Pricing & profit optimisation — Pricing & profit optimisation

Service pricing

Hourly or package, three tiers and retainers — built on three clear numbers: cost floor, market reference and customer value ceiling.

The problem we address

Service firms usually price by feel or by a competitor's rate. Non-billable hours, overhead and different value for different customers go unseen, and packages are sometimes sold below cost.

What we do

  • Real cost per billable hour from salaries and overhead
  • A floor rate for the target margin and a check of current packages
  • A market reference from competitor rates and packages
  • A willingness-to-pay survey (Van Westendorp) of customers for the value ceiling
  • Basic, Standard and Premium tiers and retainer design

Deliverables

  1. Hourly cost and floor rate

  2. Profitability check of current packages

  3. Willingness-to-pay survey result

  4. Three service tiers with scope and suggested price

KPIs we would track

  • Margin per package and contract
  • Billable vs available hours
  • Sales share per tier

Who this fits

Agencies, consultants, service-led software firms, clinics and any business that sells time and expertise.

Frequently asked questions

Hourly or package?

Hourly shifts risk to the client; packages highlight value. A package with an hour cap plus tiers is usually clearer for the client and protects margin.

How many survey responses are needed?

Hoorad's tool analyses from 5 responses, but dozens of real customers give a more reliable decision.

Request a demo