Episode 25 - One Simple Hack: F*** Pricebooks - The "Service Rate Method"

Simple pricing allows you to focus on giving premium service, which also allows you to build more rapport and engagement. One method many electrical companies use is a pricing book, a menu of services you offer, and how much they cost. However, there are tons of issues associated with using this system. 

By listing the hours it would take, the price it costs, and the exact thing you need to do, it can become complicated for you and your team. The problem here is there's a lot of room for mistakes and miscalculations. You might undersell a certain project just because you misread a figure or made a calculation error. 

Another issue is the pricing book can become outdated quickly. As technology progresses and new materials are used, the cost of your services will probably change. This means you'll have to constantly update your prices to remain competitive and profitable. Now, isn't that just time-consuming? You'd rather focus on providing better services than looking at prices, right?

Considering all these, going for the "service rate method" is the best way. A flat rate that's built out of the experience and grows as your business does. It takes all the guesswork out of pricing, and it's also very easy to update. You need to believe in the rate you set, and establish a price accordingly so that when you get asked about the price, you can confidently answer without stuttering. 

Learn more about this by checking out our podcast. We have talked about how you can set the right pricing for your services. You’ll learn how to come up with a rate that works best for you, what clients will and won’t pay for, and how to confidently communicate value to potential customers. So don’t wait anymore and check it out!