Pricing strategy can be a tricky challenge for any business. There’s many ways you can go about this so allow me to share some insight on how we did it. Hopefully you’ll find it useful for your own one business.
First let’s get something clear – there’s too much B.S floating around the internet and in seminars about choosing some magical number that you want to get paid and then wondering why you can’t get clients.
I’ve fallen for this trap myself, and I’ve seen others going through it in groups that I participate in online.
You don’t have a business until you have a willing buyer, and that means they actually hand over some cold hard cash (or wire it to you digitally).You don’t have a business until you have a willing buyer, who's paying you cash. Click To Tweet
So that we’re on the same page, we offer to create up to 4 high quality blog posts per month for a fixed monthly fee.
How we worked our pricing
1. Tested a beta price to get initial clients onboard and during first 3 months got their feedback to improve the service. Our first client is still with us today 6 months later.
2. When we realised that we would not be able to bring on clients, and writers, at the original pricing we then increased the pricing to make it more sustainable. (Our original client is still on the original pricing as they’ve been integral to our growth and we’re rewarding them for their loyalty & belief in us)
3. We then tried doubling our price but we got feedback on this pricing from a few people who fit our ideal buyer profile (6-figure+ online entrepreneurs) who told us it’s too expensive. We were pricing ourselves out of the market.
4. We then settled on our current pricing ($US 499/mo) which covers our cost of delivering the service, and still allows us to be able to provide great value to our clients.
Key lesson here: the market will dictate your pricing. Always.
Validate by asking your target clients what they are willing to pay for, but don’t just ask the question – ask them to hand over the money in exchange for the service (or product).Key pricing lesson: the market will dictate your pricing. Always. Click To Tweet
- Invisible profit: How to build a business where others won’t
- Why Build a Productized Service (Instead of Consulting)?
- The anti-agency – the ways in which a productized service is not an agency
What’s been your experience with pricing your product or service? Share below.