Process Serving: Charge What You Can Afford / Charge Based on Demand

For the first rule – charge what you can afford - do not set your price so low that your expenses eat up all your profit (hence you have no profit).  As with fuel costs and other expenses of running a business, if you decide to price things so low in an attempt to undercut your competitors, you may find yourself out of business, potentially in foreclosure or bankruptcy while your competitors are still running strong. 

Secondly, and this will play upon the second rule to a degree.  If you do price yourself too low, you might find yourself so busy that you cannot perform quality service, eventually leading to mistakes, missed deadlines on court appearances for your clients, and the eventual exodus of your entire book of clients.

This leads to the second rule - charge what the market demands.  If the typical going rate for service of one court document in your market is $60.00, and you charge $55.00 the price may lead to demand for your service based on the lower price.  If you get so busy because you are cheaper, there's a good change you will get over loaded with assignments and ultimately provide poor service.  Consider also that you may work yourself to an early grave.  If you keep your price competitive at $60.00 or even a little higher, however, you will gain a share of the market amongst your local competitors, considering everyone is charging the same relative price. You might even be working less if you charge $65.00, but end up making the same amount of money as your competitors or perhaps even more.  What you would rather do?  Work harder for less money per assignment or work less for the same money, be tanned and rested, and not be overloaded with too many assignments, and be able to provide superior service to your current book of clients. In turn, you will have loyal clients who tout your good name and superior performance to others who might have a need for your services.  In other words, do you want to do quantity or do you want to quality of work?  Think about it.

Have I piqued your curiosity? If so, check out my book “The Business End of Process, Running a Process Service Company From the Ground Up” available on Amazon.com. http://www.amazon.com/s/ref=nb_sb_noss?url=search-alias%3Daps&field-keywords=%22The+Business+End+of+Process%22&rh=i%3Aaps%2Ck%3A%22The+Business+End+of+Process%22&ajr=0.