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Wrong! In reality, an offer is much more than the product or service you’ll deliver.
The offer is the full value you give in exchange for being paid.
To be honest, you can charge whatever you want for your services. Pricing is only a
small part of your offer. And, in my experience, clients who worry about price are
the worst clients (stay away from them). READ THAT LAST SENTENCE AGAIN
Here are some rules for pricing (add, remove and adjust as you deem fit for your
own services);
● Have a minimum fee for projects. Don’t accept work that’s below this amount
(unless it’s an experiment).
● Don't charge on an hourly basis. It’s better to have value-based pricing
(charging for the value you’re providing)
Value-based pricing?
"Value-based pricing is a pricing strategy which sets prices primarily, but not
exclusively, according to the perceived or estimated value of a product or service to
the customer rather than according to the cost of the product or historical prices." –
Digital Ambition
In simple English, this means that if I know the client's going to make more money
with my services, he'll get a higher invoice.
Yeah, I know this is a too-simple-to-be-true way to price your services. But it works.
I’ve managed to close hundreds of sales with these pricing strategies.
Note For Beginners: You will have to charge less than most people, as your first goal
is to build up your portfolio.
2. Attention-Grabbing Risk Reversal
Risk Reversal makes the client feel secure. It is the answer to, “what will happen if
[insert_common_objection].” I personally offer a 100% money-back guarantee if I
fail to deliver.
3. Discounts
Discounting Correctly
The discount needs to be easy to understand. In t he example below, you can see
there’s a N10,000 discount.
“This Contrast Effect (or principle) will, therefore, lead to an enhanced or diminished
perception of the second thing dependent on how we viewed the first” – Convertize.com
Imagine you just bought your first car. You paid a N6,000,000 down payment and
you’re ecstatic about your achievement.
If you’re like most people, you wouldn’t mind investing an extra N50K-100K on
some necessary car accessories if the salesman offers them to you.
This ‘sale above the sale’ is what’s known as an Upsell (persuading a customer to
buy something extra).
The Contrast Principle takes effect! It makes N50K feel like peanuts by comparing
it to N6,000,000.
4. Bonuses
Adding bonuses to your offers makes customers perceive them as more valuable.
Now, here’s something you can do with offer bonuses.
Instead of giving them away in the initial proposal, use them a negotiation resource.
Client: “ You know, Kenny, I still find that $1500 is a bit over my budget.”
You: “I completely understand where you’re coming from. You’re looking for the best
value-based offer for your company. So, here’s what I can do for you. Would you agree
to sign off on the deal if I added a free domain and a 1-year hosting plan (a $250 value)
for an extra $0 dollars?”
Bam! That’s how you handle objections (And yes, you can use bonuses to handle
objections and persuade your clients to buy from you).
5. Project needs
Every project has its own hurdles to jump. You’ll find out which problems you’ll
need to tackle during the ‘Pitching Your Offer’ phase.
So, don’t worry too much about this, as you can actually speak and exchange emails
with your clients to ask them more about their goals.
Later on, you’ll have full access to a client questionnaire you can use and adapt to
your needs.
6. Setting Expectations
Follow these simple guidelines, and you’ll have your offer in no time.