How Do I Price My Products Or Services Properly? – Ask Clay Anything

Show Notes

Are you struggling to determine how to price your products and services? On today’s show, Clay Clark breaks down the proven method for how to price your products and services.

1. What are the fixed costs needed to deliver the Product or Service?
   1. Fixed Costs are costs that you will incur even if you do not produce one widget or do one service call
   2. Examples of fixed costs
      1. Taxes
      2. Management Layer
         1. You must have a confident and competent manager per 10 employees
      3. Insurance
      4. Utilities
      5. Cell Phone / Data
      6. Rent / Mortgage

1. You can give your clients 2 of the following 3 but never all 3:
   1. Cheap
   2. Accurate
   3. Fast

1. What are the marketing costs for advertising your product or service?
   1. You should factor in at least 10% of your revenue on marketing and advertising.

1. What are the variable costs needed to deliver your Product or Service?
   1. Variable costs are costs that are directly correlated to the producing the product or service.
   2. Examples of variable costs
      1. Materials
      2. Labor
2. You must make a 20%-30% profit on your products or services