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Welcome to EasyStepUK supporting migrants to build successful businesses in the UK.
Pricing is one of the most important and confusing parts of running a business. Set your price too low, and you won' t make enough money. Set it too high, and customers may walk away.
In this video, we' ll help you find the right balance. Whether you're selling products or offering a service, we' ll explain how to price fairly, confidently, and sustainably.

Part 1: Why Pricing Matters
Pricing is not just about covering your costs it affects:
Your profit
How people see your brand
Whether customers buy or go elsewhere
A good pricing strategy shows that you understand your market and your value.

Part 2: Understand Your Costs
Before you can price anything, you need to know how much it costs you to create or deliver it.

For a product, include:
Raw materials
Packaging
Transport or delivery
Time spent making it
Overhead (e.g., rent, electricity, website, insurance)

For a service, include:
Your time (set an hourly rate)
Any materials or tools
Travel
Marketing and admin costs
Software or subscriptions

Tip: Track everything, even small expenses. Use a simple spreadsheet or free accounting software like Wave or Zoho.

Part 3: Know the Market Rate
Research what others charge.
Look at similar businesses near you or online
Check marketplaces like Etsy, eBay, Fiverr, or local competitors
Ask in Facebook groups or forums

Ask yourself:
What do other people charge?
What do their prices include?
How does their quality compare to mine?
Don' t copy blindly use this to understand your position in the market.

Part 4: Add a Profit Margin
You' re not just covering costs you' re building a business.
A profit margin is what you add on top of your costs to make income.

For example:
If your cost is £10, and you want a 50% margin, your price is £15
For higher-end services, 2x or 3x the cost may be standard

Profit gives you room to:
Grow your business
Pay yourself properly
Cover unexpected expenses
Invest in tools or marketing
Be confident your time and skills have value.

Part 5: Decide Your Pricing Model
Here are a few simple models to choose from:
1. Fixed Pricing
Great for products or standard services.
E.g., “Cleaning service: £50 per session”

2. Hourly Pricing
Best for flexible services.
E.g., “£30 per hour for tutoring"

3. Tiered Pricing
Offer basic, standard, and premium options.
E.g.,
£10 = Basic (1 photo)
£25 = Standard (3 edited photos)
£50 = Premium (full session)
Tiered pricing works well for digital services, beauty treatments, coaching, and more.

Part 6: Communicate Value
Many new businesses worry customers won' t pay more but people don' t just pay for the product, they pay for the value and experience.

Clearly explain:
What they get
Why it helps them
What makes your offer different

Example:
“£30 for one-hour maths tutoring by a qualified A-level tutor with 5-star reviews includes free homework support after the session.”
Confidence sells. Don' t apologise for your price explain the value.

Part 7: Know Your Customer
Different people will pay different amounts depending on their needs and income.
If your target customers are:
Budget-conscious parents = offer value bundles
Business owners = offer time-saving, reliable services
Students = offer discounts or flexible rates
Match your pricing to your audience. You can even offer more than one option to serve different groups.

Part 8: Avoid Common Pricing Mistakes
Mistake 1: Undervaluing your work
This is the most common issue. People underprice due to fear or lack of confidence.
Problem: You burn out, don' t grow, and attract only bargain hunters.

Mistake 2: Ignoring your own time
Your time is valuable. Don' t forget to pay yourself fairly in the price.

Mistake 3: Charging based only on competitors
You' re not them your costs, experience, and value may be different.

Mistake 4: Not raising prices
As your skills grow, you deliver more value. It' s okay to adjust prices yearly or offer new packages.

Part 9: Test and Adjust
Pricing is not permanent. You can always test, gather feedback, and adjust.

Try:
Offering an intro price, then increasing
Asking regular customers for honest feedback
A/B testing two price points for digital products
Track what sells better and what makes your business sustainable.

Part 10: Build Long-Term Confidence
Fair pricing means:
Covering your costs
Making enough to grow
Offering real value to your customers
It' s not about being the cheapest it' s about being the right choice for your ideal customer.
As your confidence grows, your pricing will too.

Thanks for watching!
We hope this helped you understand how to price your products and services fairly.

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