If you are here it is because you heard Alex Langshur and me talking on the Google Partners podcast about products, value propositions and pricing!
If you are here it is because you heard Alex Langshur and me talking on the Google Partners podcast.
The conversation about pricing can be a dicey one. Not only because what businesses charge is proprietary, but also because methods of pricing can vary quite a bit. Some have buttoned down processes that track expenses, calculate hourly rates, and arrive at a margin. Others go mainly on instinct or observations of what other companies are doing.
But if marketers avoid looking closely at their pricing, do they run the risk of losing money? What are the gains of pricing more strategically? Pricing really comes down to two things:
To answer these questions, it can be very helpful to get an outsider’s perspective.
Our guest today is business coach Robin Waite. Robin has helped improve pricing structure, leverage value, and grow the bottom line for many businesses. Guest - Robin Waite, Business Coach From 2004 to 2014, Robin Waite ran a design and advertising agency that served more than 250 clients. During that time, he began delivering workshops and classes that helped more than 1,000 business owners improve their marketing, product architecture, pricing, websites and digital advertising.
As a business coach, Robin combines creativity with logical, analytical and objective thinking to help entrepreneurs become more successful. His best-selling books are Take Your Shot: How to Grow Your Business, Attract More Clients, and Make More Money and Online Business Startup: The Entrepreneur's Guide to Launching a Fast, Lean and Profitable Online Venture. When not coaching or writing, Robin loves nothing more than spending time with his wife and two young daughters.
Pricing is one of the most important decisions you can make as a marketer. But most people don’t think about it strategically or systematically, and they end up leaving money on the table. In this post we'll look at how to assess and improve your pricing strategy so that you're getting what you deserve for your work.
In order to determine the right price for your product, you should first be asking yourself a few questions:
Pricing is a sensitive topic. It's also a difficult one to discuss with clients and colleagues. It's hard to get right, but even harder to get wrong.
So why do marketers avoid looking closely at their pricing?
Pricing more strategically can help you increase revenue, decrease costs and improve client relationships. In fact, many marketers believe that pricing is one of their most important levers for growing profitability and delivering better customer experiences. Here are some of the gains we've seen:
When it comes to pricing, the most important thing is to define your value. It's important that you know what makes you different from your competitors and how much of a difference it makes for clients. You should also be honest with yourself about how much time and effort go into creating the work that you do, as well as what kind of ROI (return on investment) clients receive from working with you in comparison to doing things themselves or hiring someone else.
You may have noticed that there are some common themes here: knowing your competition, knowing who your target market is and being able to define their needs accurately (so they can see how valuable what you offer is), understanding costs involved in producing content/services/etc., knowing what clients are willing to pay for said services/content/etc., etc., etc..
To get the most out of your pricing, you need to communicate the value that you provide. That can mean showcasing your work and success, showing off clients, highlighting the team that works with you or demonstrating expertise in specific areas. Or it could be something else entirely!
The point is that if someone knows what they're getting from working with you (and why), then they will be much more likely to pay for it.
The value of your product or service is subjective and relative. This means that it's not a static number, but rather a sliding scale based on the needs and wants of your market, who they are buying from, and what they can afford.
It's important to know who you're selling to when setting pricing for marketers because the value of something will vary based on who that person is. For example: A $100 t-shirt might be worth more than 10 $10 t-shirts if someone really loves dogs and loves wearing dog-themed clothing (and let's be honest - who doesn't?).
Your job as a marketer is not only understanding how much people are willing to pay for your product or service but also knowing how much competitors charge for theirs so that you can stay competitive while still making money!
Now that you have a clear understanding of your problem and its solution, it's time to set goals.
Setting goals is an important step in the process for any marketing campaign. You need to know what you want before starting on a solution. If you don't have specific targets in mind, then how will you know if your marketing efforts were successful?
For example: If I said my goal was "I want people who visit my website to buy something," but didn't tell anyone else this was my goal--and then never checked back with them afterward--how would anyone know if I achieved success or not? They wouldn't!
The same goes for fitness: If someone says they want lose weight but doesn't specify how much weight or how long it'll take them, then there's no way for them (or anyone else) ever know whether or not they've been successful at reaching those goals!
Pricing is a complex issue. There are many factors to consider when pricing your products and services, including:
Pricing is a complex process that requires careful consideration. As marketers, we know how important it is to be strategic in our approach and understand all of the variables at play. Pricing is an essential part of your business and one that shouldn't be overlooked when making decisions about marketing strategy or budgeting for planned campaigns.
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This Scorecard has been designed to show Coaches, Consultants and Freelancers their blind spots and provide instant, actionable steps on how to increase their prices.