Table of Contents
1. Introduction
Pricing factors are dynamic variables that influence the final price of a service, adding or adjusting the base cost based on specific criteria. Users can define these factors, determine how they interact with the base price (add, subtract, multiply, divide), and choose between a numerical input or a predefined list to set the adjustment mechanism
2. Configuring pricing factors
Pricing factors can be added to services during service creation or while editing a service
Name the pricing factor:
Begin by naming your pricing factor to reflect the aspect it represents (e.g., "Quality of Books", "Annual Revenue Range")
Define interaction type:
Specify how the factor should adjust pricing:
Add: Increases the base service price
Subtract: Decreases the base service price
Multiply: Applies a multiplication factor to the base price
Divide: Applies a division factor, reducing the base price
Choose Input Type:
Number Input: Directly enter a value to adjust the base price
List: If selecting 'List', input options and associated values for each, creating a structured selection
3. Examples
Quality of books:
Action: Multiply
Option | Value | Outcome |
High | 0.9 | Multiplication factor for well-maintained books, resulting in a lower charge |
Medium | 1.0 | No change |
Low | 1.1 | Resulting in a higher charge due to increased workload |
Annual revenue range:
Action: Add
Option | Value | Outcome |
Less than $100K | 0 | Add $0 for base services |
$100K-$500K | 200 | Add $200 for increased complexity |
More than $500K | 500 | add $500 for extensive service requirements |
Support factors (e.g., Hours of Support Required):
Action: Add
Option | Value | Outcome |
Basic (up to 2 hours) | 50 | Add $50 for base services |
Standard (up to 5 hours) | 120 | Add $120 for more time |
Premium (unlimited) | 250 | add $250 for premium |
Frequency of reconciliations:
Action: Multiply
Option | Value | Outcome |
Weekly | 1.2 | 1.2 multiplication factor for intensive reconciliation needs |
Monthly | 1.0 | 1.0, standard rate |
Quarterly | 0.8 | 0.8, less frequent thus a discount applied |
Loyalty discount:
Action: Subtract
Option | Value | Outcome |
Bronze (1-2 years) | 50 | Subtract $50 from the baseline service fee, offering a modest reward for early loyalty |
Silver (3-5 years) | 100 | Subtract $100, acknowledging a more extended commitment with a greater discount |
Gold (Over 5 years) | 200 | Subtract $200, providing a substantial reduction in fees to honor longstanding client relationships |
Minimum + variable fee for variants:
For example, I have a minimum fee of £35 per month for sole traders, and £155 per month for limited companies