How to Price Your Services To Increase Profits: Holiday Pricing Edition

Most businesses see a 300% increase in revenue. According to consumers spent $14.13 billion in 2020. One of many downsides of a holiday sales campaign is the potential decrease in profits. Increased revenue does not equate to increased profits. Most businesses struggle with holiday pricing due to the following:



Businesses don’t understand their fixed and variable costs.

Know your numbers! Before you research any competitor’s pricing, understand your costs first. This helps you understand the ballpark of where your prices should fall. Here are examples of which costs are fixed vs variable:

Fixed Costs

These costs remain constant no matter the sales activity nor are they dependent on production output.  

  • Mortgage/rent
  • Auto payments
  • Insurance
  • Salaries and wages
  • Monthly software costs

Variable Costs

The costs change/vary depending on sales activity. 

  • Specialized software used as needed
  • Contractor wages (part-time support)
  • Raw materials
  • Campaign marketing and/or branding
  • Sales commissions

Here is our proven process we use for helping our clients price their services:

  1. Calculate all fixed and variable costs using our profit calculator.
  2. Set a sales goal across your suite of services. 
  3. Measure the results of your efforts (traffic to sales conversion rates, media analytics, revenue to cost KPIs, contribution margins, etc).

Ready to get started?

Ready to properly price your services ahead of the holiday rush? Grab our Smart Budget System + Holiday Pricing Bundle which includes on-demand templates and video training on pricing strategies and more. Purchase here:



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