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Pricing your Services - A ThreadYou own a business that offers a service? Good.
Don't make a lot? Not good.
How do you make profit in business? You charge the right amount to the right people.
But a majority of people charge too little.
Let's Go!
We've all been in a position where we want to accept a prospects offer - whether it's 50% off, 25% off, of even 75% off in extreme cases.
It's tempting - but don't. Ever.
It will RUIN you.
For the sake of the thread, I'll talk about Social Media Mgmt.
But don't - here's why:
It's tempting - but don't. Ever.
It will RUIN you.
For the sake of the thread, I'll talk about Social Media Mgmt.
But don't - here's why:
People who pay for price ALWAYS complain the mostClients who have ridiculous expectations for heavily discount prices are insane. 10/10 times.
These are the types that believe they should be getting more than they're paying for - even at a discount.
Walk away.
They are loyal to the PRICE, not to YOU"Oh but J! If they really like me they might keep me on!"
No. They won't.
The second someone comes in with a lower offer - you're out.
That said, you should be constantly providing value and managing client expectations as well.
Businesses that pay for price waste your timeDon't play tennis. Don't go back and forth with prices.
If they're trying to get the best price out of you, just walk away. Don't waste time.
In the time you spent ping-ponging about prices, you could've found someone else.
People who pay for price always seem to pay lateThis is experience - a gold tip from me to you.
The type of people who pay for price and not value always seem to pay late. This is to squeeze more out of you.
Again - don't.
THE WORST ONE: It'll RUIN your reputation. They'll spread the news how they got a "good deal" from you.You do NOT want that.
If they do word of mouth that is one of the first things they'll talk about.
You are here for money - NOT A CHARITY AWARD.
Don't play games. This is business.
The money which that business has haggled you down to is money out of your pocket.
It's money taken away from investment.
It's money taken away from rent.
It's money taken away from opportunity.
It's money taken away from freedom.
The money which that business has haggled you down to is money out of your pocket.
It's money taken away from investment.
It's money taken away from rent.
It's money taken away from opportunity.
It's money taken away from freedom.
How to Price ProperlyFirst things first
The second negotiations come into play with pricing. Decline. Decline and either explain why you're declining or walk away.
You are a premium service. Act like it.
Fee Levels and PackagesThis is the correct way of doing it.
Different fee levels will attract different clientele.
There are people who will pay a premium fee for your services, but they will have different expectations than someone who pays a smaller fee.
"Oh, Mr. J - I can't afford the Silver Package! Can you give me a better pri--"
"No, I can't. The Silver Package is premium - but what I can offer you is our Bronze Package."
Premium service. Premium cost.
If they still haggle - walk away. You've given them options.
"No, I can't. The Silver Package is premium - but what I can offer you is our Bronze Package."
Premium service. Premium cost.
If they still haggle - walk away. You've given them options.
For Example:
Bronze Package:
- Respond to Social Media Comments
- Post Content 4x a week on Instagram and Facebook
or (skipping silver)
Gold Package
- All the above including two extra posts for Instagram and Facebook
- Four hour Marketing Consultation
- Weekly Analytics
Bronze Package:
- Respond to Social Media Comments
- Post Content 4x a week on Instagram and Facebook
or (skipping silver)
Gold Package
- All the above including two extra posts for Instagram and Facebook
- Four hour Marketing Consultation
- Weekly Analytics
That is obviously a very rough example.
The price for the bronze package is Β£400 and the price for the gold is Β£2000. Per month respectively.
Remember though - your reputation is at stake.
If someone pays for Gold, you best deliver. Or your reputation is ruined.
The price for the bronze package is Β£400 and the price for the gold is Β£2000. Per month respectively.
Remember though - your reputation is at stake.
If someone pays for Gold, you best deliver. Or your reputation is ruined.
"But J, what about silver?"
Silver is where you want most people to be. This seems to provide the best value for money.
It offers elements of the Gold Package and all of Bronze
Silver Package
- All the above including two extra posts
- Weekly Analytics
Charge Β£800 per month.
Silver is where you want most people to be. This seems to provide the best value for money.
It offers elements of the Gold Package and all of Bronze
Silver Package
- All the above including two extra posts
- Weekly Analytics
Charge Β£800 per month.
I will say this as a word of caution.
It is FAR easier to serve 10 clients who pay Β£2000 a month than it is to service 50 clients who pay Β£400 a month - in terms of headache and general workload.
You also MUST over-deliver.
This is your reputation.
It is FAR easier to serve 10 clients who pay Β£2000 a month than it is to service 50 clients who pay Β£400 a month - in terms of headache and general workload.
You also MUST over-deliver.
This is your reputation.
Remember this:
Premium services are worth the investment if the client feels like they're getting their moneys worth.
Read that twice.
There is a reason why people pay for Business Class and First Class flights. There's also a reason why they sell.
Premium services are worth the investment if the client feels like they're getting their moneys worth.
Read that twice.
There is a reason why people pay for Business Class and First Class flights. There's also a reason why they sell.
Selling your packagesThe way you charge is based ENTIRELY on your skills and knowledge. How much do you think is fair?
Would you pay Β£400 a month for your skills?
Would you pay Β£2000 for your Gold Package?
The question you need to ask is what exactly are you offering?
Saying this:
"I will post 6x a day for brand awareness!"
"I will tweet 50 times a day for impressions!"
"I will post on Facebook to keep the brand alive!"
Is fairly useless to a normal business owner.
What does that even mean? What does a business care about?
Money. Like you.
"I will post 6x a day for brand awareness!"
"I will tweet 50 times a day for impressions!"
"I will post on Facebook to keep the brand alive!"
Is fairly useless to a normal business owner.
What does that even mean? What does a business care about?
Money. Like you.
"I can guarantee to you that I'll bring in more customers."
That's all they want to hear. Or whatever the pain point may be.
"I see you barely have anyone at your club. I can get more people in here."
Then offer the packages. Price them according to what you think is fair.
That's all they want to hear. Or whatever the pain point may be.
"I see you barely have anyone at your club. I can get more people in here."
Then offer the packages. Price them according to what you think is fair.
BUT REMEMBERYOU HAVE TO BE DELIVERING IF CUSTOMERS ARE PAYING YOU. ESPECIALLY PREMIUMS.
NEVER UNDER-DELIVER. ALWAYS OVER-DELIVER.
A HAPPY CLIENT WILL SPREAD GOOD WORD OF MOUTH.
AN UNHAPPY ONE WILL RUIN YOU.
That's it! A very basic guide to pricing a service based company.
Naturally, my DM's are always open.
If you liked this guide - please retweet for others to see.
Alternatively, leave a comment or whatever!
Naturally, my DM's are always open.
If you liked this guide - please retweet for others to see.
Alternatively, leave a comment or whatever!
