Pricing is one of those topics that can cause a lot of discussion. It’s pretty normal, when you are trying to price up a proposal, to have a discussion in your head about how high you should price it. Invariably you will have a “secret formula” that you use which contains your hourly rate and you multiply it by the number of hours you think it will take to get the job done. Then you use the “hmm will they think that’s too high” factor and most likely reduce your price. Does that sound familiar?
There is a great way to break out of this pricing equation approach and that is to build your price based on the value you deliver; or alternatively, defend your price based on the value you deliver. And it’s easier than you think. Follow these 3 steps and you’ll be able to more successfully defend your pricing, and probably put it up!
- Be clear on why your ideal clients would want your services. What is the transformation you provide them with? What’s the journey you take them on?
- Demonstrate the success other clients have had by using your services/products. Testimonials and case studies work really well for this.
- Always recap your prospects’ objectives for using your service/product before you give them the price as I would like to think your price is almost insignificant when compared to the value they will gain by achieving their objectives.
Take a look at your last 3 unsuccessful proposals. Did you articulate these 3 points clearly and fully? Incorporate these points into every new proposal you write and see the positive effect it will have.
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