{"id":22708,"date":"2025-05-01T12:13:50","date_gmt":"2025-05-01T05:13:50","guid":{"rendered":"https:\/\/dps.media\/cach-dinh-gia-dich-vu-khi-ban-vua-moi-bat-dau\/"},"modified":"2025-05-01T12:13:55","modified_gmt":"2025-05-01T05:13:55","slug":"how-to-price-a-service-when-you-have-just-started","status":"publish","type":"post","link":"https:\/\/dps.media\/en\/how-to-price-a-service-when-you-have-just-started\/","title":{"rendered":"How to price your service when you are just starting out"},"content":{"rendered":"<?xml encoding=\"utf-8\" ?><p> <strong>Are you struggling to know how to price your service when just starting your business?<\/strong> 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. <em>Understanding pricing correctly and fully will help you not only survive but also sustainably grow from the early days.<\/em><\/p><p><strong>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.<\/strong> At DPS.MEDIA, after partnering with over 300 SMEs in Vietnam, we have observed that successful businesses price based on strategy, not emotion. <strong>In fact:<\/strong>.<\/p><p>83% customers are willing to pay more if they believe the value they receive matches their investment level. <em>Therefore, don't ask \"How much should I price?\" but start with \"What will customers get when choosing my service?\".<\/em>Pricing must also be linked to long-term goals.<strong>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.<\/strong> Grasping pricing principles from the start helps you control cash flow well, position your brand professionally, and build customer trust.<\/p><p><em>Above all, you won't have to ask yourself why you work so hard but still... don't make enough.<\/em> Many beginners price services based on labor hours, but in reality,<br><img decoding=\"async\" class=\"kimage_class\" src=\"https:\/\/dps.media\/wp-content\/uploads\/2025\/05\/477973.jpg\" alt=\"Correctly understanding the core value of the services you provide\" title=\"\"><\/p><h2 id=\"hieu-dung-gia-tri-cot-loi-cua-dich-vu-ban-cung-cap\">Understand the true core value of the service you provide<\/h2><h3>Core value lies not in time, but in the transformation you create<\/h3><p>the real value customers seek is the result you create, <strong>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.<\/strong>As Chris Do \u2013 founder of The Futur \u2013 once shared: \"<\/p><p>Nh\u01b0 \u200cChris Do \u2013 nh\u00e0 s\u00e1ng l\u1eadp The futur t\u1eebng\u2064 chia s\u1ebb: \u200d\u201c<em>You should not charge for the time you work, but rather charge for the entire time you have invested to become so skilled.<\/em>.\" at <a class=\"wpil_keyword_link\" href=\"https:\/\/dps.media\/en\/\" title=\"DPS.MEDIA JSC\" data-wpil-keyword-link=\"linked\" data-wpil-monitor-id=\"45\">DPS.MEDIA<\/a>, we call this the ability to \u201ccreate value in a short time\u201d \u2013 a competitive advantage in the early stage.<\/p><h3>Emotional benefits and strategic decisions determine the readiness to pay<\/h3><p>When pricing, don't just look at features or processes. Dig <strong>into emotional benefits<\/strong> (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.<\/p><p>Below is an example analysis table of building a landing page service for the first time for a new domestic cosmetics brand:<\/p><table class=\"wp-list-table widefat fixed striped table-view-list\">\n<thead>\n<tr>\n<th>Tangible value<\/th>\n<th>Emotional value<\/th>\n<th>Market strategy<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>1 SEO-standard landing page, optimized UX interface<\/td>\n<td>Confident when running ads, feeling the product is \u201cmore trustworthy\u201d<\/td>\n<td>Brand positioning as friendly &amp; professional<\/td>\n<\/tr>\n<tr>\n<td>Fast completion time within 5 days<\/td>\n<td>Reduce pressure of time to launch new products<\/td>\n<td>Significant acceleration of GTM (Go To Market)<\/td>\n<\/tr>\n<\/tbody>\n<\/table><p><strong>Suggestions from DPS.MEDIA:<\/strong><\/p><ul>\n<li>List at least 3 values that customers will receive from you \u2013 not just the output product, but the entire change it brings.<\/li>\n<li>Based on the core needs of the target customer group to adjust the value proposition \u2013 for example, small businesses care about \u201creducing management burden\u201d, \u201chaving to think a lot\u201d, not just \u201ccost optimization\u201d.<\/li>\n<\/ul><p><img decoding=\"async\" class=\"kimage_class\" src=\"https:\/\/dps.media\/wp-content\/uploads\/2025\/05\/a-gi-1.jpg\" alt=\"Strategic analysis of target market and competitors\" title=\"\"><\/p><h2 id=\"phan-tich-thi-truong-muc-tieu-va-doi-thu-canh-tranh-mot-cach-chien-luoc\">Analyze the target market and competitors strategically<\/h2><h3>Clearly understand the real needs and spending habits of your ideal customers<\/h3><p>When asked \u201cHow should service pricing be set when just starting?\u201d, most small businesses often skip the step of deep target market analysis. At DPS.MEDIA, we always encourage customers to clearly define <strong>persona<\/strong> \u2013 ideal customer profile, using information based on secondary data (from Vietnam eCommerce Map Reports, Google Consumer Barometer, or reports from Q&amp;Me). Information to be identified includes:<\/p><ul>\n<li>Industry and scale of potential customer businesses<\/li>\n<li>Estimated budget for equivalent services<\/li>\n<li>Expectations about service effectiveness and completion time<\/li>\n<\/ul><p>A practical case study: <strong>GreenNest \u2013 a startup providing green communication solutions<\/strong> 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 \u201csustainable communication solutions for startups\u201d, they adjusted prices down by 20% and utilized a monthly service package model. Within 3 months, the conversion rate increased by 56%.<\/p><h3>Conduct indirect competitor surveys to identify positioning gaps<\/h3><p>Competitor analysis is not just about price \u2013 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:<\/p><table class=\"wp-block-table is-style-stripes\">\n<thead>\n<tr>\n<th>Competitor<\/th>\n<th>Average price<\/th>\n<th>USP (unique selling point)<\/th>\n<th>Weaknesses to exploit<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Agency A<\/td>\n<td>15 million\/month<\/td>\n<td>Creative design focus<\/td>\n<td>Few accompanying services<\/td>\n<\/tr>\n<tr>\n<td>Freelancer B<\/td>\n<td>5 million\/project<\/td>\n<td>Low cost<\/td>\n<td>Not meeting the deadline<\/td>\n<\/tr>\n<tr>\n<td>You (New Business)<\/td>\n<td>9 million\/month<\/td>\n<td>Quick feedback + Good platform service<\/td>\n<td>Lack of outstanding case studies<\/td>\n<\/tr>\n<\/tbody>\n<\/table><p>Understanding this difference will help you accurately identify the \u201cvalue anchor\u201d so customers feel <strong>the price you set is reasonable in a comparative context<\/strong>.<\/p><p><img decoding=\"async\" class=\"kimage_class\" src=\"https:\/\/dps.media\/wp-content\/uploads\/2025\/05\/truong.jpg\" alt=\"Determining operating costs and minimum profit margins needed\" title=\"\"><\/p><h2 id=\"xac-dinh-chi-phi-van-hanh-va-bien-loi-nhuan-toi-thieu-can-dat\">Determine operating costs and minimum profit margins required<\/h2><h3>Calculate full operating costs and minimum cash flow<\/h3><p>Right when starting to price the service, the first thing DPS.MEDIA usually guides SME customers to do is <strong>clearly outline all actual operating costs<\/strong> \u2013 including all hidden costs that are not easy to see. Research from Harvard Business Review (2022) shows that more than <strong>63% startups fail due to pricing lower than indirect costs<\/strong>. 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.<\/p><table class=\"wp-block-table is-style-stripes\">\n<thead>\n<tr>\n<th>Cost<\/th>\n<th>Monthly calculation (VND)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Fixed personnel salary<\/td>\n<td>30.000.000<\/td>\n<\/tr>\n<tr>\n<td>Software &amp; tool costs<\/td>\n<td>3.500.000<\/td>\n<\/tr>\n<tr>\n<td>Marketing &amp; advertising<\/td>\n<td>5.000.000<\/td>\n<\/tr>\n<tr>\n<td>Depreciation of equipment, office<\/td>\n<td>2.000.000<\/td>\n<\/tr>\n<tr>\n<td>Contingency for arising expenses<\/td>\n<td>2.500.000<\/td>\n<\/tr>\n<\/tbody>\n<\/table><h3>Set smart profit margins, not simply \"making a profit\"<\/h3><p>We always emphasize that profit is not just the \u201cleftover\u201d after deducting costs. It is <strong>a tool to protect growth and maintain motivation<\/strong>. At DPS.MEDIA, we usually suggest new customers start by setting a minimum profit margin <strong>\u2013 enough to reinvest, expand scale, and withstand market cycle fluctuations.<\/strong> Below 20%<\/p><ul>\n<li><strong>: Risk of hidden losses and decline.<\/strong>20% \u2013 30%<\/li>\n<li><strong>: Temporarily stable if cost control is effective.<\/strong>Above 30%<\/li>\n<li><strong>: Start leveraging financial leverage or expanding services.<\/strong>Example in practice:<\/li>\n<\/ul><p><em>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<\/em> total operating costs + target profit margin 33% <strong>, revenue increased by 42% just after 3 months without losing any customers.<\/strong>, 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<\/p><p><img decoding=\"async\" class=\"kimage_class\" src=\"https:\/\/dps.media\/wp-content\/uploads\/2025\/05\/nter-5.jpg\" alt=\"Setting up flexible pricing structures by customer groups\" title=\"\"><\/p><h2 id=\"thiet-lap-cau-truc-gia-linh-hoat-theo-tung-nhom-khach-hang\">Design flexible pricing structures by customer segments<\/h2><h3>Segment customers and apply appropriate pricing levels<\/h3><p>At <strong>DPS.MEDIA<\/strong>. For startup customers, the <a class=\"wpil_keyword_link\" href=\"https:\/\/dps.media\/en\/seo-standard-website-design-service-leading-the-trend\/\" title=\"SEO-Standard Website Design Service \u2013 Increase Business Efficiency\" data-wpil-keyword-link=\"linked\" data-wpil-monitor-id=\"175\">basic price<\/a>can 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. <em>This tiered pricing<\/em> not only helps you<\/p><p>optimize payment capability <strong>t\u1ed1i\u200b \u01b0u h\u00f3a kh\u1ea3 n\u0103ng chi tr\u1ea3<\/strong> 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:<\/p><table class=\"wp-block-table is-style-stripes\">\n<thead>\n<tr>\n<th>Customer group<\/th>\n<th>Main needs<\/th>\n<th>Suggested price level<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Newly established startup<\/td>\n<td>Low cost, need initial support<\/td>\n<td>Savings package (1\u20133 million\/month)<\/td>\n<\/tr>\n<tr>\n<td>Medium-sized enterprise<\/td>\n<td>Want rapid growth, need flexibility<\/td>\n<td>Advanced package (5\u201310 million\/month)<\/td>\n<\/tr>\n<tr>\n<td>Large enterprise<\/td>\n<td>Long-term strategy, customized services<\/td>\n<td>Premium package (&gt;15 million\/month)<\/td>\n<\/tr>\n<\/tbody>\n<\/table><h3>Use a cumulative pricing framework based on value<\/h3><p>According to research from <em>Harvard Business Review<\/em>,<a href=\"https:\/\/vinuni.edu.vn\/vi\/3-mo-hinh-hanh-vi-nguoi-tieu-dung-pho-bien\/\" title=\"Commonly known consumer behavior models\" rel=\"nofollow noopener\" target=\"_blank\">successful pricing models usually come with deep understanding of behavior and expectations of each customer segment.<\/a>. We usually recommend the <strong>value-stacking<\/strong> \u2013 accumulating value by service level. For example, in a recent marketing consulting project at DPS.MEDIA: When providing a full package of <a class=\"wpil_keyword_link\" href=\"https:\/\/dps.media\/en\/professional-industrial-registration-service-here\/\" title=\"Professional Ministry of Industry and Trade Registration Service Here!\" data-wpil-keyword-link=\"linked\" data-wpil-monitor-id=\"260\">SEO services<\/a>, CRM and email marketing for an F&amp;B client, we designed three service levels \u2013 each expanding in value and technical support, thereby increasing the conversion rate by up to 32% in just the first 4 months.<\/p><ul>\n<li><strong>Basic:<\/strong> Minimum viable set \u2013 suitable for market testing<\/li>\n<li><strong>Intermediate:<\/strong> Multi-channel support and performance tracking<\/li>\n<li><strong>Advanced:<\/strong> Continuous optimization, in-depth reporting, enhanced behavior analysis<\/li>\n<\/ul><p>Pricing strategy should not be a rigid framework but a flexible ecosystem accurately reflecting what you bring to each specific customer.<\/p><p><img decoding=\"async\" class=\"kimage_class\" src=\"https:\/\/dps.media\/wp-content\/uploads\/2025\/05\/rocess.jpg\" alt=\"Combining experimental pricing models to test market feedback\" title=\"\"><\/p><h2 id=\"ket-hop-mo-hinh-dinh-gia-thu-nghiem-de-kiem-chung-phan-hoi-thi-truong\">Combine experimental pricing models to test market feedback<\/h2><h3>Approach starting points with A\/B pricing models or MVP<\/h3><p>On the startup journey, <strong>testing multiple pricing models<\/strong> 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 <strong>Minimum Viable Price (MVP)<\/strong> \u2013 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.<\/p><p>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 \u2013 this opened space to optimize upsell strategy right from day one.<\/p><h3>Evaluate feedback through real metrics and user experiences<\/h3><p>Make sure that price testing does not only focus on conversion rate. Research from MIT Sloan shows <strong>Post-purchase satisfaction is directly related to the perception of \u201dsuperior value\u201d<\/strong>, not necessarily the cheapest price. DPS.MEDIA suggests you also monitor indicators such as:<\/p><ul>\n<li>Customer Repeat Period<\/li>\n<li>Churn Rate<\/li>\n<li>Price Perceived Value Score<\/li>\n<\/ul><p>This is a template to help you track the pricing factors in the test rounds:<\/p><table class=\"wp-list-table widefat fixed striped\">\n<thead>\n<tr>\n<th>Trial package<\/th>\n<th>Listed price<\/th>\n<th>CTR (% ad)<\/th>\n<th>Conversion rate<\/th>\n<th>Main customer feedback<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Package A (Basic)<\/td>\n<td>1,200,000 VND<\/td>\n<td>4,2%<\/td>\n<td>8%<\/td>\n<td>Cheap but lacks expertise<\/td>\n<\/tr>\n<tr>\n<td>Package B (Integrated)<\/td>\n<td>2,300,000 VND<\/td>\n<td>3,9%<\/td>\n<td>15%<\/td>\n<td>More reasonable price than the previous period<\/td>\n<\/tr>\n<\/tbody>\n<\/table><p>Analysis from specific data like this will help you lay the foundation for <strong>a pricing strategy suitable for the actual value of the service<\/strong>, while also creating a solid stepping stone for a sustainable business model in the future.<\/p><p><img decoding=\"async\" class=\"kimage_class\" src=\"https:\/\/dps.media\/wp-content\/uploads\/2025\/05\/a-gi-3.jpg\" alt=\"Leveraging bundled service packages or promotions to increase perceived value\" title=\"\"><\/p><h2 id=\"tan-dung-cac-goi-dich-vu-tron-goi-hoac-uu-dai-de-tang-gia-tri-cam-nhan\">Leverage bundled or promotional packages to increase perceived value<\/h2><h3>Bundles help customers clearly understand value and decide faster<\/h3><p>Instead of pricing each individual service, building <strong>all-in-one service packages<\/strong> 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.<\/p><p>Below is a simple example <strong>DPS.MEDIA<\/strong> when implementing a start-up marketing package for a coffee brand:<\/p><table class=\"wp-block-table is-style-stripes\">\n<thead>\n<tr>\n<th>Package<\/th>\n<th>Price<\/th>\n<th>Components<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Basic<\/td>\n<td>5 million VND\/month<\/td>\n<td>Fanpage design, 8 posts\/month, 2 image designs<\/td>\n<\/tr>\n<tr>\n<td>Development<\/td>\n<td>9 million VND\/month<\/td>\n<td>Fanpage + Instagram, 12 posts, basic advertising<\/td>\n<\/tr>\n<tr>\n<td>Breakthrough<\/td>\n<td>15 million VND\/month<\/td>\n<td>Fanpage, Instagram, Tiktok, short videos, A\/B test ads<\/td>\n<\/tr>\n<\/tbody>\n<\/table><h3>Limited-time promotions create urgency and drive conversion<\/h3><p><strong>Limited offer<\/strong> such as \u201c150,000 VND discount for the first 3 customers\u201d is not simply a trick \u2013 this is a pricing tactic proven in many consumer behavior models. According to the book <em>Predictably Irrational<\/em> by Dan Ariely, consumers tend <em>to value something higher<\/em> when they fear missing out (FOMO effect).<\/p><ul>\n<li><strong>Increase the conversion rate of the first order<\/strong> without permanently lowering the service price.<\/li>\n<li><strong>Encourage customers to try higher packages<\/strong> when the offer creates a feeling of \u201cbargain price.\u201d<\/li>\n<\/ul><p>Typically, DPS.MEDIA has applied the promotion \u201ctry the Breakthrough package for 14 days with 0 VND\u201d 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.<\/p><p><img decoding=\"async\" class=\"kimage_class\" src=\"https:\/\/dps.media\/wp-content\/uploads\/2025\/05\/ricing.jpg\" alt=\"Update pricing strategy regularly based on data and business performance\" title=\"\"><\/p><h2 id=\"cap-nhat-chien-luoc-gia-deu-dan-dua-tren-du-lieu-va-hieu-qua-kinh-doanh\">Regularly update pricing strategies based on data and business performance<\/h2><h3>Transform business data into growth pricing strategies<\/h3><p>Based on experience from SMEs customers of <strong>DPS.MEDIA<\/strong>, one of the most common mistakes when starting to price services is \u201cpicking a random number\u201d, then not adjusting it based on actual business performance. This easily leads to the consequence: <em>if the price is too low, you do not have enough resources to expand; if too high, you lose competitive opportunities.<\/em><\/p><p>The solution is to apply a repeated pricing model according to cycles \u2013 a method emphasized by business schools like Harvard Business Review: <strong>prices need to be updated over time based on customer behavior data, market fluctuations, and profit margins.<\/strong>.<\/p><table class=\"wp-list-table widefat fixed striped\">\n<thead>\n<tr>\n<th>Tracking metrics<\/th>\n<th>Data sources<\/th>\n<th>Meaning of pricing<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Customer conversion rate<\/td>\n<td>CRM &amp; Landing Pages<\/td>\n<td>Price is too high if the sudden drop rate<\/td>\n<\/tr>\n<tr>\n<td>Cost per order (CPA)<\/td>\n<td>Facebook Ads \/ Google Ads<\/td>\n<td>Balance revenue \u2013 expense if CPA increases<\/td>\n<\/tr>\n<tr>\n<td>Customer retention time<\/td>\n<td>Google Analytics \/ App Activity<\/td>\n<td>Price needs to add value if customers leave early<\/td>\n<\/tr>\n<\/tbody>\n<\/table><h3>Case Study: F&amp;B industry client adjusting prices over time<\/h3><p>We once deployed for an online cake brand in Hanoi \u2013 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: <strong>revenue increased by 38% in one quarter without losing any existing customers.<\/strong>.<\/p><p>Adjusting prices is not a waste when you just start \u2013 it is a <strong>core strategy of flexible business thinking<\/strong>. Think like Netflix or Spotify: never price once and forever, but try \u2013 measure \u2013 continuously adjust. And you should do the same.<\/p><h2 id=\"outro\">Key takeaways<\/h2><p>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.<\/p><p>At DPS.MEDIA, we understand that for SMEs in Vietnam, pricing is always associated with many concerns: from unhealthy competition to customers\u2019 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.<\/p><p>In addition, you should also combine service pricing with overall marketing strategies, such as building brand reputation, product storytelling, and nurturing a loyal customer base. These strategies will help the price you set become more reasonable in the eyes of customers, while increasing expectations and perceived value. If you are hesitant, do not hesitate to refer to topics such as \u201cbrand positioning strategy\u201d or \u201cCustomer Lifetime Value\u201d. We look forward to hearing your thoughts: What is the biggest difficulty when pricing services at the start? What strategies have you tried and what were the results? 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