John Morton - Intro to Value-Based Pricing

Learn how traditional pricing methods work against you and your clients, a conversational approach for uncovering how much a prospect will pay, and how to use a value-driven pricing strategy with your next client

Transcript

1. /1 / Archive x Creative Pulse / 2018 Intro to Value Based Pricing
2. “The idea of pricing your work based on the quantifiable value it will provide long term.” [ ] / 2
3. MONEY [ ] / 3 RISK [ ] TIME [ ] CONFIDENCE [ ]
4. MONEY [ ] / 4
5. /5 / Understand their business • Have you identified a CLV? If not, what is a customer worth to you on avg? • How many do you generate each year? How to talk $$$
6. “By establishing incentive, the client feels more comfortable doing business with you.” [ ] / 6
7. /7 Establish yourself as a fellow business person trying to empathize with their business problems.
8. / 8 RISK [ ]
9. /9 Risk aversion and ROI / Step aside Mom/Pop! $1x $5x $10x
10. “What you charge is relative to the risk of the company.” [ ] / 10
11. / 11 TIME [ ]
12. /12 What’s your hourly rate?
13. “Charging by the hour punishes me for being good.” [ ] / 13
14. “What you charge is a show of your perceived experience.” [ ] / 14
15. / 15 CONFIDENCE [ ]
16. /16 / So Mr/Mrs client… • “What criteria would you use to determine the right vendor?” • “Is there some risk to choosing the wrong vendor?” • “Is there any other reason why you wouldn’t want to invest in what we’re proposing?” • “What does success look like to you in 6 months?” Direct, high- integrity questions to ask
17. “You have to believe what you’re worth” [ ] / 17
18. /18 / Here’s the big difference • Higher profit clients will ALWAYS go for value-based pricing • Margins are healthier • Work less, make more High vs Low Margin
19. /19 / Value based pricing... Quantifies your value in ways a client can relate to their profitability. Allows you to shift the conversation to how they measure the results they get. In doing so, you position yourself as a trusted advisor that helps clients become more profitable. In summary
20. BREAKOUT [ ] / 20
21. /21 / This is what I charge... • What criteria would you use to determine the right vendor? • “Is there some risk to choosing the wrong vendor? • Have you identified a CLV? If not, what is a customer worth to you? • How many customers do you generate each year? • What does success look like to you in 6 months? • Is there any other reason why you wouldn’t want to invest in what we’re proposing? Role Play Tweet: @ArchiveDigi