Today we want to share with you how to create a smart pricing strategy with value based pricing – and a story that made Sharon realise how everyone has their price.
In last week blog we told you the secret to charging more for your services
And this week we go that step further and show you
How to create a smart pricing strategy with value based pricing
Click the very short video to find out more. If you’d rather read, scroll down for the text.
What it’s worth
This is Sharon Hayes with Monitizationexperts.com
Today I want to share with you this idea of how if you are a coach or consultant value based pricing can be really worth considering looking at.
So I started my digital marketing agency about 5 years ago and I had a coach at the time, and I had a conversation with this coach and I’d said to him…
Everyone has their price
You know Mark, I don’t know what I should be doing right now because I no longer want to work with people consulting but I’m still having referrals coming to me, even now wanting to use me for consulting And so Mark said to me, you know everybody has a price. So he said how much would it take for somebody to offer you to work with them on consulting where you wouldn’t be able to say no to them. So I don’t know where the number came from but I said $50.000 and for me, saying to somebody $50,000 for spending time with me, just seemed like such a huge number, no matter what I’m making in my business. For my personal time, that was a lot of money.
What is it worth?
So when people after that started coming to me and would say Sharon I’m interested in finding out about your consulting I would say Well, I only work with one person on a monthly basis and our focus is on helping you put an extra $100.000 of profit within your business within 90 days if you follow the action steps that we are going to work out for you. What would this be worth for you?
Value based pricing
And here’s the interesting thing…
Is that, every single person, I said this too, what would it be worth for them to have a $100.000 and probably much more in extra profits everybody game me a number between $50.000 and $100.000 so I never even had to mention this ridiculous $50.000 dollar price tag.
So when you are looking at pricing for your services and you are doing something that could be correlated right back to profits and revenue within a business, I suggest that you look at some type of model similar to this to figure out what you are comfortable asking people for.
Now you know how to create a smart pricing strategy with value based pricing.