How to price your services for the maximum fee possible
Pricing isn't easy and it's made harder when there are so many people pitching for the same work. Done right though, you can not only win the job but win it at a higher rate than your competition.
This is how to price your services and how to get a higher fee.
Finding out the budget. This is from our friend, Troy Dean over at WP Elevation but the strategy goes like this. You first want to find out the budget so you just ask outright like you would any normal question - why? Because it is normal, so you just say:
"What is your budget for this project?"
If they say they don't want to tell you, or insinuate they don't want to give you a clue, you just say "Oh, it's okay, you don't have to tell me what it is, I just want to make sure you have one".
This is key for a number of reasons. First, if they don't have one, you're now best placed to help them come up with one. Secondly, it's a nice little positioning statement that lets them know you're unlikely to work with them unless they have one.
Paula Scher famously sold The Citi Group a logo for $1,500,000. It took her 5 minutes to draw and she did it in the meeting.
Here's the full story. It's a great lesson in charging on the value to the business rather than the time it took you to do it.
When presenting your price on your Investment page in your proposal, it's a really good idea to use this opportunity to get a testimonial in there. It can work wonders in "softening" the mental moment of seeing a high price.
The price shouldn't be a total surprise but it can help soften the blow. Here's how it might look in reality:
Allowing your client to up-sell themselves with a base price already set can be a nice way of getting a little extra boost on the transaction value. If you do this right you can easily get another 10% on each deal.
When you get really good, you want to look out for the features, or things your client's eyes light up for. These are always the things you make the up-sells because they'll nearly always choose it.
Here's an example of how this looks to your client when viewing a proposal with options they can select:
It's not a good idea to present packages because the risk of choosing the wrong option is too great. If you're asking someone to choose between a $1, $1.25 or $2 option, it's not difficult. The cost of getting that decision wrong is marginal. Who cares.
The same thing doesn't apply when you're making a business decision where the difference in price is in the thousands. Try to avoid putting your potential clients in positions where they are in control of decisions they're not really qualified to make.
Get the budget, find out what they want and present them with the right solution. Don't give them an "out" with a cheap option just because you're not confident enough in your recommendation. If that is the situation, work on it.
Try to take a doctor's approach. Ask questions, listen, do your discovery and then prescribe the solution.