Pricing Strategies: #1 Nuances in Pricing

When Clara first opened her digital printing shop, pricing was simple. She sold handmade greeting cards, planners, business cards, and other physical items at fixed label prices, individually and in bulk. One SKU, one price, one bill, and that's all it took.

But as business grew, people started using digital signage and boards, and customers wanted more than just a one-time product from Clara. They needed event invites designed, corporate gift packages, annual print subscriptions, and even on-demand branding services for special occasions.

Suddenly, pricing wasn't simple anymore.

A business card might cost $2, but designing a wedding card set is a one-time creative service. Corporate print delivery repeats monthly, with many customisations. Branding projects take multiple stages before they're finalised. For Bulk orders, it requires a tiered or usage-based pricing slab. Clara had transformed into a mixed-model business that offers products, services, and subscriptions based on vendors and projects.

Clara realised that the pricing is no longer just numbers but a strategy to be well-crafted and executed.

Challenge with Evolving Business Models 

Most businesses eventually reach a point like Clara.

• They sell physical/commercial goods at fixed pricing.

• They offer one-time services with one-time service pricing.

• They move to subscription revenue, where it is recurring or usage-based pricing.

• They handle custom work under milestone or project-based pricing.

​Every model has its own billing rhythm, revenue pattern, taxation logic, discount rules, and contract structure. And managing each manually in a spreadsheet or with individual tools for each invoicing model will be nothing but chaotic.

​
You need to be flexible with structure. You need a system that lets your pricing evolve without friction.

Zoho Billing is built for businesses that change, grow, experiment, and scale without burning time restructuring pricing.

Product/Physical Goods Pricing

For businesses that sell tangible items, pricing needs to be predefined and easily accessible at the point of sale. In Zoho Billing, you can configure each product as an item with its rate, unit, and tax preference, making invoicing a two-click process. Whether someone buys one note or 200, you don't need to remember pricing manually it;s already available and accurate. The convenience lies in setting it up once and using it multiple times across different invoices.

Tips: Turn pricing into a system that instantly recalls. The faster the invoice is generated, the faster the payment flows. Predefined product pricing reduces negotiation time, improves customer confidence, and supports sales growth without operational hiccups.

One-Time Service Pricing

When your service is delivered once, for instance, design work, installation, gardening, etc, you need a smooth way to charge for it without building a new billing structure every time. With Zoho Billing, one-time services can be created as items with fixed or variable billing units, making invoicing as simple as adding the service line. Instead of calculating cost per job repeatedly, pricing becomes standardised, repeatable and instant. You deliver value once, and billing follows instantly with clarity.

Tips: Productise service. When pricing is packaged, it becomes easier to pitch, scale and repeat. Billing isn't an afterthought; it becomes a part of your service proposition itself.

Subscription Ongoing Services Pricing

As a business scales, recurring revenue often becomes a significant source of income—through monthly retainers, annual supply contracts, maintenance services, SaaS offerings, etc. Zoho Billing allows you to convert services into subscription plans with predefined billing cycles, renewal trial options, and add-ons. Once configured, the system automates invoicing at scheduled intervals. All you need to do is define pricing once, and Zoho Billing bills on your behalf.

Tips: Build predictability. A subscription model isn't just about charging periodically. It's about removing effort from revenue collection. Once pricing is defined, the system manages recurring invoices while your focus shifts to delivery, retention, and scaling.

Project Pricing

Projects are dynamic, and the pricing varies based on time, milestones, and additional expenses. Zoho Billing helps manage these complexities by letting you bill based on hours worked, tasks completed, or pre-agreed stages. You can even link costs and convert them directly into a claimable invoice item. Instead of manually tracking across documents, everything feeds into one billing workflow. Project process, expense add-up, and invoice are reflected transparently, with pricing already defined and ready to deploy.

Tips: Balance freedom with financial clarity. When pricing models adapt to project scope without backtracking into manual recalculation, you win two battles at once: delivery agility and revenue accuracy. Every hour, every task, and every expense converts into billable value without delay or data loss.

What Pricing Flexibility Offers to Businesses 

Business growth introduces multiple revenue models, but with Zoho Billing, each can be priced, pre-configured, and billed effortlessly. Whether you're selling goods, delivering services, managing subscription contracts, or long-term projects, pricing remains consistent, organised, and, on top of it all, completely scalable.

As a business, pricing is not just what you charge; it's how effectively and smoothly you present it to the customer. 

Up Next: Plan your service offering with Plans. 

• Topic Participants

• Hari Hara Sudhan. S

  

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