Pricing social media services can be tricky, especially when you’re balancing profitability with client expectations. This guide offers recommended pricing strategies to help you mark up MixBloom’s services and maintain healthy margins.
We’ll cover how to position your pricing based on value, not cost, and provide some sample markup ranges to guide your decisions.
1. Understanding the Value-Based Pricing Approach
When setting your prices, focus on the value your services deliver, not just the costs. Clients don’t buy social media posts—they buy time saved, increased brand visibility, and the results that come with a consistent, strategic social presence. Highlight the benefits your service offers, like expert content creation, strategic insights, and a streamlined process that simplifies social media management for them.
Tip: Position yourself as a strategic partner, not just a service provider. This allows you to command higher prices and showcase the return on investment (ROI) clients can expect.
2. Recommended Markup Ranges
Here’s a simple formula to guide your pricing:
- Cost of Service x 2-3 = Client Price
This formula ensures a healthy profit margin while keeping your services competitive. Agencies typically mark up white-label services by 100% to 300%, depending on factors like the client’s budget, perceived value, and the complexity of the services offered.
Example: If your cost for MixBloom’s services is $500/month, you might charge clients:
- Minimum: $1,000/month (2x markup)
- Standard: $1,250/month (2.5x markup)
- Premium: $1,500/month (3x markup)
These ranges allow flexibility based on the client’s needs and the value you bring. For clients who need more custom work or faster turnaround, a higher markup is justified.
3. How to Communicate the Value Behind the Price
- Focus on Outcomes, Not Outputs:
Clients don’t care about how many posts they get—they care about the impact those posts have on their business. Talk about how your services will help build their brand, generate engagement, and drive business growth. - Showcase Your Unique Value Proposition:
Whether it’s your deep industry expertise, strategic insights, or hands-on approach, highlight what sets your agency apart. This helps justify a higher markup. - Include a Detailed Service Breakdown:
Create a visually appealing, easy-to-understand service breakdown document that shows clients exactly what they’re getting for the price. Include content creation, strategy sessions, reporting, and ongoing management as part of the package.
4. Structuring Your Service Packages
Offer tiered service packages that allow clients to choose the level of support they need. This not only helps justify varying price points but also makes it easier to upsell clients to higher packages over time.
Example:
- Basic Package:
- 8 posts/month
- Graphics-only content
- Monthly performance report
- Standard Package:
- 12 posts/month
- Combination of graphics and video
- Monthly strategy session + reporting
- Competitor analysis
- Premium Package:
- 20 posts/month
- Full content mix (graphics, video, and stories)
- Weekly strategy calls + in-depth reporting
- Ad-hoc support for seasonal campaigns
Tip: Include add-ons like extra posts, expedited turnaround, or additional platforms to give clients more flexibility without complicating the core packages.
5. Handling Pricing Objections
Even with a solid pricing strategy, you might encounter clients who push back on your rates. Here’s how to handle common pricing objections:
- “Why is your price higher than other agencies?”
“We believe in delivering real value, not just content. Our team focuses on building a strategy that drives measurable results, and our pricing reflects the expertise and hands-on approach we bring to every client.” - “Can’t we just buy the content without the strategy?”
“Content without strategy is like running ads without a target audience. Our approach ensures every post serves a purpose and supports your larger business goals. That’s why we include strategy as a core part of our offering.” - “What if we only want a few posts a month?”
“We can definitely create a custom package that fits your needs. Keep in mind that social media thrives on consistency, so we usually recommend a minimum frequency to see real impact.”