How to Price a Service as a Small Business
Service pricing should account for delivery time, preparation, overhead, expertise and the value delivered to the customer.
The basic formula
A practical starting point is to estimate total delivery cost, then add a profit allowance that fits your market and positioning.
A simple example
List the hours needed for delivery and communication, add direct project expenses, and account for revisions or contingency. Compare the result with customer expectations and competing offers.
Practical tips
Do not rely on competitor prices alone. Track actual time spent on completed projects and update estimates when work repeatedly takes longer than planned.
Put it into practice
Use the free SoloBizKit calculators to test your assumptions and compare different scenarios. Keep your inputs and assumptions up to date as your business changes.
This guide is for general educational purposes only and is not financial, legal, accounting or tax advice. Rules and circumstances vary by location.