Phone Number

+91 85889 27042

Why OMT?

Determine How Much to Charge Next: How much will you charge? Pricing your products or services might be one of your most difficult first tasks. Should you match or undercut what your competitors are charging? Position your brand as a “premium” one, with accordingly higher rates? Or just take whatever the client or customer will give you? The wisest answer probably charges what the market will bear, but that’s hard to determine even after doing the market analysis recommended above. One quick calculation: Charge at least double your current salary to come up with a freelance rate or to set a target income for your business sales. A safer method, however, is to calculate how much it will cost you to run your business—monthly overhead for things like advertising and office supplies, estimated taxes, and income you want—and then add a profit margin between 10% and 30%. That’s how much you should aim to bring in for your business or self-employment income. Here’s a more in-depth guide to figuring out how to charge as a freelancer and Shopify’s recommended strategies for pricing retail products. But don’t sweat the pricing too much at first, especially if you’re selling something that’s in a market niche of its own. When Zapier started in 2012, for example, there weren’t any similar apps around for comparing pricing plans, so the three co-founders struggled to know what a good price for Zapier would be. Co-founder and CEO Wade Foster shares Zapier’s initial, random pricing scheme: Eventually, we realized we were getting to hang up on the details and decided to launch with something fun even though we knew it wouldn’t be perfect. Our first pricing followed the Fibonacci sequence at $11, $23 and $58 for the plans. [Ed. note: In the Fibonacci sequence, the first six digits in the series are 1, 1, 2, 3, 5, and 8.] The plan names where Amp, Ohm and Volt keeping with the electricity theme too.

And we had people signing up for plans right away!

It really did prove to us that in the beginning people spend too much time thinking about perfect pricing instead of good pricing. And, of course, over time we’ve learned a lot more about what people value and how pricing plans affect the growth of the business. So we’ve been able to iterate and improve.