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    7 Tips for Pricing Your HubSpot Business for Maximum Profit

     7 Tips for Pricing Your HubSpot Business for Maximum Profit

    Intro :

    How much should you charge your clients? This can be an incredibly difficult question to answer, especially if you’re just starting out in the field of HubSpot consulting and marketing. But you don’t want to price yourself so low that you end up making too little money, but you also don’t want to price yourself so high that clients are turned off by the cost. Here are seven tips that will help you set a pricing structure that works with most businesses—especially those that use HubSpot products like Marketing and Sales Hub, or Service Hub.

    1) Understand the value of your time

    Once you’ve put together a detailed plan and have projected your monthly sales, it’s time to calculate how much profit you can expect to make. To do that, divide your monthly income by $3000 (the average price of an employee) and take off $1000 (for a bit of extra cash). This should give you a ballpark number of users necessary to generate Hubspot pricing per user profits. While having access to employees can be helpful, they come with other costs attached—namely payroll and training. If you want more detail on how to calculate Hubspot API pricing, we'll get into those details in future posts.

    2) Know what you can charge

    The first step to figuring out how much you can charge is finding a pricing strategy that works with your company. As the owner of a small business, it's important to know what your monthly sales will be and understand what costs are involved in running your business. After gathering that information, use our pricing calculator to set pricing based on cost and profit goals. If you're interested in using our API or if you've already deployed it into production, check out our HubSpot API pricing page to get an idea of how much each call may cost. And finally, let us help by providing a marketing package that fits your needs – find one here!

    3) Breakdown pricing into smaller chunks

    This may seem counterintuitive, but one of the best ways to optimize your pricing is to make sure you have a base price that includes everything. This way, you have flexibility to discount up from there depending on what else you're offering. You can take it one step further by breaking down your services into smaller chunks and including that in your prices: Account Management + ____ = $_________ Project Management + ____ = $_________ Social Media + ____ = $_________ Strategy Consulting + ____ = $_________ Inbound Marketing + ____ = $_________ Valuable extra stuff should cost more: If you offer something of greater value than what's included in your base price, then it should cost more.

    4) Provide discounts when appropriate

    Offering a discount sends a subtle message to your customer that says, I want you to buy now. In some cases, offering a discount can also make it easier for them to agree with you on the price. However, there's one time when offering discounts might actually be bad. This is when you have an important contract negotiation coming up in which customers expect you not to negotiate on price. If you offer a discount during that time, it could hurt your negotiation credibility and set back your business in ways that aren't immediately obvious until much later down the road. Be cautious about how and when you use discounts.

    5) Look at competitors’ prices as a guide, but don’t be afraid to experiment with higher prices

    How to Use Competitor Prices to Set Your Own, by Jeff Levick, Co-Founder of Yelp: When deciding how much to charge for your product or service, look at what your competitors are charging. Competitors help determine pricing in most industries, says Jeff Levick, co-founder of Yelp. The reason is that they tend to serve as a benchmark—an idea of where you should be setting your price. The problem with using them as a benchmark is that if you’re entering a new market and don’t have direct competitors, there’s no one else to use as a reference point.

    6) Don’t forget about your time investment - sometimes it’s worth more than money.

    There are different ways to value your business. Sure, you can rely on a simple, one-size-fits-all pricing model like HubSpot’s per-user pricing strategy. But if you want to maximize profit, don’t forget about your time investment. As any seasoned entrepreneur will tell you, running a business isn’t just about money—it's also about how many hours and resources you invest in that business every week.

    7) Consider long-term revenue - ask yourself whether you want one big check or many smaller checks over time.

    By evaluating your long-term revenue potential, you can create a pricing strategy that will scale and grow your business. If you want one big check, it may make sense to set a higher price, while if you want many smaller checks over time, it might be worth testing lower pricing. This can have an enormous impact on profit: Consider having three monthly price points at $300 per month, $600 per month, and $900 per month; all of these customers pay $3,000 over a year—but at different rates. Moreover, if each customer stays for only six months before churning (or canceling), selling 10 customers at $300 is more profitable than selling two customers at $900—even though both sets of customers pay the same amount of money over time.

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