The time to set the price of a service or product for your graphic material is one of the most important steps for a business , so it must be thought out very carefully! Maintaining an established profit amount and at the same time supplying what your client wants to pay is a difficult but fundamental task for the growth of any company.
So, how about knowing some criteria on how to set the price of your graphic material ? Check out!
4 questions that must be taken into account when setting the price
1. Material cost
When it comes to the material that will be used, you need to pay attention to the price or work that will be put into it. This way, you will not only have the profit of your service, but also the return of what you spent to build your client’s graphic material.
In this sense, pay attention to three requirements in the material used: weights , colors and finishes. These elements can tell you how much you will spend on what will be produced. Remember that the greater the weight, number of colors or finishes, the more costs you will have. Therefore, always have this information in your client’s briefing , so that you can inform the appropriate budget.
2. Hour value
Try to put together an estimate of the time you will use to finish the whole job. Remember that the more you spend on one job, the less you will have for another. Therefore, try to calculate the hour worked and divide it by the salary you want to have at the end of the month.
For example, if you work 100 hours a month and want a net salary of R $ 2,000, divide 2,000 by 100 hours worked + 30% of taxes. In this example, the cost of your hour would be R $ 26.00.
Bearing in mind how much you earn per hour, stipulate how long it will take from making to delivering the material to your customer. For example, if it takes you 3 hours to create a flyer and 1 more hour for possible changes, your price alone with the creation will be equivalent to R $ 104.00. In addition to the creation value, you should also consider the costs of printing and delivery.
3. Competitive price
It is necessary to take into account the average price that is being proposed by the competition. Also consider how much the potential customer wants to pay for the service and the added value.
In this sense, you can identify your customer’s perception of the product or service in question. For example, if the perceived value is high, you will have a chance to increase your profit. However, if the opposite occurs, your profit margin may be low.
However, evaluating the competition does not mean that you should charge the same amount as it. Each company has its costs and knows how far it can go. If your value is more expensive than the competition, try to show your differential instead of trying to match your price.
4. Fixed and varied costs
Finally, don’t forget that there are fixed costs that always need to be taken into account, such as electricity, rent, internet, among other costs. It is also necessary to think about the varied costs, which are expenses that vary according to your level of production or activities, for example, meetings, gasoline, transportation, business lunch, commissions, etc.