When you create your listings on Zowedo it’s vital to enter the price of your service. This is the price you charge your customer but not the money you earn.
To specify how much money you will earn, you will have to take into account some variable costs and fees depending on the kind of services you provide.
Here are some key points:
- Know your expenses
- Define how much you want to earn
- Price your services taking into account all expenses and expected profit
- Align your price with the competition
A simple process to price your services
- Start by defining your total spend to deliver the service, such as transportation, classroom rental, materials provided, etc.
- Specify how much you want to earn from the service you provide. This depends on a self-assessment based on your own experience. Many factors impact this: how many hours are you working? Are you able to fill all your time slots? Do you take vacations?
- Assess your break-even point through a little calculation so you know the minimum price you should sell your services to earn your expected income.
Here are examples of variables that you may need:
- Cost: room rental, materials & ingredients provided, etc.
- Price per hour
- Working hours per week
- Maximum people per session (only for classes)
- Estimated attendance per session (only for classes) - how many people do you expect in your class on average?
- Zowedo Platform Fee
- Expected Profit
For an individual session:
Example for a 1 hour English Individual Lesson:
Take Home Fee = Price - Zowedo Platform Fee
Earnings = Price - Zowedo Platform fee - Cost of Service
If you price your service at $80 for one hour, and you spend $20 for Taxi, your earnings will be as below:
Earnings = $80 (Price) - $12 (Zowedo Platform Fee 15%) - $20 (Transportation) = $48
For a class session:
Example for a 1h Cooking Class, maximum 10 people with materials and ingredients provided:
- Cost of Service: $150 (classroom), $100 (ingredients)
- Price per person: $80
- Max pax to attend: 10
- Estimated Filling rate: 70%
- Zowedo Platform fee: 15% x Total Price
- Estimated earnings: 10 (Max attendees) x 70% (Estimated filling rate) x $80 (Price) - $42 (Zowedo platform fee 15%) - $150 (Classroom) - $100 (Ingredients) = $268
In this example, you may earn $268 from this class. To define the right price for your service, you can iterate this calculation with different price and see what will be your earnings.
How does Zowedo's Platform Fee work?
It is free to register on Zowedo and a small platform fee is charged for every successful booking to cover credit card fees, system fees, and all marketing expenses. You only pay Zowedo through the platform fee when you earn money. Our platform fee is transparent and all-inclusive.
The platform fee covers the following expenses:
- Credit card fees
- Marketing expenses such as advertisements and pay-per-click AdWords
- Loyalty program
- Customer support
- System and servers cost
Zowedo's platform can help you manage and grow your service business online by taking care of all non-essential tasks you are usually doing, such as marketing your services, payment, communication with customers, scheduling, answering inquiries and customer support.