Do you know how to charge your service clients?
Do you understand and can you clearly communicate the value of what you deliver?
These are two of the topics I dug into when I was on School for Startups Radio with Jim Beach (start audio 34 min, 48 sec).
Jim and I met at the Fall New Media Summit in Austin, TX. Here’s a bit of what we talked about.
How to Set the Price
There are many ways to set the price however people usually default to two standards. Beginning here we take a look at what they are, why we use them and why we should start somewhere else. We focus on value pricing – using our intuition and some analysis.
We talk about a few specific examples like pricing based on time. Or how to determine what is “fair”. How we have to also consider value in the context of the alternatives that are available – including doing nothing.
How to Get the Price
Setting the price is just one part of pricing. Often people stop here without really thinking about how they’re going to get the price they set. Jim specifically asked me how to set the price for coaching services and how to justify it.
We talk about the importance of knowing the customer as the first step in setting the “right” prices. Then we discussed some strategies you can use when customers challenge you on the price.
Enjoy the episode (start audio 34 min, 48 sec) and be sure to check out some of the other great interviews on School for Startups Radio. Enjoy pricing!