Need help creating agency pricing

Hello,

Friend and I are starting a digital marketing agency, but we are struggling to set pricing. We are going to take some local clients, we have developed packages but we are not sure how to price them. He is web dev and I'm SEO and SEM specialist. Pricing we heard is all over the place, and I'm afraid we will work for low price and then our agency will fail.

Does anyone have any process for this? and I'm looking for pricing of other agencies. I tried to find pricing of other agencies, but of course I couldn't find anything. I'm aware local is different than global market, but I would need to know what are other agencies charging so I could help my clients the best.

I would appreciate any input on this.

Thanks.

Bundewa said:

I tried to find pricing of other agencies, but of course I couldn't find anything

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How are you looking for pricing of other agencies? Are you contacting them? Or do you think you are going to find their price list on their website?

There is a famous technique and is calculating how much you want to earn per month and dividing it by the number of hours you expect to be working. Then multiplying it for the time you expect a work will take. You may miss at first, but you will refine it over time.

For example, if you expect to work like 8 hours per day 5 days per week, on average 23 days per month this means 23 x 8 ~ 185 hours per month. Say you want to earn $1850 per month this is $10/hr. Say you are expecting to work 10 hours on a given client for a specific work, so you might charge $10 x 10 hours = $100. Over time you will refine this, but this a good place to start.

Also consider the time you spend looking for clients is time you should charge them. It's kind of paradoxical but its how this works. Because in bigger companies there is a specific sales person looking for client for 3 developers at the same time, so the sales person costs are divided by 3 to calculate the final price. In your case, you might considering adding up a 30-50% to your price for that lost time looking for clients.

SirLouen said:

How are you looking for pricing of other agencies? Are you contacting them? Or do you think you are going to find their price list on their website?

There is a famous technique and is calculating how much you want to earn per month and dividing it by the number of hours you expect to be working. Then multiplying it for the time you expect a work will take. You may miss at first, but you will refine it over time.

For example, if you expect to work like 8 hours per day 5 days per week, on average 23 days per month this means 23 x 8 ~ 185 hours per month. Say you want to earn $1850 per month this is $10/hr. Say you are expecting to work 10 hours on a given client for a specific work, so you might charge $10 x 10 hours = $100. Over time you will refine this, but this a good place to start.

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Yeah, I should pick up the phone and contact some agencies, but I don't know how to approach this. I could call and lie to them saying I'm interested in their services, but this doesn't feel right tbh.

At the moment, we are thinking website + basic package of website maintaince per month, and everything else as an addon package.

I like your idea, very simple. Will start from there and will try to figure out our expanses.

Bundewa said:

Hello,

Friend and I are starting a digital marketing agency, but we are struggling to set pricing. We are going to take some local clients, we have developed packages but we are not sure how to price them. He is web dev and I'm SEO and SEM specialist. Pricing we heard is all over the place, and I'm afraid we will work for low price and then our agency will fail.

Does anyone have any process for this? and I'm looking for pricing of other agencies. I tried to find pricing of other agencies, but of course I couldn't find anything. I'm aware local is different than global market, but I would need to know what are other agencies charging so I could help my clients the best.

I would appreciate any input on this.

Thanks.

Click to expand...

If you're in need of professional assistance, please consider posting your request in the "Hire a Freelancer" section.

SEO Insulin said:

If you're in need of professional assistance, please consider posting your request in the "Hire a Freelancer" section.

Click to expand...

Keep forgetting you can hire professionals here. Not in the budget at the moment, but if this takes off will be looking for some coaching from an agency owner.