Why now? Why not 6-months ago? Why not 6-months from now?.What makes you unique? What makes you different? Why you instead of another consultant?.Are you a domain expert that understands the project in a deeply intimate fashion? Were you referred to the client by a trusted advisor? Did they wake up one morning and shout out “Get me Kai Davis!”īy asking your client these questions, you begin to understand your personal contribution to the project. These questions assess your personal value to the project. Why is this being handled in this manner? Is there some aspect that's key at this moment?.Why now? Is the timing particularly urgent or sensitive?.Why me? Can any consultant do this, or do I have special attributes?.There’s many non-financial reasons that a client may want to work with you, all of which play into the value they’re receiving from this project.Īt the core of value based pricing, you’re having a conversation with the client to answer three key questions: That’s the fun part about Value Based Pricing - understanding your client’s business.Īt a high level, we want to think beyond a strict ‘Return on Investment’.
Wait - but how do I know what the value will be to the client? The key thing to keep in mind? Value > Price > Cost.Īs long as the value you’re delivering to the client exceeds the price of the project and as long as the price you’re charging for the project exceeds your cost, you’re winning. If you’re charging $5,000 for a project and it costs you $1,500 to fulfill the project, your profit is $3,500, giving you a 233% Return on Investment. Likewise, for you as a consultant, your profit is the difference between ‘Price’ and ‘Cost’. The client profited by $5,000, giving them a 100% Return on Investment. By investing $5,000 in your services (the price) they gained $10,000 in value (the value).
Value based pricing in online sales how to#
My colleague Jonathan Stark has a fabulous insight into how to think about this Value Based Pricing helps you sit on the same side of the table as the client, focusing on the value that the project can deliver, rather than worrying about the Today, we’re going to learn the how behind exploring value based pricing options with your client, the how of positioning yourself as a trusted advisor to their business, and the what of specific questions to ask.
Over the last year I’ve migrated my consulting business from hourly work to a productized consulting and value based pricing model. When you’re first exploring value based pricing, it’s easy for you to get push back from a client: “I don’t want to tell you about my business, I just want a quote. When you’re starting to explore value based pricing, one struggle is getting the client to talk to you about their business: What are their goals and challenges? How do they want to grow? How can you support that growth?
0 kommentar(er)
