We will discuss the three most common ways how to price your services:
- Hourly rate
- Project rate
- Service as a product
But basics first.
How to Price Your Services in a Way You Don't Get Busto
// A THREAD //
We will discuss the three most common ways how to price your services:
- Hourly rate
- Project rate
- Service as a product
But basics first.
Rather build a very close relationship with it.
It:
- helps you to increase/decrease demand
- gives hints about how good/bad your service is
- positions yourself on the market
Know how to use this tool.
Imagine someone selling you a car for $350.
What would you think about it?
Exactly.
Set the fair price, not the scam inducing one.
The cheap price will bring you a specific sort of people.
- to be polite.
So always compete with quality, not price.
This is the most straightforward way how to set your price.
How to set it?
The basic equation may look like:
[Monthly target profit ($) + All costs ($)] / no. of billable hours in a month
PS. Even if you're starting out don't get much lower under this price.
Get an idea: https://t.co/BGibIPZeqX
Advanced calculator: https://t.co/QnzbtDRTUw
If you're not sure set a little lower hourly rate and then you can increase it.
Remember: "Price is the tool to use".
This means you will tell the client how much (exactly) he will pay before the work even starts.
Let's say somebody wants a website:
So you take:
- 15 hours for creating it
- 5 hours for communication
- 20% time reserve
Project rate = 24 hours * hourly rate
Using the hourly rate (and take reserve) is the easiest way. Break the price down to the client as well.
PS. $3000 for a website seems like you have a HUGE margin there. Better say $3180 and put yourself into a better negotiation position.
- Turnkey website
- Course
- Workshop
The "service" has defined
- Scope
- Price
- Complexity
You can see this type of pricing mostly on platforms like UpWork or Fiverr.
It's not ideal for any type of service but for some as:
- Small websites
- Logo making
- Template design
It may be the best solution for both sides.
But always check what's the standard in your niche.
More from Freedom Designer
5 Micro Skills That Will Improve Your Life Drastically
// A THREAD //
Even the small things compound over time... and become huge.
And they become HUGE.
This is the list of small skills that will improve your life A LOT over time, you can't even imagine how much... before you give it a try.
I'll present the skills in form of mini challenges.
1. Type with all ten fingers 10 days - 10 mins in the morning.
Most of us spend a lot of our time behind the computer typing.
Yet, not many people know how to write with all ten fingers —> drastically faster.
You can learn it for free here:
https://t.co/ow2WTHrXBJ
2. Make at least one Zap
Zappier allows you to make micro workflows between the applications you use.
Let's say you have to calendars (work and normal) and you want to sync them all the time —> Zappier
2b. You send an email every month remind your customers to pay the maintenance fee + reminder them if they won't —> Zappier
You want an email notification every time someone edits a Google sheet —> Zappier
Basic version is free. @zapier
// A THREAD //
Even the small things compound over time... and become huge.
And they become HUGE.
This is the list of small skills that will improve your life A LOT over time, you can't even imagine how much... before you give it a try.
I'll present the skills in form of mini challenges.
1. Type with all ten fingers 10 days - 10 mins in the morning.
Most of us spend a lot of our time behind the computer typing.
Yet, not many people know how to write with all ten fingers —> drastically faster.
You can learn it for free here:
https://t.co/ow2WTHrXBJ
2. Make at least one Zap
Zappier allows you to make micro workflows between the applications you use.
Let's say you have to calendars (work and normal) and you want to sync them all the time —> Zappier
2b. You send an email every month remind your customers to pay the maintenance fee + reminder them if they won't —> Zappier
You want an email notification every time someone edits a Google sheet —> Zappier
Basic version is free. @zapier
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1/“What would need to be true for you to….X”
Why is this the most powerful question you can ask when attempting to reach an agreement with another human being or organization?
A thread, co-written by @deanmbrody:
2/ First, “X” could be lots of things. Examples: What would need to be true for you to
- “Feel it's in our best interest for me to be CMO"
- “Feel that we’re in a good place as a company”
- “Feel that we’re on the same page”
- “Feel that we both got what we wanted from this deal
3/ Normally, we aren’t that direct. Example from startup/VC land:
Founders leave VC meetings thinking that every VC will invest, but they rarely do.
Worse over, the founders don’t know what they need to do in order to be fundable.
4/ So why should you ask the magic Q?
To get clarity.
You want to know where you stand, and what it takes to get what you want in a way that also gets them what they want.
It also holds them (mentally) accountable once the thing they need becomes true.
5/ Staying in the context of soliciting investors, the question is “what would need to be true for you to want to invest (or partner with us on this journey, etc)?”
Multiple responses to this question are likely to deliver a positive result.
Why is this the most powerful question you can ask when attempting to reach an agreement with another human being or organization?
A thread, co-written by @deanmbrody:
Next level tactic when closing a sale, candidate, or investment:
— Erik Torenberg (@eriktorenberg) February 27, 2018
Ask: \u201cWhat needs to be true for you to be all in?\u201d
You'll usually get an explicit answer that you might not get otherwise. It also holds them accountable once the thing they need becomes true.
2/ First, “X” could be lots of things. Examples: What would need to be true for you to
- “Feel it's in our best interest for me to be CMO"
- “Feel that we’re in a good place as a company”
- “Feel that we’re on the same page”
- “Feel that we both got what we wanted from this deal
3/ Normally, we aren’t that direct. Example from startup/VC land:
Founders leave VC meetings thinking that every VC will invest, but they rarely do.
Worse over, the founders don’t know what they need to do in order to be fundable.
4/ So why should you ask the magic Q?
To get clarity.
You want to know where you stand, and what it takes to get what you want in a way that also gets them what they want.
It also holds them (mentally) accountable once the thing they need becomes true.
5/ Staying in the context of soliciting investors, the question is “what would need to be true for you to want to invest (or partner with us on this journey, etc)?”
Multiple responses to this question are likely to deliver a positive result.
