Pricing policy dwells at the center of virtually every transaction, and clear and consistent operating guidelines are at the center of business success. Hence, security dealers and integrators are under immense pressure to get their price points dialed in just right. Ask too much, and you risk limiting your customer base. Ask too little, and you may limit your profitability or client perception. There are many factors to consider when developing your prices. We will explore the difference between fixed vs. variable costs, cost-plus vs. value-based pricing, how to build a pricing strategy, how to prove your worth, and the pros and cons of raising or lowering prices.
- How to value your time, labor, and general overhead
- Assessing your liability and risk, as well as overall profitability for providing monitoring (and other RMR services)
- What factors are involved in determining the appropriate profit that any given job should yield
- What are the fundamentals of basic pricing formulas for commercial and residential service contracts