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Tips For Determining What Rate To Charge In Your Home Based Service Business

By: Chris Simpson

Deciding to start a home based business requires careful planning and making decisions. One of the most important decisions that need to be made is what rate will you charge to your potential clients? There are a few factors that you must take into consideration when coming to this conclusion.

First of all do you have any experience in the services that you offer? Experience can include past employment, past freelancing or even past education. Potential clients become secure in your abilities if they can see that you have had past experience in what they need done.

This experience will equal a higher demand for your services and will let you charge a higher rate for your services. A good suggestion would be to research other companies that offer the services you offer or even somewhat similar services that you are offering. See what these companies are charging for their services and it may in fact provide a good baseline for what you would like to charge.

Something else to take into consideration is the time factor. Are you treating your business as a full time job or something you will do part time? Will a project take twice the time for you than it will for someone else? Or can you do a project in half the time another person can?

This will definitely affect the rate you will be able to charge for those projects. Also in retrospect, if you get a client who needs something rushed you may in fact be able to charge a premium rate for that project if you honestly feel you can produce that project in the time the client has specified.

Another tip for deciding what your rates shall be in your business is the option of Specials and Discounts. If this business is new you might consider with an opening special rate, possibly a discount to the first ten customers. Be aware that this may seem that you are working cheaply but if in fact if you do the job well it may give you your first of many loyal clients.

Loyal, happy clients will refer you to other clients which will keep your business successful and busy for a long time to come. This will give you a large increase in income all stemming from a small discount you offered that first client on your first day in business.

Another option would be to sell your services by the package. Customers can purchase your services for set amount of time or a set amount of tasks for a discount. Again this keeps your customers referring others and coming back for more services just as long as you listen to them and meet their expectations.

As you can see there are many options when deciding what rates to charge. A great rule of thumb is that rates are not set in stone and can be changed! Through trial, error and a bit of research you can see what works for you and your business. Remember as your experience and business grows so can your rate! So provide customers with what they are requesting to the best of your ability and your clients will come back wanting more!

Article Source: http://articlesltd.com

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