the price is wrong
TRANSCRIPT
THE PRICE IS…WRONGPricing Strategies and
Understanding Your Value
@nathanalloteynathanallotey.com
HI. I’M NATHAN(freelance web designer)
WHO AM I?
You are valuable, if you don’t give yourself a raise
no one else will@nathanallotey
• Sesame seed bun
• Add Lettuce
• Add Big Mac sauce
• With a Bun in between
THIS IS A DOUBLE CHEESEBURGER
This is the auction mentality
This is what I was doing with my pricing.
I allowed my clients to determine what the pricing was.
Don’t allow your fears or anxiety to limit your income.
@nathanallotey
HOW MUCH DOES A WEBSITE COST?
Pricing is not a decision, it’s a strategy.
@nathanallotey
Perception (Position)
Confidence (Skills)
HOW MUCH ARE MY WEBSITES WORTH?
NATHAN $1,000
NATHAN
DESIGN STUDIO
$1,000
$5,000
NATHAN
@nathanallotey
DESIGN STUDIO
AGENCY
$1,000
$5,000
$10,000
I made $1,000
@nathanallotey
I missed out on $9,000
When you price too low, you run the risk of people
not taking you seriouslyLauren Hooker, Elle & Company Design
y
x
price
willingness to pay
LUXURY / PREMIUM
LOOKING FOR A DEAL
GIVE ME A HOOKUP
OPPORTUNISTIC
People will put you in a box at the least give them a
box to place you in@nathanallotey
HOURLY PRICING
FLAT RATE PRICING
PRICE ANCHORING
VALUE BASED PRICING
(rate x time + expenses) (one price for all work)
(focus on client benefits) (pricing options)
EXPERIMENT WITH PRICING
• Hourly Pricing • Flat Rate Pricing • Pricing Anchoring
$75 / hr PRICING
$250 FLAT FEE
• Hourly pricing should have a minimum.
• Flat rate pricing works if you can manage your time.
• Price anchoring increase the chances of winning a project (client’s choice).
EXPERIMENT RESULTS
VALUE BASED PRICING
Price based on the value provided not on the amount of time it takes to
complete the job.
“I WILL PAY YOU $300”
- client
If you give people the opportunity to pay less, they will
@nathanallotey
Value Based Pricing1 lead / day
7 leads / week
28 leads / month
15% turn into customers
4 customers / month
Value Based Pricing
$3,000 / customer
$12,000 / month
$400 / day
Knowing your value is one thing but communicating your
value is another. @nathanallotey
PRICING IS HARD
IS A PROCESS
KEY TAKEAWAYS• Know your value • (re)Position yourself in your niche. • Reach out to others to study their pricing. • Experiment with pricing options. • Use options in proposals involving price.
