Read on Twitter
Close Projects at a Higher Price
A Short thread on Price Structuring
Good Habits for Freelancers
/THREAD/
A Short thread on Price Structuring
Good Habits for Freelancers
/THREAD/
The hard work has paid off!
You got your lead interested, and they're looking for a quote.
Yes!
You sit down at your desk with an icy water and get to work.
Labor
Equipment
Materials
Done.
After markup, itcomes to about $5,000.
DO NOT SUBMIT A QUOTE FOR $5,000!
You got your lead interested, and they're looking for a quote.
Yes!
You sit down at your desk with an icy water and get to work.
Labor
Equipment
Materials
Done.
After markup, itcomes to about $5,000.
DO NOT SUBMIT A QUOTE FOR $5,000!
This is a TERRIBLE offer to a client.
ESPECIALLY if you expect some negotiation.
ESPECIALLY if you expect some negotiation.
REASON NUMBER 1 
PERCEIVED ACCURACY
$5,000 looks like you just pulled a number out of the air.
It screams
"I dunno, would do you think this would be fair?"
We like "nice" numbers.
Your TV volume is set to 20 or 25, but never 23.
But for pricing? It's weak.
PERCEIVED ACCURACY$5,000 looks like you just pulled a number out of the air.
It screams
"I dunno, would do you think this would be fair?"
We like "nice" numbers.
Your TV volume is set to 20 or 25, but never 23.
But for pricing? It's weak.
Compare this to a quote of $5,140.
This is a much more confident number.
You've projecting that you've done the work
Item
By
Item
And you've got a number you can stand behind.
When you close the deal
Take the extra $140 and have a steak dinner on me.
This is a much more confident number.
You've projecting that you've done the work
Item
By
Item
And you've got a number you can stand behind.
When you close the deal
Take the extra $140 and have a steak dinner on me.
REASON NUMBER 2 
ANCHORING
You're selling a used laptop online.
You list it for $600
I PROMISE YOU you're going to receive offers of
$300
$500
$400
Because you've presented the item in units of 100.
ANCHORINGYou're selling a used laptop online.
You list it for $600
I PROMISE YOU you're going to receive offers of
$300
$500
$400
Because you've presented the item in units of 100.
Instead offer it for $625
Now you're dealing with units of $25 dollars.
Your counter offers are much more likely to be
"I'll give you $600" or "Will $550 work?"
(Pro tip: Tell them no. Collect the $625.
You followed rule 1. They'll pay full price)
Now you're dealing with units of $25 dollars.
Your counter offers are much more likely to be
"I'll give you $600" or "Will $550 work?"
(Pro tip: Tell them no. Collect the $625.
You followed rule 1. They'll pay full price)
See how much stronger our $5,140 quote looks now?
LESS clients are going to negotiate a price
Because the number is looks strong
And you know what you're doing
Those that DO counter offer
are going to be SMALLER
Because we're anchoring
In TENS (not THOUSANDS!)
LESS clients are going to negotiate a priceBecause the number is looks strong
And you know what you're doing
Those that DO counter offerare going to be SMALLER
Because we're anchoring
In TENS (not THOUSANDS!)
Did this help you?
Drop a like
Someone you know?
Retweet
Want more like this?
Following is free! https://twitter.com/MoreThanHabits/status/1274060281111556096?s=20
Drop a like
Someone you know?
Retweet
Want more like this?
Following is free! https://twitter.com/MoreThanHabits/status/1274060281111556096?s=20
