How to Set Your Prices
The Big Questions
How much should I charge for Christmas light installations?
Am I making enough margin?
Will my customers be happy with my prices?
Ultimately, if your prices cover your desired margin and still keep customers coming back, you’re on the right track.
Two Essential Pricing Strategies
Standard Markup Pricing
This method uses a simple formula:Actual Cost + Markup = Price
For example, if your light string costs $20 (including shipping) and you want a 30% margin, you’d charge $28.57.
Think in margins: What do you need to earn to make your time and business worthwhile?
Value Pricing
Set prices based on what customers are willing to pay—not just on costs or competitor pricing.
Value pricing works well during the holiday season: demand goes up, and customers often prioritize safety, convenience, and quality.
Focus on features that increase perceived value, like “commercial grade, custom-fit lights” or “free storage.”
Educate your clients about why your service is worth the investment.
Why Both Approaches Matter
Standard markup provides a baseline for healthy margins.
Value pricing lets you maximize profit, especially when your service is clearly better than alternatives.
The combination helps ensure repeat business and stronger brand reputation.
Pro Tip: Communicate what sets you apart and be ready to explain your value; customer education and clear marketing are key to achieving higher perceived value and profits.
How to Present Your Pricing
Keep It Simple and Clear
Customers are more likely to accept your pricing if it’s easy to understand. Avoid sharing your markup or costs—focus on value and clarity. Simplicity helps prompt confident, quick decisions.
Two Common Pricing Presentation Methods
Price Per Foot
Quote your service based on the length being decorated (e.g., $7.00 per foot for product, installation, removal, and accessories).
Advantages:
Simple for customers to calculate.
Easy to adjust if measurements change.
Fast to quote using emailed photos or Google Street View.
Disadvantages:
If you underestimate labor or length, you may lose money or face awkward adjustments.
Customers may question the per-foot price—be prepared to explain clearly and reasonably.
For more complex jobs, adjust your labor quote (+/- 30%) based on experience.
Flat Fee
Give one total price for the project (e.g., $800 including all product and labor).
Advantages:
Predictable and reassuring for customers (especially commercial clients).
Makes budgeting easier.
Disadvantages:
Adjustments are difficult after quoting.
Customers may resist changes if you missed something in your estimate.
Keep notes to help refine estimates for repeat clients.
Separating Costs
You may list product and labor separately—especially helpful in Year 1 when product costs are highest.
Let clients know that product is a one-time investment, while labor is recurring.
Don’t separate install and removal—bundle as one fee for simpler invoicing, better cash flow, and easier upselling (like booking for next season during removal!).
Final Tips for Sustainable, Successful Pricing
There’s no one “right way”; what matters is achieving healthy margins and happy repeat clients.
Test both per-foot and flat-rate methods to find what fits your business and market best.
Tweak your processes yearly—constantly refining your strategy leads to long-term business growth.
Always be open to feedback and reach out if you have questions. Our team is here to help you succeed!