Are you struggling to know how to price your service when just starting your business? This is a common problem causing many new businesses to fall into a vicious cycle: pricing too high scares customers, pricing too low fails to cover operating costs. Understanding pricing correctly and fully will help you not only survive but also sustainably grow from the early days.
The key point when pricing services is to clearly understand: the price you set not only reflects costs but also declares the value you bring. At DPS.MEDIA, after partnering with over 300 SMEs in Vietnam, we have observed that successful businesses price based on strategy, not emotion. In fact:.
83% customers are willing to pay more if they believe the value they receive matches their investment level. Therefore, don't ask "How much should I price?" but start with "What will customers get when choosing my service?".Pricing must also be linked to long-term goals.If you only aim for immediate profit, you will easily be discarded by the market due to unsustainable pricing strategies. Think bigger: today's price should be a foundation for expansion, product refinement, and customer care later. Grasping pricing principles from the start helps you control cash flow well, position your brand professionally, and build customer trust.
Above all, you won't have to ask yourself why you work so hard but still... don't make enough. Many beginners price services based on labor hours, but in reality,
Understand the true core value of the service you provide
Core value lies not in time, but in the transformation you create
the real value customers seek is the result you create, not the time you spend. Imagine you are a Google Ads expert for SMEs: if you spend only 5 hours optimizing a campaign that triples revenue, that service is worth much more than 30 hours of work that doesn't convert.As Chris Do – founder of The Futur – once shared: "
Như Chris Do – nhà sáng lập The futur từng chia sẻ: “You should not charge for the time you work, but rather charge for the entire time you have invested to become so skilled.." at DPS.MEDIA, we call this the ability to “create value in a short time” – a competitive advantage in the early stage.
Emotional benefits and strategic decisions determine the readiness to pay
When pricing, don't just look at features or processes. Dig into emotional benefits (emotional benefits) that your service brings: helping business owners feel more secure, saving decision-making time, or making users feel in control of digital channels.
Below is an example analysis table of building a landing page service for the first time for a new domestic cosmetics brand:
| Tangible value | Emotional value | Market strategy |
|---|---|---|
| 1 SEO-standard landing page, optimized UX interface | Confident when running ads, feeling the product is more “trustworthy” | Brand positioning as friendly & professional |
| Fast completion time within 5 days | Reduce pressure of time to launch new products | Significant acceleration of GTM (Go To Market) |
Suggestions from DPS.MEDIA:
- List at least 3 values that customers will receive from you – not just the output product, but the entire change it brings.
- Based on the core needs of the target customer group to adjust the value proposition – for example, small businesses care about “reducing management burden”, “having to think a lot”, not just “cost optimization”.
Analyze the target market and competitors strategically
Clearly understand the real needs and spending habits of your ideal customers
When asked “How should service pricing be set when just starting?”, most small businesses often skip the step of deep target market analysis. At DPS.MEDIA, we always encourage customers to clearly define persona – an ideal customer profile, with information based on secondary data (from Vietnam eCommerce Map Report, Google Consumer Barometer, or reports from Q&Me). The necessary information includes:
- Industry and scale of potential customer businesses
- Estimated budget for equivalent services
- Expectations about service effectiveness and completion time
A practical case study: GreenNest – a startup providing green communication solutions previously misidentified the target audience and set prices too high for the SME market. After DPS.MEDIA advised restructuring the market segmentation and positioning towards “sustainable communication solutions for startups”, they adjusted prices down by 20% and utilized a monthly service package model. Within 3 months, the conversion rate increased by 56%.
Conduct indirect competitor surveys to identify positioning gaps
Competitor analysis is not just about price – it is a strategy to identify unmet gaps. Recent research from Harvard Business Review (2022) emphasizes that 67% of SMEs in Southeast Asia price based on emotions, lacking real competitor research. DPS.MEDIA recommends using visual comparison tables to easily identify your pricing position on the competitive map:
| Competitor | Average price | USP (unique selling point) | Weaknesses to exploit |
|---|---|---|---|
| Agency A | 15 million/month | Creative design focus | Few accompanying services |
| Freelancer B | 5 million/project | Low cost | Not meeting the deadline |
| You (New Business) | 9 million/month | Quick feedback + Good platform service | Lack of outstanding case studies |
Understanding this difference will help you accurately identify the “value anchor point” to make customers feel the price you set is reasonable in a comparative context.
Determine operating costs and minimum profit margins required
Calculate full operating costs and minimum cash flow
Right when starting to price the service, the first thing DPS.MEDIA usually guides SME customers to do is clearly outline all actual operating costs – including all hidden costs that are not easy to see. Research from Harvard Business Review (2022) shows that more than 63% startups fail due to pricing lower than indirect costs. You not only need to calculate fixed costs such as office, personnel, but also need to list hidden costs such as software tools, bank fees, training, and risk contingency costs.
| Cost | Monthly calculation (VND) |
|---|---|
| Fixed personnel salary | 30.000.000 |
| Software & tools costs | 3.500.000 |
| Marketing & advertising | 5.000.000 |
| Depreciation of equipment, office | 2.000.000 |
| Contingency for arising expenses | 2.500.000 |
Set smart profit margins, not simply "making a profit"
We always emphasize that profit is not just the “leftover” after deducting costs. It is a tool to protect growth and maintain motivation. At DPS.MEDIA, we usually suggest new customers start by setting a minimum profit margin – enough to reinvest, expand scale, and withstand market cycle fluctuations. Below 20%
- : Risk of hidden losses and decline.20% – 30%
- : Temporarily stable if cost control is effective.Above 30%
- : Start leveraging financial leverage or expanding services.Example in practice:
One of our customers in the startup legal consulting network priced the service based only on billable hours, excluding post-transaction legal support costs. When restructuring the price based on total operating costs + target profit margin 33% , revenue increased by 42% just after 3 months without losing any customers., we noticed Vietnamese SMEs often miss the opportunity to expand revenue because they set a single price for all customer groups. Imagine you are a web design studio
Design flexible pricing structures by customer segments
Segment customers and apply appropriate pricing levels
At DPS.MEDIA. For startup customers, the basic pricecan be a goodwill starter to build long-term relationships. Meanwhile, for large enterprises requiring deep customization, they are willing to pay higher fees in exchange for flexibility and strategic commitment. This tiered pricing not only helps you
optimize payment capability tối ưu hóa khả năng chi trả but also clearly position the brand with each customer segment. Below is an illustration of pricing according to common customer groups that we usually implement:
| Customer group | Main needs | Suggested price level |
|---|---|---|
| Newly established startup | Low cost, need initial support | Savings package (1–3 million/month) |
| Medium-sized enterprise | Want rapid growth, need flexibility | Advanced package (5–10 million/month) |
| Large enterprise | Long-term strategy, customized services | Premium package (>15 million/month) |
Use a cumulative pricing framework based on value
According to research from Harvard Business Review,successful pricing models usually come with deep understanding of behavior and expectations of each customer segment.. We usually recommend the value-stacking – accumulating value by service level. For example, in a recent marketing consulting project at DPS.MEDIA: When providing a full package of SEO services, CRM and email marketing for an F&B customer, we designed three service levels – each level expanding with technical support value, thereby increasing the conversion rate up to 32% within the first 4 months.
- Basic: Minimum viable set – suitable for market testing
- Intermediate: Multi-channel support and performance tracking
- Advanced: Continuous optimization, in-depth reporting, enhanced behavior analysis
Pricing strategy should not be a rigid framework but a flexible ecosystem accurately reflecting what you bring to each specific customer.
Combine experimental pricing models to test market feedback
Approach starting points with A/B pricing models or MVP
On the startup journey, testing multiple pricing models is essential to understand the level of attraction and market response. With practical experience implementing for startups in Vietnam, DPS.MEDIA often advises SME customers to apply pricing strategy based on Minimum Viable Price (MVP) – that is, setting the minimum acceptable price to test purchasing power and market depth. Combined with A/B testing or customer segmentation models, you can easily identify which group is willing to pay more.
For example, a website design startup advised by DPS.MEDIA offered two different price packages for the same product: one core package, the other integrated with initial SEO support. After 3 weeks of implementation, the testing group showed 42% of customers willing to choose the higher package if they clearly understood the long-term benefits – this opened space to optimize upsell strategy right from day one.
Evaluate feedback through real metrics and user experiences
Make sure that price testing does not only focus on conversion rate. Research from MIT Sloan shows post-purchase satisfaction is directly related to the perception of “superior value”, not necessarily the cheapest price. DPS.MEDIA suggests you also monitor indicators such as:
- Customer Repeat Period
- Churn Rate
- Price Perceived Value Score
This is a template to help you track the pricing factors in the test rounds:
| Trial package | Listed price | CTR (% ad) | Conversion rate | Main customer feedback |
|---|---|---|---|---|
| Package A (Basic) | 1,200,000 VND | 4,2% | 8% | Cheap but lacks expertise |
| Package B (Integrated) | 2,300,000 VND | 3,9% | 15% | More reasonable price than the previous period |
Analysis from specific data like this will help you lay the foundation for a pricing strategy suitable for the actual value of the service, while also creating a solid stepping stone for a sustainable business model in the future.
Leverage bundled or promotional packages to increase perceived value
Bundles help customers clearly understand value and decide faster
Instead of pricing each individual service, building all-in-one service packages brings many strategic benefits for new businesses. According to research from Harvard Business Review (2022), customers tend to find it easier to make decisions and are 35% less hesitant when only facing 2-3 clear package options compared to a wide range of scattered detailed prices.
Below is a simple example DPS.MEDIA when implementing a start-up marketing package for a coffee brand:
| Package | Price | Components |
|---|---|---|
| Basic | 5 million VND/month | Fanpage design, 8 posts/month, 2 image designs |
| Development | 9 million VND/month | Fanpage + Instagram, 12 posts, basic advertising |
| Breakthrough | 15 million VND/month | Fanpage, Instagram, Tiktok, short videos, A/B test ads |
Limited-time promotions create urgency and drive conversion
Limited offer such as “150,000 VND discount for the first 3 customers” is not simply a trick – this is a pricing tactic proven in many consumer behavior models. According to the book Predictably Irrational by Dan Ariely, consumers tend to value something higher when they fear missing out (FOMO effect).
- Increase the conversion rate of the first order without permanently lowering the service price.
- Encourage customers to try higher packages when the offer creates a feeling of “bargain price.”
Typically, DPS.MEDIA has applied the promotion “try the Breakthrough package for 14 days with 0 VND” for a small chain of spas in Hanoi. Result: The registration rate increased by 72%, while 60% of customers then continued to renew the service at the original price.
Regularly update pricing strategies based on data and business performance
Transform business data into growth pricing strategies
Based on experience from SMEs customers of DPS.MEDIA, one of the most common mistakes when first starting to price services is “setting an arbitrary number,” then never adjusting according to actual business performance. This easily leads to the result: if the price is too low, you do not have enough resources to expand; if too high, you lose competitive opportunities.
The solution is to apply a repeated pricing model according to cycles – a method emphasized by business schools like Harvard Business Review: prices need to be updated over time based on customer behavior data, market fluctuations, and profit margins..
| Tracking metrics | Data sources | Meaning of pricing |
|---|---|---|
| Customer conversion rate | CRM & Landing Pages | Price is too high if the sudden drop rate |
| Cost per order (CPA) | Facebook Ads / Google Ads | Balance revenue – expense if CPA increases |
| Customer retention time | Google Analytics / App Activity | Price needs to add value if customers leave early |
Real case: F&B customers adjust prices over time
We once deployed for an online cake brand in Hanoi – initially pricing each cake at 25,000 VND, selling quite well thanks to a social proof strategy. However, after 2 months, by analyzing repeat order data and feedback rates, we proposed a slight increase to 32,000 VND along with combo packages. Result: revenue increased by 38% in one quarter without losing any existing customers..
Adjusting prices is not a waste when you just start – it is a core strategy of flexible business thinking. Think like Netflix or Spotify: never price once and forever, but try – measure – continuously adjust. And you should do the same.
Key takeaways
Service pricing is an important step in the journey of building a brand and developing a business, especially when you are still in the startup phase. Determining an appropriate price point not only helps you attract customers but also ensures sustainable quality and profit. By clearly understanding the value you bring, knowing your customer segments, and being flexible with the market, you will create a more stable business model.
At DPS.MEDIA, we understand that for SMEs in Vietnam, pricing is always associated with many concerns: from unhealthy competition to customers’ expectations of low prices. We encourage you to start with confidence in expertise and propose clear value prices, then gradually adjust to fit the target market and long-term development strategy. Remember, brand value is not only about numbers but also the experience you bring to customers.
Additionally, you should combine service pricing with overall marketing strategies, such as building brand reputation, product storytelling, and nurturing loyal customer groups. These strategies will help your prices become more reasonable in the eyes of customers, while increasing growth and perceived value. If you are hesitating, do not hesitate to refer to topics like “brand positioning strategy” or “Customer Lifetime Value.” We look forward to hearing your thoughts: What are the biggest challenges when pricing services at the start? What strategies have you tried and what were the results? Leave a comment below or join the discussion with the community so we can learn and grow together.
