show-your-schedule-whos-boss
Join our next CEO Power Planning Session and spend two and a half hours ON your business. During this facilitated workshop, you’ll set and prioritize your next 12-week goals, break them down into an executable action plan and create a resource plan - kathleen-lawson.com/ceo-power-planning
Schedule a Laser Consult Session. This is a one-time 90-minute session for the entrepreneur who needs expert strategic guidance. Use this time to work through an idea, develop an executable 12 week action plan, streamline or create a process or system, or improve routines around daily and weekly execution. kathleen-lawson.com/laser-consult