Every business has a different unique selling proposition to stay fit amongst competitors, but is it a strong enough position to get you paid your target price? The mistake many businesses make is under pricing their product and service in order to gain customer testimonials, satisfaction and experience. In some cases, business are over pricing and not getting enough customers. So how do you create a pricing model that is both flexible and makes sense for the demand of the market?
In this lean start up session, we will look at:
1) Creating a pricing model that is not only competitive, but also flexible enough for negotiations
2) Avoiding the Price Wars…undercutting your price to win customers
3) Positioning your service/product to focus more on value and building strong relationships for increased profitability
2. About Art
Art Lee is a seasoned digital marketer with
extensive experience in leading and managing
technical projects across APAC and U.S. He has both
extensive technology and business skills which are
both required to effectively manage any digital
marketing campaign and to ensure business
objectives are met. The skills that are most valued
by clients is his ability to listen and to create
solutions.
5. Helping business owners (SMEs/Freelancers) to
build their own businesses on a lean(er) budget
Educate business owners to make informed
decisions (simple and effective)
Accommodate lowest common denominator - semi-
seasoned business owners
Encourage audience participation
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6. What are you worth? (market comparison)
What motivates your ideal client?
Position yourself for maximum profitability
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Where to start
Defining your monetary potential
7. Your worth is based on….
Economy
Market demands
Market sentiment
Motivations
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8. Charge based on demand
High Value
In
demand
Very Useful Not Useful
Selling Waste
yourself of time
short
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Low Value
9. Price/Cost…a moving target
Analyze Adjust
Competitors For large & small
Client Feedback To meet expectations
Motivations To match motivations
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10. Example as digital marketer….
Analyze Adjust
Companies (large and small) In-Line with competitors as a start
Adjusted once portfolio grows
Feedback (clients and prospects) Some had higher expectations
Goal is to make them feel they got
more than what they paid for
Motivations Speed to market/to complete
Added services
Expert insight (strategies)
11. Group Exercise: Analyze Competitors
Product Service
Take one product, compare it to Take one service, compare it
competitors & feedback: to competitors & feedback:
• How they are selling?
Do the same….
• How they are discounting?
(volume, tax breaks, extras)
• How successful/attractive are
they?
• How are they different than you?
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13. Exercise: Motivations
Products Services
List characteristics that motivate List characteristics that motivate
customer to do business with customer to do business with
you. you.
Price Level of service
Level of service Added value
Discounts Quality of work
Quality References
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15. Where do you play?
Highest margin- Max dollar for
bill rate/least max
amount of work value/satisfaction
Lowest
Too much work
margin/worst
for little money
expectations
16. Pricing Model Exercise: Service
Competitors How You Compare
Volume
Discounted/Low priced
Quick and painless
Certified
Total Cost: Your Cost:
17. Pricing Model Exercise: Product
Competitors How You Compare
Volume discount
Speed to deliver
Quick and painless
Total Cost: Your Cost:
18. Website Example
Competitors How You Compare
Speed to Deliver (volume) Takes a bit longer (quality)
Price (10K) Price 15K
Quick and painless Quick and painless
Simple design, placeholder Functionally efficient
for content, some functions
Approach that makes sense, last
Not happy for long…. longer
Total Cost: Your Cost:
Image: webpresence.tv
19. Summary
Be realistic with your pricing, mood changes when
work is much more than your cost
Client motivations are key to winning new clients
Don’t out price yourself unless that is your goal
Keep pricing flexible
Image: freemarketingmadeeasy.com
20. Get Busy Doing
or
Get Busy Losing
Good Luck!
Come talk to me if you have any questions.
Hinweis der Redaktion
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