Comments on: The Value of Value: Snippets On Pricing Our Services

By: T

Fri, 03 Apr 2009 04:47:18 +0000

That lesson of not bidding too low is one of the hardest lessons to learn as a service provider. But, always bidding low puts yourself into a pattern of a destructive “scarcity” mindset, and you’re almost forced to eventually break out of it.

By: Crystal

Crystal — Fri, 20 Mar 2009 17:06:29 +0000

@Barry You are the man. Definitely, as you say, we’re better off if we watch the market for a price range perhaps, but not the individual competitors. Not for pricing, anyway I was absolutely shocked to hear that a vendor was charging $25,000 to develop 2 PowerPoint decks (50 slides each). Even more shocking is that someone paid them. With that in mind, it is likely that someone is ALWAYS charging more than us.

By: Barry Wheeler

Barry Wheeler — Mon, 16 Mar 2009 21:16:45 +0000

You've learned some valuable lessons with pricing. Working as a consultant for many years, I found that there will always be lower priced. I try not to care what the competition is charging, but offer the best service that I can, depending on the work being performed. It's very evident that the market can only bear certain prices, but I'm willing to bet it's more than I'm charging now myself. Recent blog post from Barry Wheeler: Online Reputation Management: Fact or Fiction?

By: Laura

Laura — Fri, 29 Aug 2008 13:46:06 +0000

You aren’t paid what you’re worth, you’re paid what you negotiate!

By: Potluck Pricing: Letting Customers Choose What They Pay | Big Bright Bulb

Potluck Pricing: Letting Customers Choose What They Pay | Big Bright Bulb — Wed, 04 Jun 2008 11:57:03 +0000

[...] The Value of Value: Snippets on Pricing Our Services brought some great comments from consultants and service providers on how they set and stand by their rates. [...]

By: » Friday Favorites - Women's Health Research News blog from IdeasForWomen.com

Fri, 30 May 2008 18:22:02 +0000

[...] had a good post this week about “The Value of Value: Snippets On Pricing Our Services” – make sure you know what your work is [...]

By: Crystal

Crystal — Wed, 28 May 2008 04:16:52 +0000

Hi Jeremy, James, and GirlPie! I’m turning in early for a change, but didn’t want your great comments to go unacknowledged until tomorrow. Will respond when I’ve had some sleep in me

By: GirlPie

GirlPie — Wed, 28 May 2008 03:54:23 +0000

James has a goof point: the VALUE of our service to the client. Something I say in the first 10 minutes of a consult may eventually reap that client millions (ridiculous but true in my industry.) I don’t take a cut of that possible profit, but them knowing that it’s POSSIBLE (even if it’s a longshot) will help them pay/justify the steepest of fees.

Thanks for drawing so many smart comments to your prime post. Your blog serves a double-shot of savvy!

By: James Hipkin

James Hipkin — Tue, 27 May 2008 23:16:10 +0000

What to charge is a dilemma and your post brings up many of the factors to consider. I have been on both sides of this fence.

When I was an independent consultant I charged a lot but compared to what a client would have to pay for a consultant from a big firm, who probably had less than half my experience, I was cheap. Put what you charge into context and you can probably charge more than you think you can.

I also consider the value of what we are bringing to the table. We recently had an assignment from a new client. I told then it would be $X per month to manage the day-to-day work involved with their online advertising. If they wanted us to contribute to their positioning / product development then that would cost $150K since they would reap the long-term benefits of our contribution. They paid us an additional $125K for this service. My boss was very impressed.

As a purchaser of freelance talent I pay top dollar to a select group. They are all very good, read quick, and always come through for me. If they don’t then I don’t continue to use them. Because I pay top dollar they are usually available to help me out. I also try to minimize the PITA factor. This also helps with their availability

Finally, if you don’t get turned down 20% of the time you aren’t charging enough.

Recent blog post from James Hipkin: Small Business – Is the Internet Right for You

By: Crystal

Crystal — Tue, 27 May 2008 19:03:35 +0000

Howdy Kelly—Based on the stories I’ve heard, including the comments above, if you potential clients aren’t balking or complaining OR saying “Is that all?”, or replying quickly as if to clinch the deal before you change your mind, your prices are probably perfect!

As for choosing a rate you can live with, tight belts are rarely fun, so there will likely be times when we will take what we can get, and like Sterling said, some opportunities are worth “eating little to eat long”. But we’re hurting ourselves when that’s our default mode, ya know?

Great comment, thanks!