Pricing is just quantified value written down. It is also a big part of the product’s image, because even if your clients can’t really understand what you do, they at least understand the price and how it compares to alternatives.
I admit, going rates serve one important role in pricing: they signal the average price, and thus set the expectation about the connected level of quality. Average quality and average price go well together as a message. Offering a lower, bare-bones quality and a price below the going rate is Read more…
Industries are diverse, and their local variations are even more so. Each of these is likely to have many unspoken rules and conventions, signals of being the “real deal”, “in the know”, or some other expression of belonging to the in-group that can be trusted. These can and will include Read more…
When American president Woodrow Wilson was asked how much time he spent preparing his speeches he said: That depends on the length of the speech. If it is a ten-minute speech it takes me all of two weeks to prepare it; if it is a half-hour speech it takes me a Read more…
It’s fair to charge the same price for the same work, right? Here’s the tricky part: there are at least two equally valid ways of defining “the same price”. The first one is obvious: a client from Madrid, Spain, and a client from Tangiers, Morocco pay 200$ for my service- they paid the Read more…
I have been there, so many times. Planning, rehearsing, and getting ready to call out the price I think I deserve. The moment comes, the time is right, I grit my teeth – aaand blurt out a lower price. This is bad on many levels, but the gut-punch feeling of letting myself down Read more…
It’s often said that you cannot compete on price with something that’s free – provided by the government, subsidized, done by free volunteers, a donation-backed NGO, or a collective, open-source solution. As it often goes with things that are often said, it’s not entirely true. It’s like saying that a human can’t Read more…
Does the invoice you send need to contain exactly what you charged them for, item by item? To nobody’s surprise, I would argue that supplying a detailed breakdown only makes the whole experience worse for everybody. First, we are not talking about the grocery bill here – if my dentist charges me without divulging the Read more…
Unlike a done-for-you service, consultative services like coaching, consulting, tutoring, teaching, or mentoring seem a lot harder to price on value, since it’s clear that the project’s full value will only come about if the client actually follows through with your advice. In general, you should not feel pressured to Read more…
Should your price reflect that you enjoy doing what you are doing? If you love what you do, I would argue this should not affect the price. Your work will reflect your passion of course, as will probably your reputation, and your general demeanor towards clients, which are all good things. But not your price. I think your Read more…
It’s not really uncommon for clients to know what they want to get from you, but at the same time have a very vague idea about what they actually need you to do for them. Then, of course, there are clients that only know they need a [specialist of your kind] but even their Read more…