Are you a consultant?
Are you a coach?
Are you a service provider?
Maybe you do digital marketing but you're not quite
sure exactly, how do you price your service?
How do you package your skill and expertise
and offer that to the marketplace?
So today I'm gonna give you some tips.
They might be very, very different
from what you might be thinking.
In the marketplace, a lot of the people
when they want to price their service,
here's what most people do, alright,
especially when they're getting started.
They go into the marketplace and they're thinking,
let's see what other people are charging, right?
If I'm offering, let's say, a copywriting service,
well let's me look at what other people charge.
And they say people will charge this price
and there's some people that charge this price.
You see the range.
Well, you know, maybe I'll just charge
somewhere in the middle.
That's how, usually, people price their service.
That's not a very smart thing to do,
because right there, you are competing based on price
instead of competing based on value.
So what dictates your price is supply and demand.
So the first thing you need to look at is,
with what you do, is it a blue ocean,
meaning are you unique enough in the marketplace?
Are you uniquely qualified to solve this particular problem
for your prospects?
So, back then, when I was a copywriter,
I wasn't trying to be a copywriter for everybody.
I was trying to be a copywriter only for speakers,
trainers, and people who put together events.
The reason for that is because back in the day,
when they do an event, there's always a very high pay out.
It's a high ticket offer, right?
They do an event, it's possible
that they're selling two thousand,
three thousand dollar ticket, and they could have hundreds
of people in the room, and they need my marketing piece,
my direct mail letters, to put butts in seats,
to fill those seminar room.
So they know if only they pay me five thousand dollars,
eight thousand dollars, ten thousand dollars,
to create a campaign, in their mind,
oh well, if I sell two, three seats, it pays for Dan's fee.
It's easy to justify.
So you need to think about, when you price what you do,
what is the value that you're providing?
And how can you compare the value you're providing
with the service that you provide.
So you're thinking about just, well here's what I do,
you will not be able to charge a lot.
A much better way to look at this is,
okay, how can I package what I do,
so now, I'm selling a result.
I'm selling an outcome, or better yet,
I'm selling money at a discount.
What does it cost to prospect not to do business with me?
That's a very good question, write it down.
What does it cost to prospect not to do business with me?
Then, you can price accordingly.
I always say, people ask me, "Well Dan, people pay you
"$10,000 an hour for my time."
That is very true.
But why do people pay me $10,000 an hour for my time?
I always say I don't charge by the hour,
I charge by the years.
Meaning, they're not paying for that one hour of my time.
What they're paying, it's my experience.
What they could accomplish with that one hour,
it could help them make X amount of dollars,
maybe 100,000, 200,000 half a million, a million dollars,
with that one hour.
Or, it could save them from making that
half a million dollar, a million dollar,
two million dollar mistake.
Suddenly, when you combine that to $10,000,
now the $10,000 is a no-brainer now, isn't it?
Do you see what I'm talking about?
If not the time, it's what I bring to the time.
That's the big difference.
So you gotta think about what you do.
How can you package it?
If you can increase your value, the value of your offer,
stacking it up, meaning with your credentials,
if you have those, your credibility, if you have those,
your testimonials if you have those, your unique expertise,
if you have those, right?
Or some technology that you might have.
Maybe you have that.
Your team, that's all part of it too.
You can package it, now you can essentially deliver
the same service, but now the value is so much greater
in the marketplace.
So that's how you should price your service.
The last thing you want, is price it by hour.
I have the hour, because I want to demonstrate my value.
But the best is your price based on results.
You can create this much results for the client,
charge this.
Basically ten times.
If you can make them a million dollars,
why not charge them $100,00?
You can make them $100,000, why not charge them $10,000.
When you're selling money at a discount,
so you gotta ask yourself,
how can you sell money at a discount?
How can you create results?
How can you produce results?
Even if you can't directly, how can you get closer to that?
So you can create that contrast, then you can charge more
for what you do.