LVRG Founder, Mike Cooch discusses the #1 mistake agencies make when pricing their services.
If you are selling agency services to small businesses, you must have a pricing model that allows doesn’t slow down your sales cycle too much (small businesses have very limited budgets and too high of prices will slow down buying dramatically) but also gives you the gross margins you need to reinvest in your business.
The price of your agency services must be built on a clear understand of the cost of the labor working on behalf of your clients as well as a realistic percentage of your budget going to sales and marketing, operations, administration, etc.
Make sure you understand these numbers and price your services correctly or you’ll never get ahead at your business, no matter how good of a job you do taking care of your clients!
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