Module 2: Pricing That Wins
Course: Launch Fast — Local Services
Duration: ~40 minutes
Lessons: 6
Outcome: You have a competitive 3-tier pricing menu, understand your margins, and know how to upsell.
Lesson 2.1: The Pricing Formula
Format: 📖 Reading | Duration: 10 min
Hook
Most new service business owners pick a price by guessing. Then they wonder why they're working 50 hours a week and barely breaking even.
Concept
The Simple Pricing Formula:
Your Price = (Your Costs + Your Time Value) × Market Multiplier
Let's break each piece down.
1. Your Costs (per job)
Everything it costs you to complete one job:
- Supplies and materials (cleaning products, fuel, parts)
- Equipment wear (depreciation: divide total cost by expected jobs)
- Drive time and fuel to get to the job
- Insurance (divide annual cost by expected annual jobs)
- Software and subscriptions (monthly tools divided by monthly jobs)
Example for a cleaning job:
| Cost | Amount |
|---|
| Cleaning supplies | $5 |
| Fuel (round trip) | $8 |
| Insurance (per job) | $4 |
| Equipment wear | $2 |
| Total cost per job | $19 |
If you want to earn $60,000/year and work 40 hours/week for 50 weeks, that's $30/hour. If a cleaning job takes 3 hours (including drive time), your time cost is $90.
3. Market Multiplier
This is the markup that turns a cost into a competitive price. For local services, the market multiplier is typically 1.5x to 2.5x your costs.
Putting it together:
- Cost per job: $19
- Time value: $90 (3 hours × $30/hour)
- Subtotal: $109
- Market multiplier: 1.5x
- Your price: $164
Check this against competitors. If competitors charge $150-$200, you're in the right range. If they charge $100, either your market is low-cost or you need to differentiate on quality/reliability.
The Bottom Line Test
After every job, ask: "Did I earn at least $40/hour after all expenses?" If yes, your pricing works. If no, raise your prices or reduce your time per job.
Bizzby in Action
Tell Alex your business type and costs. Riley will build a pricing model showing your break-even point, target hourly rate, and recommended pricing at different volume levels.
Example
Deshawn runs a pressure washing business. His pricing calculation:
- Supplies per job (detergent, fuel for washer): $12
- Fuel to drive to job: $10
- Insurance per job: $5
- Equipment wear: $8
- Time: 2 hours at $40/hour target = $80
- Subtotal: $115
- Market multiplier: 2x (pressure washing commands premium pricing)
- Price: $230 for a driveway
Competitors charge $180-$300. His price is right in the middle, which lets him win on responsiveness and reviews rather than being the cheapest.
Quiz
- What should you include in your "cost per job"?
- a) Just supplies
- b) Supplies, fuel, insurance, and equipment wear ✓
- c) Only what you pay upfront
- d) Just your time
Action Item
Calculate your cost per job and target hourly rate. Use the formula above. Write down your preliminary price.
Lesson 2.2: Package vs. Per-Job Pricing
Format: 📖 Reading | Duration: 8 min
Hook
How you structure your pricing matters as much as the number itself. The right structure makes clients buy more and stay longer.
Concept
Per-Job Pricing: You charge a fixed price for each service visit.
- Best for: one-time services (junk removal, deep cleaning, pressure washing)
- Pro: Simple, easy to quote
- Con: Unpredictable revenue, always hustling for the next job
Package/Recurring Pricing: Clients pay a fixed weekly or monthly rate.
- Best for: ongoing services (lawn care, regular cleaning, pool maintenance)
- Pro: Predictable revenue, clients stay for months/years
- Con: Slightly lower per-visit rate
The Right Answer: Offer Both
Create a pricing menu with:
- One-time services at full price
- Recurring packages at a 10-15% discount (the discount buys you predictable revenue)
Pricing Menu Examples
Residential Cleaning:
| Service | One-Time | Weekly | Bi-Weekly |
|---|
| Standard Clean (2BR) | $140 | $120/visit | $130/visit |
| Standard Clean (3BR) | $180 | $155/visit | $165/visit |
| Deep Clean (any size) | $250-$400 | N/A | N/A |
| Service | One-Time | Weekly | Bi-Weekly |
|---|
| Mow + Edge + Blow | $50-$80 | $40-$65/visit | $45-$70/visit |
| Mow + Trim + Edge + Blow | $75-$120 | $65-$100/visit | $70-$110/visit |
| Full service + fertilize | $150-$250 | $120-$200/visit | N/A |
| Package | Sedan | SUV/Truck |
|---|
| Exterior Wash | $40-$60 | $50-$75 |
| Interior Detail | $80-$120 | $100-$150 |
| Full Detail | $150-$200 | $180-$250 |
| Monthly Maintenance | $120/mo | $150/mo |
Bizzby in Action
Maya researches local pricing for your exact service in your area and builds a 3-tier pricing menu. Riley validates the margins. Alex presents the recommendation for your approval.
Quiz
- Why offer a small discount for recurring service?
- a) Clients demand it
- b) The predictable revenue and client retention is worth more than the discount ✓
- c) You have to
- d) It doesn't matter
Action Item
Draft your 3-tier pricing menu (basic, standard, premium) for both one-time and recurring service. Share it with Alex for feedback.
Lesson 2.3: Competitive Research in 20 Minutes
Format: 🎬 Video | Duration: 12 min
Video Description
Screen recording showing how to research competitor pricing in under 20 minutes using Google, Thumbtack, Yelp, and calling competitors directly.
Script Outline
- Google "service near me" (4 min): Check the top 10 results. Note their pricing if listed. Look at their Google reviews.
- Thumbtack/Angi (4 min): Create a project request. See what providers quote. Note the price range.
- Yelp (2 min): Check top-rated providers. Read reviews for pricing clues.
- Call 3 competitors (4 min): Call and ask for a quote as a potential customer. Note their price, how they answer the phone, and their professionalism.
- Build your pricing position (3 min): Where do you want to sit? Budget, mid-range, or premium? Mid-range with better service is usually the sweet spot for new businesses.
Supporting Text
The 20-Minute Research Checklist:
- Google "[your service] [your city]" and note the top 5 competitors' prices
- Check Thumbtack or Angi for quote ranges in your area
- Call 2-3 competitors and request a quote (be a mystery shopper)
- Record everything in a simple spreadsheet
What you're looking for:
- The price range (low to high)
- The average price
- What's included at each price point
- How competitors present their pricing (flat rate, hourly, per square foot)
Where to position yourself:
- Budget (10-20% below average): Only if you're competing on volume. Hard to sustain.
- Mid-range (average): Compete on reliability, reviews, and speed. Best for most new businesses.
- Premium (15-30% above average): Compete on quality, professionalism, and niche expertise. Requires strong reviews/portfolio.
Action Item
Spend 20 minutes researching competitors in your area. Note the low, average, and high prices. Decide where you want to position yourself.
Lesson 2.4: Pricing Calculator Spreadsheet
Format: 📋 Template | Duration: 5 min
Template
YOUR PRICING CALCULATOR
Step 1: Your Costs Per Job
| Expense | Cost |
|---|
| Supplies/materials | $____ |
| Fuel (round trip) | $____ |
| Insurance (annual ÷ estimated annual jobs) | $____ |
| Equipment depreciation (total gear ÷ expected lifetime jobs) | $____ |
| Other costs | $____ |
| Total Cost Per Job | $____ |
| Amount |
|---|
| Target annual income | $____ |
| Working hours per week | ____ |
| Working weeks per year | ____ |
| Your hourly rate (income ÷ hours ÷ weeks) | $____/hr |
| Average hours per job (including drive time) | ____ hrs |
| Time cost per job | $____ |
| Amount |
|---|
| Cost per job | $____ |
| Time cost per job | $____ |
| Subtotal | $____ |
| Market multiplier (1.5x-2.5x) | ____x |
| Your price per job | $____ |
| Competitor average in your area | $____ |
| Your effective hourly rate (price - costs) ÷ hours | $____/hr |
| Scenario | Jobs/Week | Revenue/Week | Revenue/Month |
|---|
| Part-time (starting) | ____ | $____ | $____ |
| Full-time | ____ | $____ | $____ |
| With helper | ____ | $____ | $____ |
Action Item
Fill out this calculator. If your effective hourly rate is below $35, consider raising your price or reducing your time per job.
Lesson 2.5: Upsells and Add-Ons
Format: 📖 Reading | Duration: 5 min
Hook
The easiest revenue increase doesn't come from getting new clients. It comes from selling more to the clients you already have.
Concept
Upsells are additional services you offer at the point of booking or after completing a job. They're easy to sell because the client already trusts you and you're already there.
High-Converting Upsells by Service Type:
| Service | Upsell | Price | Why It Works |
|---|
| Cleaning | Inside fridge | $30-$50 | They see you cleaning and think "while you're here..." |
| Cleaning | Inside oven | $30-$50 | Same logic |
| Cleaning | Laundry (wash/fold) | $20-$40 | Convenience |
| Pressure washing | Gutter cleaning | $75-$150 | Already have the ladder out |
| Pressure washing | House washing | $200-$400 | Natural extension |
| Lawn care | Hedge trimming | $50-$100 | Already on the property |
| Lawn care | Mulching | $100-$300 | Seasonal upsell |
| Detailing | Ceramic coating | $200-$500 | Premium add-on |
| Detailing | Headlight restoration | $50-$80 | Quick add-on |
| Junk removal | Light demolition | $100-$300 | Already have the truck |
| Dog walking | Pet sitting | $50-$100/night | Relationship already built |
- At booking: "Would you like us to include [upsell] while we're there? It's just $[price] extra."
- On-site: "I noticed your [thing]. We can take care of that today for $[price] if you'd like."
- After service: "Many of our clients also add [upsell] monthly. Want me to include it next time?"
The Math:
If you add an average of $40 in upsells to 50% of your jobs, and you do 15 jobs per week, that's an extra $300/week or $15,600/year in additional revenue for work you were already doing.
Bizzby in Action
Maya will identify the top upsell opportunities for your specific service and market. Kai will add upsell prompts to your booking flow and follow-up sequences.
Action Item
List 3-5 upsells you could offer alongside your main service. Add them to your pricing menu.
Lesson 2.6: Create Your 3-Tier Service Menu
Format: 🎯 Action | Duration: 20 min
Hook
Time to put it all together. You're going to create the pricing menu you'll use with your first clients.
What to Do
Create a 3-tier service menu with:
Basic: The entry-level service. Gets clients in the door. Solid value.
Standard: Your recommended service. Best balance of value and revenue. (This is where most clients should land.)
Premium: The full treatment. Higher price, higher margin, includes everything.
Template
[YOUR BUSINESS NAME] — Service Menu
| Basic | Standard ⭐ | Premium |
|---|
| Service name | [Name] | [Name] | [Name] |
| Includes | [List items] | [List items] | [List items] |
| Price | $[price] | $[price] | $[price] |
| Recurring discount | [%] off | [%] off | [%] off |
- [Upsell 1]: $[price]
- [Upsell 2]: $[price]
- [Upsell 3]: $[price]
Pricing Psychology Tips
- Anchor high: List Premium first so Standard looks like a deal
- Star the middle: Mark Standard as "Most Popular" or "Recommended"
- Round numbers: $150, not $147.99. You're not Walmart.
- No per-hour pricing: Clients hate watching the clock. Flat rates feel fair.
Action Item
Complete your 3-tier service menu and send it to Alex. Maya will review it against competitors and suggest adjustments. Riley will validate your margins.
Module 2 Quiz
4 questions
- What's the pricing formula?
- a) Whatever competitors charge
- b) (Costs + Time Value) × Market Multiplier ✓
- c) Double your costs
- d) The highest price possible
- Why offer a recurring service discount?
- a) Clients demand it
- b) Predictable revenue is worth more than the discount ✓
- c) You have to
- d) To be the cheapest
- What's the best pricing tier to recommend to most clients?
- a) Basic
- b) Standard (middle tier) ✓
- c) Premium
- d) The cheapest one
- What's the easiest way to increase revenue per client?
- a) Raise prices dramatically
- b) Add upsells and add-on services ✓
- c) Work more hours
- d) Find new clients
Module 2 Agent Prompt
"Maya, please research typical pricing for [service] in [city] and create a 3-tier service menu (basic/standard/premium) with suggested prices for my business."