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Pricing Models for Small Business

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soren4

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Rejestracja: 08 lis 2014, 11:16

My small consulting practice is considering a booking system but I'm confused about pricing models. Some services charge per booking, others charge monthly subscriptions, some have commission on payments. What makes the most financial sense for a small business like mine? I might get ten to twenty bookings per week. Should I look for something with lower monthly fees even if commission is higher, or vice versa?


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Wiadomość # 1 24.12.25 - 13:52:54
RE: Pricing Models for Small Business

lifeinsurance

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Cytat:
My small consulting practice is considering a booking system but I'm confused about pricing models. Some services charge per booking, others charge monthly subscriptions, some have commission on payments. What makes the most financial sense for a small business like mine? I might get ten to twenty bookings per week. Should I look for something with lower monthly fees even if commission is higher, or vice versa?
For your volume of ten to twenty bookings weekly, I'd honestly go with a fixed monthly subscription model rather than commission-based. Let me break down why: with ten weekly bookings, that's roughly forty to eighty per month. If you're paying twenty percent commission on, say, fifty dollar consultations, that's four hundred to eighty dollars per month just in fees. Most flat-rate services designed for small businesses start around twenty to thirty dollars monthly. The math becomes obvious pretty quickly. Plus, flat-rate models incentivize the platform to help you succeed because they're not taking a cut of your revenue. You actually want your clients to book more. Commission models sometimes encourage the platform to upsell you additional features. I switched three years ago and haven't looked back. Calculate your average booking value and annual transaction volume first, then compare actual costs across different models.


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Wiadomość # 2 24.12.25 - 14:22:02
RE: Pricing Models for Small Business

shanko

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Rejestracja: 14 paź 2013, 20:43

I run a coaching business with similar booking volume to what you're describing, so I understand the financial considerations well. Pricing structures can definitely make a difference when you're just starting out. What works best really depends on your growth projections and whether you value predictability in expenses. I personally prefer the subscription model because my business expenses are more predictable month to month, which makes accounting easier. With commission-based systems, some months could be significantly higher if I have a good month for bookings, which creates budgeting headaches. I integrated Online booking service for clients into my workflow and their straightforward monthly pricing meant I could forecast expenses accurately. No hidden fees, no surprise charges. The service includes client reminders, payment processing, and calendar synchronization, so I'm not having to pay separately for those features. For small practices like ours, simplicity in pricing actually matters more than saving a few dollars monthly.


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Wiadomość # 3 24.12.25 - 15:13:00
RE: Pricing Models for Small Business
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