How to price concierge services

After you've started your business, it's important to price your services so that you can grow and be profitable. But how do you know what prices are reasonable? Thus this post will teach you how to price concierge services to maximize your earnings.

Simple Way to Bill for Concierge Services

As a professional, you will make your living primarily through services and sometimes an additional cash tip. The process of developing a referral agreement is one way to make your business more successful. In many cases, it's not just about getting people in the door but also being able to convert them once they're here.

According to a report issued by Payscale, it is assessed that concierge service providers in the United States have an average rate of around $12.83 an hour while some charge higher rates up to $25. Though, this significantly supports employees of hotels and other hospitality businesses instead of independent contractors.

Remember that your service rates will be mainly resolute by how much value you or your services provide and by the average salary in your location and the overall budget of your customers. According to Payscale, concierge salaries range from $21,000 to $41,500 per year. Whereas Glassdoor reflects a range of around $25,400 nationwide.

Hence we can say that your own main income stream depends on business reputation, marketing expertise, competitive rates, and other similar factors.

How much should you bill your customers for your concierge services? This question is hard to answer because it depends on the economic ability of each client and their level of perceived value. But some considerations will help get started:

Know the worth and value of your concierge services

Some tasks require a personal touch and special expertise. In addition, if the client needs assistance in an area where it is impossible or desirable for them to complete their task themselves, you can make up some of that difference with your fee. For specialized services, you can charge your clients by task or on an hourly basis.

Determine the cost to deliver desired results

You need to consider the total cost involved in fulfilling the task in the best way. Here you must factor in all the associated costs and expenses as well. The simple formula to price concierge services can be your hourly rate and the total cost or expenses involved in fulfilling the task. 

In simple words, you should perform a detailed break-even analysis to determine the point when your variable expenses and fixed costs are covered. Then you can add your profit margin when finalizing the bill.

Know the market rate for concierge services in your region

It is seen that concierge service prices in urban areas are greater than in rural areas and simple to compare. Thus you should know what your competitors are charging for the same services. To do that, the quickest way is Google. You will find various companies offering similar concierge services to customers, so be ready to demonstrate how your concierge service is dissimilar when pricing your services.

In the End:

Good pricing is an art, and it’s not easy to know what your customers want. You might be tempted to charge the same price as every other concierge service in town with little thought for how much time you spend on each client. But this can lead to a race-to-the-bottom scenario where no one makes any money at all.

At Fairly Even, we've got a better solution that will help maximize your earnings while still providing top-notch services. Contact us now so we can work together to develop a strategy tailored just for you.