I often get asked whether or not having set service packages is a good idea. It’s a question that almost always leads to a really interesting discussion. Pricing packages at a fixed rate can be a great solution for some freelancers and small business owners, while they’re simply not an option for others.

As ever, it depends on the type of work you do and the kind of clients you work with.

Some types of projects will lend themselves perfectly to the creation of packages that can be proudly displayed on your website at a set price. For others, the amount you need to be charging will vary widely based on the scope and specifications of the task in hand.

In this blog post, I’m going to help you understand whether fixed service packages could be a good fit for your business and, if so, how to go about pricing them.

Are service packages feasible for your business?

The first thing to understand is whether or not creating set packages could be an option for your business and service offers.

If you regularly work on similar projects and you know they always take roughly the same amount of time, you might decide on a fixed price for that particular type of project. For example, if you are a translator, you might come up with a set rate for translating and certifying a birth certificate. If you are a copywriter, you might charge a fixed fee in exchange for a batch of e-commerce product descriptions. Or if you are a coach, perhaps you’ll decide on a standard price for tackling a specific topic with your clients.

At the same time, this might not be a feasible option for you if you work with agencies who dictate how they want you to charge for the job. Perhaps they have a policy that means they always pay the professionals they outsource to per hour or per word.

And what happens when there are lots of variables to take into account? These could include varying lengths of texts for the same purpose, shorter or longer turnaround times requested by end clients, or different formats to work in. For many of us, it's impossible to put together packages because the scope of each project varies significantly.

What are the benefits of pricing packages at a fixed rate?

If you are able to create set service packages for the kind of work you do, you can see some great benefits from doing so.

First of all, having fixed packages makes the quoting process very quick and easy. You don’t have anything to work out because you already know exactly how much you’re going to charge.

Secondly, this can also make it easier for you if you’re someone who struggles to talk about money or you find it hard to stand firm on your quoted prices. When you have a standard price that applies to everyone, it wouldn’t be fair of you to give a client a discount or preferential treatment, would it? ;)

In addition, if you do decide to publish the price of your packages on your website, it can help you to naturally filter out those clients who don’t have the budget to work with you while also removing a barrier for those who do. 

Sometimes, potential clients might avoid contacting you purely because they’re worried they might not be able to pay your rates. But if your fixed package prices are clearly stated on your website, potential clients will already know how much your services are going to cost them. This can save you time on both putting together quotes and negotiation.

How to price packages for your services?

One of the drawbacks of having specific prices for certain packages is that, if you get them wrong, especially if you’ve published those fees on your website, it can make it harder to correct them.

Pricing your services too low could lead to you having to work all hours to make ends meet. Since this isn’t sustainable or something we want, my biggest tip for pricing your packages would be to make sure you’ve put in the legwork to understand the numbers in your business and identify your hourly rate.

In my Charge with Confidence programme, I help participants calculate exactly how much they need to be making per hour in order to cover both their business and personal expenses without having to work all the time. This figure is essential when it comes to pricing your packages because if you know how many hours a certain type of project is likely to take, you can make sure you’re earning enough for the amount of work involved. To arrive at the final price for your package, all you have to do is multiply the number of hours you expect to spend working on these projects by your hourly rate.

In fact, as part of Charge with Confidence, I share my rate calculator spreadsheet with all participants. This includes a specific section dedicated to pricing packages that also allows you to take into account any variable expenses.

In any case, if you do decide to create fixed service packages, it’s crucial that you get your estimates and your prices right. If you’re unsure how long something is going to take you, I would always recommend overestimating rather than underestimating. This will help you make sure you’re earning enough money for the amount of time you’re spending on a project so that you don’t end up resenting any of the projects you’re working on.

If you’d like to create packages for your services but aren’t sure how to go about calculating them, you might want to consider taking Charge with Confidence. During our time together, I’ll help you calculate how much you need to be earning per hour based on your outgoings and the amount of time you have available to work each day. We’ll then transfer this figure to your services so that you can create packages you feel confident in.

Knowing that you’ve priced your services correctly can help you promote them more confidently. When you’re not second-guessing your figures all the time, it makes it so much easier to sell your services and stand firm on your quoted prices.

If you’d like a helping hand when it comes to pricing your packages, just click on the button below.

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