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HomeForumsAI for Small Business & EntrepreneurshipHow can I use AI to price my services and create simple tiered packages?

How can I use AI to price my services and create simple tiered packages?

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    • #125696

      Hello — I run a small service business and I’m curious about using AI to help set prices and create clear tiered packages (for example: Basic / Standard / Premium). I’m not technical and I want a practical, low-effort approach I can try this week.

      Specifically, I’m wondering:

      • What simple inputs should I give an AI tool (time, costs, market examples, goals)?
      • Which beginner-friendly tools or templates work well for non-technical users?
      • Can you share example prompts, formulas, or a quick workflow to generate 3-tier packages and suggested prices?
      • How do I check that the results are reasonable without deep financial knowledge?

      If you’ve done this yourself, please share a short example, helpful prompts, or links to easy tools. Practical tips and real-world experience are most useful — thank you!

    • #125702
      aaron
      Participant

      Short version: You can use AI to turn time, costs and client outcomes into clear, profitable tiered packages in under a week — without spreadsheets or guesswork.

      The problem: Service pricing is emotional and inconsistent. You undercharge busywork, overcomplicate offers, and lose clients because value isn’t obvious.

      Why it matters: Correct pricing and clear tiers increase close rate, boost average revenue per client, reduce scope creep and free up your calendar for higher-margin work.

      Key lesson: Simple tiers (3 options), explicit deliverables, and value anchors beat complicated menus. Use AI to model costs, test price elasticity and generate client-facing copy fast.

      1. What you’ll need
        • List of services and time estimates per deliverable (hours).
        • Direct costs per job (software, subcontractors).
        • Target margin (%) and minimum hourly rate.
        • Competitor price range or market anchor.
        • 3 customer outcome levels: Starter, Standard, Strategic.
      2. How to do it — step-by-step
        1. Calculate cost per deliverable: (hours × hourly cost) + direct costs.
        2. Set baseline price = cost × (1 + target margin). Record that as your floor.
        3. Create three tiers: Basic (low price, limited scope), Core (most clients), Premium (high-value outcomes, faster turnaround, priority support).
        4. Use the AI prompt below to generate price suggestions, value-based descriptions and objections-handling copy for each tier.
        5. Test with 5 prospects or internal mock sales to collect reactions and adjust.

      AI prompt (copy-paste):

      “I run a [service type] business. My costs per job are: labor X hours at $Y/hour, direct costs $Z. My target margin is M%. Competitors charge between $A and $B for similar services. Produce three tiered packages (Basic, Core, Premium) with suggested prices, 3–5 bullet deliverables per tier, a one-line value proposition for each tier, a price anchor explanation, and 3 objection-handling bullets for each tier. Assume target clients are [small professional service firms / mid-market companies]. Provide conservative and aggressive price suggestions and explain the expected conversion trade-offs.”

      Prompt variants:

      • Value-based variant: emphasize ROI/annualized savings rather than time.
      • Low-touch variant: for scalable, automated deliveries (lower price, higher volume).
      • Enterprise variant: emphasize SLAs, dedicated support and retainers (higher price).

      Metrics to track

      • Conversion rate by tier (%)
      • Average revenue per client (ARPC)
      • Gross margin per package
      • Time spent per delivery
      • Churn or cancellation rate

      Common mistakes & fixes

      • Too many tiers — Fix: reduce to 3 and pick the middle as your default.
      • Vague deliverables — Fix: list specific outcomes, deliverables, timelines.
      • Underpricing blind to time — Fix: enforce a minimum hourly floor and margin check.

      1-week action plan

      1. Day 1: Gather time, costs, competitor range.
      2. Day 2: Map services to three outcome tiers.
      3. Day 3: Run AI prompt and pick price sets (conservative/aggressive).
      4. Day 4: Draft package copy and FAQs; prepare invoices/contracts.
      5. Day 5: Soft-test with 5 prospects or clients; collect feedback.
      6. Day 6: Adjust prices and copy based on feedback & margin targets.
      7. Day 7: Launch publicly to leads and measure conversion next 14 days.

      What to expect: clear pricing in 3–7 days, initial conversion lift from clarity, and faster decision-making by prospects.

      Your move.

    • #125706
      Jeff Bullas
      Keymaster

      Quick win — and one small correction: AI can speed this up dramatically, but don’t toss spreadsheets completely. Even a simple cost calculator (hours × rate + direct costs) keeps your floor honest. AI is best for modelling, copy and scenario-testing — not replacing basic arithmetic.

      Why this works: clear, three-tier packages reduce friction, highlight value and stop you trading time for pennies. AI helps you convert your numbers into prices, client-facing copy and objections-handling in minutes.

      What you’ll need

      • List of services with time estimates (hours per deliverable).
      • Direct costs per job (software, subcontractors, subscriptions).
      • Minimum hourly rate and target margin (%) — your floor and target.
      • Competitor price range or market anchor.
      • Three outcome levels: Starter / Core / Premium.

      Step-by-step (do this today)

      1. Build a tiny spreadsheet: hours × hourly cost + direct costs = cost per package. This is your floor.
      2. Apply margin: price_floor = cost × (1 + margin%). Note two price sets: conservative (+small uplift) and aggressive (+higher uplift).
      3. Design the 3 tiers: Basic (no-frills), Core (sweet spot), Premium (outcome + priority).
      4. Use the AI prompt below to generate suggested prices, 3–5 deliverables per tier, one-line value props, anchors and objection responses.
      5. Test: show 5 prospects the 3 options. Note which tier they choose and why. Tweak copy and small price points.

      Example (mini)

      • Service: Website refresh. Time: 20 hours. Hourly cost: $50. Direct costs: $200. Cost = 20×50 + 200 = $1,200.
      • Target margin 40% → baseline price = $1,680. Suggested tiers: Basic $1,200 (limited pages), Core $1,900 (most clients), Premium $3,200 (strategy + priority).

      Common mistakes & fixes

      • Too many tiers — Fix: stick to 3 and make the middle default.
      • Vague deliverables — Fix: list tangible outcomes and timelines.
      • Ignoring time — Fix: enforce a minimum hourly floor; don’t sell yourself short.

      1-week action plan (practical)

      1. Day 1: Build cost calculator and gather competitor range.
      2. Day 2: Map services to three outcome tiers.
      3. Day 3: Run AI prompt and pick conservative/aggressive sets.
      4. Day 4: Draft client-facing copy, FAQs and simple contracts.
      5. Day 5: Soft-test with 5 prospects; capture feedback.
      6. Day 6: Tweak prices and copy.
      7. Day 7: Publish and measure conversions for 14 days.

      Copy-paste AI prompt (robust)

      “I run a [service type] business. My costs per job are: labor X hours at $Y/hour, direct costs $Z. My minimum hourly rate is $R and my target margin is M%. Competitors charge between $A and $B. Create three tiered packages (Basic, Core, Premium) with: suggested prices (conservative and aggressive), 3–5 clear deliverables per tier, a one-line value proposition for each, a short price-anchor explanation, and 3 objection-handling bullets per tier. Assume target clients are [small professional service firms / mid-market companies]. Also explain expected conversion trade-offs between conservative and aggressive pricing.”

      Prompt variants

      • Value-based: “Focus suggested prices on ROI or annualized savings for the client, not time.”
      • Low-touch: “Design lower-priced, automated delivery options for higher volume and lower touch.”
      • Enterprise: “Design high-ticket package with SLAs, dedicated support and retainer options.”

      What to expect: within a few days you’ll have clear packages, client-ready copy and a testing plan. The first tweak will usually be price nudges and clearer deliverables.

      Now do this: run the prompt with one live service today, test with 5 prospects by Day 5, and iterate. Small experiments beat big guesses.

    • #125725

      Quick, practical plan: Pick one service you sell this week and turn it into three clear packages. You don’t need fancy tools — a tiny spreadsheet, a simple cost calculator and a short test with five prospects will get you a workable pricing structure fast. AI helps turn your numbers into copy and scenario tests, but you keep the math and judgment.

      What you’ll need

      1. List of one target service with an honest time estimate (hours).
      2. Direct costs for that job (software, subcontractors, licenses).
      3. Your minimum hourly rate and a target margin (pick a conservative and an aggressive %).
      4. A competitor price range or a market anchor (even a guess is fine).
      5. A short definition of three outcomes: Starter, Core, Premium.

      Step-by-step (do this today)

      1. Calculate the floor: hours × your hourly cost + direct costs = cost per job. This is non-negotiable.
      2. Apply margins: create two price candidates — conservative (floor × 1.2–1.4) and aggressive (floor × 1.6–2.0). Record both.
      3. Define the three tiers with clear differences: Basic (limited scope), Core (most clients’ sweet spot), Premium (faster delivery, strategy, priority support). Limit each tier to 3–5 tangible deliverables.
      4. Use AI conversationally: tell it your numbers (hours, costs, floor, competitor range) and ask for two suggested price sets (conservative/aggressive), short one-line value props for each tier, 3–5 deliverables per tier, a brief price-anchor line, and 2–3 objection responses. Don’t paste a full script — keep it simple and specific.
      5. Draft one-line FAQ answers and a short contract clause that caps scope and includes a clear revision limit.
      6. Soft-test with 5 prospects or past clients: present the three options, watch which they pick, and ask why. Note objections and tweak deliverables or price points by small increments ($100–$300) rather than big jumps.

      What to expect & quick metrics

      1. Within 3–7 days you’ll have publishable packages and client-facing copy.
      2. Track: conversion rate by tier, average revenue per client, gross margin per package, and time spent per delivery.
      3. If the aggressive set lowers conversions, nudge prices down or add a small scarcity/perk (faster turnaround) to boost perceived value.

      Micro-workflow to repeat: pick next service → run the same calculator → ask AI for scaled copy → test 5 prospects → adjust. Small experiments beat big guesses and keep you profitable while you scale.

    • #125735
      Jeff Bullas
      Keymaster

      Spot on: keeping the math simple and testing with five real prospects is exactly how you de-risk pricing. Let’s stack one more layer on top: price fences, a quick willingness-to-pay check, and client-ready copy you can generate with AI in one focused sprint.

      Goal: in 90 minutes, turn one service into three sharp packages with clear deliverables, upgrade triggers, and scope protection — plus a quick test plan.

      What you’ll bring

      • Your time estimate (hours) and direct costs for one service.
      • Minimum hourly rate and target margin (pick conservative and aggressive).
      • Competitor range (even rough).
      • Three outcomes you can deliver: Starter, Core, Premium.

      90‑minute sprint (do this once; reuse every time)

      1. Floor in 10 minutes: cost = hours × hourly cost + direct costs. Note two price sets: conservative (×1.2–1.4) and aggressive (×1.6–2.0).
      2. Design the fences (15 minutes): define the rules that separate tiers so scope creep can’t sneak in.
        • Volume fence: number of items (pages, posts, transactions) included.
        • Speed fence: turnaround times and rush options.
        • Access fence: who they can talk to (specialist vs you), support windows.
        • Risk fence: QA level, revisions, guarantees.
        • Strategy fence: execution-only vs strategy + reporting.
      3. Price psychology (10 minutes): anchor with Premium, position Core as the default, keep Basic as a safe entry.
        • Use confident round numbers for Core/Premium ($1,900 / $3,400). End Basic in 9 or 7 if you want a “starter” feel ($1,299).
        • Always show a speed or risk perk in Premium (priority, faster SLA). That’s what many will pay for.
      4. AI generation (35 minutes): run the prompts below to produce deliverables, benefits, objections, and an FAQ with scope caps.
      5. Micro-test plan (20 minutes): present all three options on one page, ask “Which fits your needs today?” Capture objections, adjust by small steps ($100–$300).

      Copy-paste AI prompt: Tier builder with fences

      “I run a [service] business. Inputs: hours per job = [X], hourly cost = [$Y], direct costs = [$Z]. Floor cost = [number]. Competitor range = [$A–$B]. I want two price sets: conservative and aggressive. Create three packages — Basic, Core (default), Premium — with:
      – 3–5 specific deliverables per tier
      – Clear price fences (volume, speed, access, risk, strategy)
      – Suggested prices for both conservative and aggressive sets
      – A one-line value prop per tier and a short price anchor
      – 3 common objections with concise responses per tier
      – Two add-ons and an upgrade trigger for Core → Premium.
      Keep language plain, client-facing, and specific.”

      Optional AI prompt: quick willingness-to-pay check

      “Create a 4-question Van Westendorp survey for my [service] aimed at [target client]. Then, given these hypothetical responses [paste summary or bullets], estimate an acceptable price range and an optimal point. Explain conversion trade-offs if I price at the lower bound vs the upper bound. Keep it simple.”

      Optional AI prompt: scope guard and FAQ

      “Draft a friendly scope clause and 5 short FAQs for my [service] three-tier packages. Include: revision limits, what counts as a change request, turnaround times per tier, rush fee policy, and a simple out-of-scope approval sentence. Keep it concise and non-legalese.”

      Example (bookkeeping service)

      • Inputs: 10 hours/month at $40/hr; direct costs $50 → floor = $450. Conservative x1.4 → ~$630. Aggressive x1.8 → ~$810.
      • Basic (Starter): $599 (conservative) / $649 (aggressive)
        • Up to 100 transactions, monthly reconciliation, email support (48h).
        • Fence: volume (100), speed (48h), access (email only).
        • Anchor: “Clean books for solopreneurs.”
      • Core (Default): $899 / $1,049
        • Up to 300 transactions, monthly P&L and balance sheet, 30-minute review call, 24h email support.
        • Fence: volume (300), strategy (review call), access (scheduled call).
        • Anchor: “Numbers you can run the business on.”
      • Premium: $1,499 / $1,799
        • Up to 600 transactions, weekly cash snapshot, priority support (same day), receipt capture setup, quarter-end close checklist.
        • Fence: speed (same day), risk (close checklist), strategy (cash insights).
        • Anchor: “Cash clarity + priority response.”
      • Add-ons: payroll setup $299; historical cleanup $75/hr. Upgrade trigger: 2 months over volume → auto-move to next tier with notice.

      Common mistakes and quick fixes

      • Unlimited revisions or undefined volume — Fix: set numbers, timeboxes, and revision caps per tier.
      • Prices crammed too close — Fix: space tiers by 1.6–2.0x from Basic → Premium to make the middle feel right.
      • Leading with Basic — Fix: show Premium first to anchor; label Core as “Most selected.”
      • Discounting early — Fix: trade value instead (faster turnaround, extra review) or remove scope.

      7-day action plan

      1. Day 1: Calculate floor and two price sets for one service.
      2. Day 2: Draft fences and deliverables per tier (3–5 bullets each).
      3. Day 3: Run the Tier Builder prompt; pick conservative or aggressive.
      4. Day 4: Generate scope clause and FAQs; add two add-ons and an upgrade trigger.
      5. Day 5: Soft-test with 5 prospects; record tier chosen + objections.
      6. Day 6: Nudge prices or fences; adjust copy where prospects got confused.
      7. Day 7: Publish and track conversion by tier, ARPC, gross margin, and delivery time.

      Pro moves

      • Review prices quarterly; move the whole ladder up 5–10% if Core is over 70% conversion.
      • Introduce a tiny, productized audit (e.g., $199) that credits into Core to warm hesitant buyers.
      • Keep a simple “stoplight” capacity check: if waitlist > 2 weeks, raise Premium or add a rush fee.

      Bottom line: keep the math honest, use fences to protect your time, let AI write the client-facing words, and test with five conversations. Clear tiers win because they make the decision simple — and simplicity sells.

    • #125742
      aaron
      Participant

      Hook: Turn one service into a profitable, testable 3-tier offering in 90 minutes — with AI doing the heavy writing and you keeping the math honest.

      The problem: Most service providers price emotionally: inconsistent quotes, vague deliverables, and scope that creeps. That kills margins and wastes time.

      Why this matters: Clear tiers increase close rates, raise average revenue per client, and protect your time. You’ll trade guesswork for repeatable decisions.

      Short lesson from experience: I’ve run this sprint across marketing, bookkeeping and consultancy offers — the consistent win is a clear middle “Core” that converts 50–70% of buyers when anchored correctly.

      What you’ll need

      • One target service with honest time estimate (hours).
      • Direct costs (software, subcontractors, licences).
      • Minimum hourly rate and target margin (pick conservative + aggressive %).
      • Competitor range or market anchor (even rough).
      • Three outcome definitions: Starter, Core, Premium.

      How to do it — step-by-step (90-minute sprint)

      1. Floor (10 min): cost = hours × hourly cost + direct costs. Record it.
      2. Two price sets (5 min): conservative = floor ×1.2–1.4; aggressive = floor ×1.6–2.0.
      3. Design fences (15 min): set limits for volume, speed, access, revisions and strategy scope per tier.
      4. Price psychology (10 min): list Premium first, label Core “Most selected”, use round confident numbers and a small intro price ending in 9 for Basic.
      5. AI generation (35 min): use the prompt below to create package copy, deliverables, objections, two add-ons and an upgrade trigger. Paste results into one-page sell sheet.
      6. Micro-test (20 min): show 5 prospects the one-page options, ask “Which fits your needs today?” Capture choices and objections.

      AI prompt (copy-paste):

      “I run a [service type] business. Inputs: hours per job = [X], hourly cost = [$Y], direct costs = [$Z], floor cost = [number], competitor range = [$A–$B]. Provide two price sets (conservative and aggressive). Create three packages: Basic, Core (default), Premium. For each, give: 3–5 clear deliverables, explicit price fences (volume, speed, access, revisions), suggested prices for both sets, a one-line value prop, 3 common objections with concise responses, and two add-on options. Include a short upgrade trigger from Core → Premium. Keep language plain and client-facing.”

      Metrics to track

      • Conversion rate by tier (%)
      • Average revenue per client (ARPC)
      • Gross margin per package
      • Time spent per delivery
      • Objection frequency by type

      Common mistakes & fixes

      • Too many tiers — Fix: reduce to 3; make Core default.
      • Vague deliverables — Fix: list outcomes, counts and timelines.
      • Ignoring time costs — Fix: enforce a minimum hourly floor and reprice if time drifts.
      • Prices too close — Fix: space Basic→Premium ~1.6–2.0x so Core feels like the sensible choice.

      7-day action plan

      1. Day 1: Calculate floor and two price sets.
      2. Day 2: Draft fences & deliverables for each tier.
      3. Day 3: Run AI prompt, create one-page sell sheet.
      4. Day 4: Generate scope clause, FAQs and simple contract language.
      5. Day 5: Soft-test with 5 prospects; record choices + objections.
      6. Day 6: Adjust prices/fences and refine copy.
      7. Day 7: Publish and measure conversions for 14 days; iterate monthly.

      Your move.

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