Index

1. Freelancing

2. Office Setup

3. Priority Management

4. Contract and Paperwork

5. Market Segmentation

6. Customer Profiling

7. Decision-Making Unit

8. Market Research V/S Institution

9. Product Development

10. Build Your Brand

11. Customer Aquisition

12. Pricing Strategy

13. Negotiation

14. Quantify Your Value Proposition

15. Off Season (Dry Time)

16. Cost of Customer Aquisition

17. Be There | Prepare | Say You Care

18. Next New Market

19. How to Scale Your Business?

20. Technology for Speed and Scale

 Chapter 12: Pricing Strategy

"Your Goal Shouldn't Be To Just Pay Your Bills

But To Be Paid What You're Worth"

1. Always Ask for Budget Before Giving a Price

2. Always Say 'We'

3. Always Shows a Bundled Price

4. Show Yourself a Consultant (Consultant's Reputation is More)

5. Do not Lower the Rates in the Hope of Future Work

6. Do Free Work for Testimonails Only

7. Put Revision in Different Scope (Limited Revision)

8. Increase Rates 5-10% Every 6 Months

9. Learn to Say No

10. Listen More than You Talk

11. Decide Shorter Days at Higher Rates (if Possible)

12. Schedule Work with Milestones - Track Your Time

13. Use Value Based Pricing

14. Know How Much You Will Charge

15. Plan Your Fee Structure

15.1. Per Hour

15.2. Per Day

15.3. Per Unit (Quantity)

 15.4. Project Completion Fee

15.5. Minimum Amount (Advance)

15.6. % Profit

16. Calculate Fee Structure

16.1. Billable Time

16.2. Purchase Made for Project

16.3. Overhead Expenses

16.4. Profit Margin

16.5. Market Considerations

16.6. Product Manufacturing Cost

17. Know Your Lowest Price - Do not Go Below That

18. Know the Benchmarks for Rates in Industry

19. Calculate and Communicate Your Worth to Clients

20. Do not Fear Price Fluctuation

21. Add a Special Budget for Change in Scope in Work

22. Calculate COGS (Cost Of Goods Sold)

23. Breakdown Your Decision-Making Unit (Whose the Descidor of Buyer's Side)

24. Identify Options Available For Customers

25. Pricing Should be Based on Product Life Cycle (Drop the Price at Later Stage)

26. Predatory Pricing

26.1. Price-Below Cost

26.2. Undercut Competitors

 26.3. Establish an Unfair Market Advantage

27. Define Your End Consumer's Profile

27.1. Opurtunistic Market - Low Quality and High Price

27.2. Premium Market - High Quality and High Price

27.3. Value For Money - High Quality and Low Price

27.4. Chinese Market - Low Quality and Low Price

28. Milking and Skimming

29. Barrier Pricing (Set a Barrier-Like Brand name, Services, Capturing Mass
Geographical Area like CocoCola)

30. Penetration Pricing

Penetration pricing is a pricing strategy where the price of a product is

initially set low to rapidly reach a wide fraction of the market and initiate word of
mouth. The strategy works on the expectation that customers will switch to the
new brand because of the lower price.

31. Loss Leading

32. Cost-Plus Pricing (Profit Margin on Overall Product Cost)

33. Hourly Rate (Freelancer works on this Model the Most)

34. Subscription Model

35. Licensing

36. Consumables

36.1. Printer - Ink

36.2. Razor - Blade

36.3. DVD Player - CD

37. Upsell - High Margin Product

38. Advertising Model (Like Youtube, Google)

39. Operating and Maintainance

40. Transaction Fee

41. Usage Based (Like Cloud)

42. ARPU - Average Revenue Per User per week/month/quater/etc

43. Franchise Model (Like McDonald's, Subway, KFC)

44. Offer Flexibility in Pricing Strategy (Different Customer Pay Different Amount)

"Overprice - No Sell

Underprice - No Profit

Do Right Pricing"

"The Moment You Make A Mistake in Pricing

You're Eating Your Profit"