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Value-Based Pricing for Freelancers

Value-Based Pricing for Freelancers

Brennan Dunn

July 11, 2013
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  1. Value-Based Pricing
    How to make your clients happier by charging more.

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  5. $100

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  6. $100

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  7. $100

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  8. $100
    $10

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  19. Why should I pay you $150 an hour to
    write Ruby when that other guy will do it
    for $15?

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  21. RACE TO THE BOTTOM

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  22. RACE TO THE BOTTOM
    COMMODITIZATION

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  23. RACE TO THE BOTTOM
    COMMODITIZATION
    MARKET RATES

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  24. VALUE-BASED
    PRICING TO THE
    RESCUE!

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  25. A Paradigm Shift

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  26. A Paradigm Shift
    ★ You are no longer a Ruby developer

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  27. A Paradigm Shift
    ★ You are no longer a Ruby developer
    ★ No one cares about Ruby or Rails or
    whatever you take pride in

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  28. A Paradigm Shift
    ★ You are no longer a Ruby developer
    ★ No one cares about Ruby or Rails or
    whatever you take pride in
    ★ Clients want to know: "What's in it for
    me?"

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  29. Take The Spotlight Off Yourself

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  30. Take The Spotlight Off Yourself
    ★ Reverse engineering salaries

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  31. Take The Spotlight Off Yourself
    ★ Reverse engineering salaries
    ★ Figuring out what your peers charge

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  32. Take The Spotlight Off Yourself
    ★ Reverse engineering salaries
    ★ Figuring out what your peers charge
    ★ It’s all about me, me, me

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  33. And Start Understanding Your
    Clients

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  34. And Start Understanding Your
    Clients
    ★ Are they losing money? Are they
    missing out on untapped revenue?

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  35. And Start Understanding Your
    Clients
    ★ Are they losing money? Are they
    missing out on untapped revenue?
    ★ How can you increase core KPIs?

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  36. And Start Understanding Your
    Clients
    ★ Are they losing money? Are they
    missing out on untapped revenue?
    ★ How can you increase core KPIs?
    ★ How can you help them fix their pains?

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  37. Focus On The Future

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  38. Focus On The Future
    ★ Most of us bill. We look to the past.

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  39. Focus On The Future
    ★ Most of us bill. We look to the past.
    ★ ...What can this project do for my client?

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  40. Focus On The Future
    ★ Most of us bill. We look to the past.
    ★ ...What can this project do for my client?
    ★ How will this improve what matters?

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  41. Focus On The Future
    ★ Most of us bill. We look to the past.
    ★ ...What can this project do for my client?
    ★ How will this improve what matters?
    ★ How can I further improve their KPIs?

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  42. Tech Is A Means To An End

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  43. Tech Is A Means To An End
    ★ No one is paying you to write code

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  44. Tech Is A Means To An End
    ★ No one is paying you to write code
    ★ People pay you to make more money

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  45. Tech Is A Means To An End
    ★ No one is paying you to write code
    ★ People pay you to make more money
    ★ EXPLOIT THIS!!!

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  46. Be An Investment, Not An Expense

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  47. Be An Investment, Not An Expense
    ★ Most don’t recognize the value we
    produce

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  48. Be An Investment, Not An Expense
    ★ Most don’t recognize the value we
    produce
    ★ We focus on the deliverables. The code.
    The features. The workflows.

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  49. Be An Investment, Not An Expense
    ★ Most don’t recognize the value we
    produce
    ★ We focus on the deliverables. The code.
    The features. The workflows.
    ★ None of this matters.

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  50. Level Up Your Business Skills

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  51. Level Up Your Business Skills
    ★ ROI, TCO, KPIs, utilization, profitability,
    overhead

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  52. Level Up Your Business Skills
    ★ ROI, TCO, KPIs, utilization, profitability,
    overhead
    ★ Make sure every meeting, every
    proposal, every LoC aims to benefit a
    particular KPI that matters to your
    clients.

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  53. “Brennan, You’re Throwing Out A
    Lot Of Jargon!”

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  54. “Brennan, You’re Throwing Out A
    Lot Of Jargon!”
    ★ Yes I am.

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  55. “Brennan, You’re Throwing Out A
    Lot Of Jargon!”
    ★ Yes I am.
    ★ The $10 coder overseas doesn’t use this
    jargon.

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  56. “Brennan, You’re Throwing Out A
    Lot Of Jargon!”
    ★ Yes I am.
    ★ The $10 coder overseas doesn’t use this
    jargon.
    ★ And this is how you’re going to get
    ahead.

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  57. And now...

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  58. And now...
    THE SECRET TO GETTING
    PAID MORE MONEY

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  59. Value based pricing focuses on the
    destination, not the road.

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  60. When our focus is correct, the risk
    that we'll fail to solve the business
    problem(s) at hand is lower.

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  61. And when we can clearly
    communicate that we know what's
    at stake and we know what that
    goal is, we’re perceived as low
    risk.

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  62. Clients want to hire someone who
    knows their business, its needs,
    and has the technical knowhow to
    get from today to tomorrow OVER
    the person who is merely adept at
    coding.

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  63. If a client think there's a 50%
    chance that a project will fail (e.g.
    a website redesign won't result in
    more customers) and is quoted
    $50k, the true cost is $75k after
    self-insuring for failure.

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  64. Reduce perceived risk by aiming
    for the right target and helping
    your client get to that target faster
    and more efficiently, and you'll be
    able to charge more.

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  65. Value-based pricing means
    focusing on the client, not
    yourself, and pricing based on the
    expected outcome of a successful
    project completion via
    establishing a low risk profile.

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  66. Ê>
    >
    >
    2>Ê+"(>.
    Over 3,000 freelancers are
    charging more. Are you?
    doubleyourfreelancingrate.com
    use coupon RUBY for $10 off

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