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How to Set Pricing of Services as an IT Export Company

How to Set Pricing of Services as an IT Export Company
sukanya
Sukanya26 December 2023

Pricing of services right is not about undercutting the competition or chasing the lowest price. It's about understanding the value you provide, communicating it to your clients, and ensuring that the price reflects the expertise, effort, and positive impact you bring to their business.

However, in reality, is setting your service’s value this straightforward? Let’s find out.

Why is Pricing Difficult? 

According to the International Trade Administration, pricing can be the most challenging due to different market forces and pricing structures worldwide. Whether you are in IT or any other industry, finding the right price for your export services is a delicate balancing act. 

It is about achieving an equilibrium between profitability, competitiveness, and appeal to international clients while remaining attractive.

Types of Pricing Strategies for Services

There are various strategies to consider with their unique factors. 

  • The Cost-plus Method: This method determines the production cost and adds a markup to cover overheads and profits. 
  • Value-based and Comparative pricing: Value-based pricing considers the customer's perceived product or service value. Comparative pricing compares prices with competitors to establish a competitive edge.
  • Competition-based pricing strategy: Competitive or competitor-based pricing, focuses on the current market rate, or going rate, for a company's service. 
  • Geographic pricing strategy: Geographic pricing refers to varying service prices based on a specific geographical location or market.

Pricing strategies must adapt to an ever-shifting economic landscape, considering variations in purchasing power, cultural quirks, and the wild dynamics of local markets.

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