Different Models Of Agency Pricing - Which One Is Yours?

According to SEO services in Kansas agency pricing decides the way in which you work with your clients and what all are your strategies of work with them. Earlier it was the trend to set a way and expect 30% profit margin but today the ways have changed. You need to be dynamic in deciding your pricing models because there are many strategies which have evolved overtime.

Pricing levels decide how you sell your services to your clients, your financial stability and your staff’s retention rate and happiness.

Here are some of the latest pricing levels of agencies. Find out which one is yours and which one should you adopt:

1.Pricing on the hourly basis:

This strategy is not much recommended because it seems that the agency is more inclined towards money than providing their services. In this pricing model the agency decides to exchange price for a set time. They charge for their services on the hourly basis.

This strategy is not much successful as people think that it emphasises more on cost rather than value of work to the agencies. This strategy works against the benefits of client because the more time agency will take it will be paid more. In this way more issues between the client and the agency pop up and their relationship does not last long.

Clients start asking more questions like are the best minds working on the projects? What are the strategies you are using in completion of the work? How are you dividing the aspects? And a lot more problems come in between them.

2.Project based pricing:
In this type of model the agencies discuss with the clients earlier and tell them the estimated cost of the project before hand. This they ask them to pay in installments or if they can pay in advance. The whole estimate includes the total time, the no. of resources and people and the criticality of the project.

This model is also not recommended much because the estimated price can fluctuate afterwards. No one knows neither the client nor the agency that what type of requirements can emerge in the further phase of the project. It is possible that your client asks to add more and you charge more price than estimated. This creates chaos and confusion between the two.

3.Value pricing:

This is the latest model being practiced by many agencies like SEO services in Kansas and other companies. This is the best way for time being but it also has some drawbacks. In this model the agency demands on the basis of the end result. They are paid for the value of their work. If the product created by the agency is worthwhile and acceptable then the cost of the product is much profitable for the agency.

In this model the agency has to be very specific in analysing the wants and demands of the clients and dedicate themselves towards designing the project.