Fan Out

For most people, the price is determined by using one of the following two tactics:

• Guesswork
• Copying other people’s guesswork

This is dangerous for many reasons but primarily it focuses you on “finding” that one, unique number for all. One single price for all cases is generally a very blunt instrument, which will prevent you from finding a really good fit in all cases except in the most typical cases of clients.

Instead, you need a price list that distributes your price into categories that allow flexibility but save you from on-the-fly decision-making when it comes to your price.

NOTE: each level should be more expensive than the lower one.

1. First, your minimum – at what price are you no longer losing money? This seems like a no-brainer, but I have met many people who are honestly not always sure.
2. Second, have a “friendly” price. It’s a price you use for current or future long-term clients.
3. Third, a “competitive” price – You are ok if they negotiate and you “settle” for this.
4. Fourth – your asking price – the one you open the negotiations with.
5. Fifth – your “urgent” price – the one you charge when you know clients expect to pay a premium and are fine with that
6. Sixth – your “no thank you” price – for when there are red flags, and you are hoping the client will say “no”.

In theory, knowing a single price is fine. In practice, a price list fits the bill much better.

1. Sixth – your “no thank you” price – for when there are red flags, and you are hoping the client will say “no”.

In theory, knowing a single price is fine. In practice, a price list fits the bill much better.