Random thoughts on pricing
This week has been all about pricing. Not sure why. Here are some random observations:
1. A price increase can do wonders for you. I just announced to my newsletter list a big price increase (by $100) on the AttractNewClients site (based on testing), and invited them to get in before prices go up. Response has been fantastic, easily 3 times more than my usual newsletter offers. Price increases with a deadline can cause people on the fence to take action.
1a. A web designer I work with did the same thing recently. He indicated that he is raising rates to $75 per hour from $50 per hour, starting with all new clients. Old clients could still take advantage of his $50 rate through November. He got REAL busy, fast.
2. Asking for a high price can do wonders for you. A colleague of mine shared that a catalog company asked him to bid on developing a website. He’d worked with this firm before, and knew they were difficult to work with. So he bid high. Really high. High enough to make the job well worth it to him. And he got the job!
3. Stop being a low-self-esteem pricing victim. You don’t want to appear needy as a professional. Instead, communicate your value so that pricing doesn’t even become a (major) issue. Pricing is always in the background, of course. But if you show your value and that you want the job — but don’t need it — you can ask for higher prices.
4. Here’s a new one: I offered a client a low price to write a quick strategic plan for them, say $500. I did that in order to show them what I can do and position myself for a much larger project coming up. The company liked my work so much that they insisted on paying me $1,000. That’s never happened before. But it sort of relates to the third point above: Once you establish yourself as a valuable advisor, price takes care of itself.
Comments on any of these appreciated!