Pricing Fuck Ups. Ep20. Charge based on your time and inputs. NEVER give a fixed price (or any final price).

Approach

It was not on what I wanted, but on what they sold.

A Best Practice: Give An Estimate

I don’t work in their industry. I don’t even care if it’s 20, 100 or 599 units. Does it help me pass a level? Does it move me toward my goal? — This happened over and over with everyone I called/texted.

Their Goal

“I need to sell units. The more I sell, the longer they stay with me, the more money I make.” → It’s selfish and a disservice to the customer.

The Label: They’re Overpriced.

I felt they were overpriced because I didn’t know when I’d get to my goal. I just heard I needed to buy time (or “units”). The better they were in me learning faster/better, they were penalized. It was all about them.

The amount was not really the problem

If they qualified me to see I was a good fit, promised I’d get to a certain level in an approximate amount of time and gave a price, I would have considered it. → The focus would have turned ON ME and MY outcome. I might have thought of paying more even.

Lesson

Focus on what your clients want to get. Not on the things to deliver — a website, a roadmap, articles, copy, ads, songs, music, whatever. On the outcomes they’re after: reputation, image, better management, more profit, sales, etc.

Are you asking and probing for the desired outcome of your customers?

Read this post and more on my Typeshare Social Blog

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Rod Aparicio

Rod Aparicio

Strategy Designer for Indie Consulting Firms