Tax Service Price Calculator: How To Price Your Tax Service?

Tax Service Price Calculator: How To Price Your Tax Service?

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How to Determine The Price For Your Business/Service:

Our price calculator is designed to be simple and easy to use. It covers everything you need to price your tax service business

We hope this calculator helps you make more money for your business.

Please input below:

How To Price Your Tax Service

One of the most challenging aspects to starting a tax service business is determining how much to charge for your tax service.

When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.

Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.

On the other hand, when businesses over-price, this tends to be just as damaging to the business.

When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.

Here are some factors to consider when pricing your product:

Understand your customer

It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:

  • Customer demographic: Age, gender, location, etc.
  • Buying habits of your customer: What they buy + when they buy
  • Level of price sensitivity with your customer

All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.

Understand your costs

When pricing your tax service, it's critical that you first identify all of your costs and consequently mark up your tax service so you can factor in a profit.

The actual cost of your tax service may include things like:

  • The actual cost to make the product (ie. raw materials, supplies, manufacturer).
  • Shipping + overhead fees
  • Rent
  • Operating costs to run your business

You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.

Create revenue goals

When determining the price of your tax service, you'll want to create goals for revenue + how much profit you want your tax service business to make.

This process is simpler than you may think:

  1. Think about your breakeven cost (by completing the above step).
  2. Create a revenue goal based on your break-even cost
  3. Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
  4. Divide your revenue goal by the number of items you plan to sell

This figure will help determine your estimated price per product in order to meet your revenue goals.

Evaluate your competition

The last piece in determining how to price your tax service is by simply looking at your competition.

The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your tax service fits best in the marketplace.

All of these factors play an equal part in pricing your tax service, so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.

More Tips On Pricing Your Tax Service

Lauren Costanza, founder of Bluminary provides us with a detailed spreadsheet of all of her costs associated with running her business:

I knew this would be a self-funded adventure, and I set aside $3,000. During the first three months, I had a detailed spreadsheet where I tracked where the money was going and what was going toward products versus researching and developing new products.

The spreadsheets involved columns and rows of numbers to craft a budget and gain an understanding of how much would need to be invested at each stage of the process - from gathering supplies to building a website, and shipping materials.

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Lauren Costanza, on starting Bluminary ($500/month) full story ➜

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Thanks for reading. We wish you success in your business endeavors.

Examples of a successful tax service business

Savvy and Suite Ltd ($0/year)

Yvette Sadovoy from New York, New York, USA started Savvy and Suite Ltd over 3 years ago, a tax service business.

  • Revenue: $/ month
  • Founders: 1
  • Employees: 4
  • Location: New York, New York, USA

Yvette Sadovoy here, founder of Savvy and Suite, a bespoke tax and accounting firm. In reality, though, it’s so much more. Savvy and Suite is a honeypot for successful and money-minded individuals.

We tailor tax plans specifically for your business, educate on how to optimize your tax savings, advise on the best management practices, and just for fun, a resource for luxury travel itineraries and destinations. We have a passion for helping entrepreneurs thrive on and off-hours. We believe in working smart so that you can enjoy that work-life balance.

This lifestyle is possible through intelligent and diligent accounting and it is our main mission to help you live it.

how-i-started-a-7-5k-month-tailored-tax-services-business

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Yvette Sadovoy, on starting Savvy and Suite Ltd (/month) full story ➜

Pat Walls,  Founder of Starter Story

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