Episode 3: Understanding Pricing

Hosted by  Brennan Dunn and  Eric Davis

Show Notes

• Fall in Virginia


• Writing fiction


• Pricing freelancing services


• Double your freelancing rate


• Reverse engineering your former salary


• Value based pricing, value delivered to clients


• Origins of your price


• How to decide on a price


• Cost plus – Cost of materials, cost of equipment, labor cost, and profit.


• Commodity pricing


• Lack of major expenses for freelancers when using a cost plus model


• Cost of living


• Market rate


• Battle between supply and demand


• High demand drive rates up, low demand drive rates down


• Also a commodity based strategy


• Economic substitutes


• Imperfect market


• Value based pricing (Consulting)


• Hired as an investment


• Goal is to make more money in the long run than the cost


• Emotional need


• Charge based on results


• Reflecting on the customer’s business and proposing a solution to help


• Using your skill (software, copywriting, etc) as a means to the end (business results)

Next Week

Interview with Nathan Barry. If you have any questions for him, post a comment below.

Resources

Brennan  -  Samson Meteor Mic,  Shush Mac app, and  The Strategy and Tactics of Pricing: A Guide to Growing More Profitably.

Eric  -  Million Dollar Consulting.

Action steps

Ask your next potential client questions that get at the business value of the project:

• Why are you looking for this project?


• What kind of financial outcomes are hoping a successful completion of this project will bring you?


• What would you consider a failed project?

Try to get to the root of why the client is coming to you and see what you can do so you can deliver a substantial amount of business value to them.

Transcript

We’re hoping to get a transcript later.