Pricing Strategy and Planning For Agencies
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Transcript of Pricing Strategy and Planning For Agencies
Pricing Strategy and Planning
Pantheon.io
Agency and Community Success Manager at Pantheon.
[email protected]@mcdwayne on Twitter.
Some things I enjoy, aside from tech, are● Improv comedy and theater● Comic books● Karaoke!!!
Hi, I’m Dwayne
Pantheon.io 3
Pantheon Background

Pantheon is a platform for developers and agencies to quickly build, launch and run
sites in a sane and scalable way
Pantheon has over 400 signed agency partners + over 3000 agencies worldwide
using the tools
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What we’ve learned about agencies

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Surprise….
THERE IS NO MAGIC
‘ONE SIZE FITS ALL’
NUMBER FOR THIS!!!
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Outline
● How to uncover the right pricing strategy to ‘fund your life’.
● Articulating differentiation and focus on value instead of price.
● Choosing hourly vs fixed bid pricing based on the situation.
● When and how to bundle additional services like hosting, SEO and support services.
Fund Your Life
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How much to fund a life?
Think “Thriving” not “Subsistence”
VS
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Work - Life Balance
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No magic ball, but…
Expenses÷
Working Hours≈
Minimum Viable Hourly Rate
Special shout out to Heather Acton’s Financial Business Planning for Freelancers http://wordpress.tv/2015/05/08/heather-acton-financial-business-planning-for-freelancers/
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Example
https://docs.google.com/spreadsheets/d/1RZ-uyuywS06_JS8PO79QHi_Go3uWFhW8Kob4ysj9C2Q/edit
Value vs Price
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Secret of all sales...
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Secret of all sales

People spend $ on things they value
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How much is a project worth?
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What does a website cost?
A dream written down with a date becomes a goal.
A goal broken down into steps becomes a plan.
A plan backed by action makes your dreams come true.
– Greg S. Reid
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Sales Basics: Sales funnel

● Leads
● Qualified Leads
● Proposals
● Growth goal ($$$)
● Outreach and Networking
● Qualification
● Discovery
● Procurement
● Profit!!!
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Value Based Discovery

Some basic rules:● Ask open ended questions to guide the client
● Focus on the ‘Why’
● Resist talking about your value until you have enough information to match your value to what they want to accomplish
● Listen 75% of the time. Talk 25%
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Discovery process

VS
What about your value?
Proving your value to clients
Portfolio, Client Reviews, Case Studies
+Expert Content
Hourly vs fixed bid
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Poll time
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Every situation is different, but...
General rule of thumb I have heard:
● If the client has not defined scope of project- Hourly might be best.
● If the project has a specific, defined - scoped they will probably also have a
real budget. These require very tight boundaries
Bundling additional services like hosting, SEO and support services
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Sales Basics: Sales funnel

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Discovery is the time to ask:
● What do you expect to do for site updates?
● How will you react to SEO optimization evolutions?
● What frequency are you expecting me to check in with you?
● What do you expect me to do if the site goes down or gets
hacked?
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And do you even want to?
● Are you good at all these areas or should you make a referral?
● Are you set up to handle hosting or should you rely on a partner company?
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No matter what though….
DEFINED AND ENFORCED SCOPE IS CRITICAL!!!!
Scope creep is a killer
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“Yes, I can do that.”
Vs.
“Yes, I could do that, but only for a price...”
Never give away your time
Tips for new and small agencies
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Freelancer or Consultant?
Freelancer Does Not Sound
As Valuable As A Consultant
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Do’s and Don’ts
● Do - Trust your instincts.
● Don’t - Take a bad deal.
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Do’s and Don’ts
● Do - Fire bad clients.
● Don’t - Be afraid to ask for referrals.
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Do’s and Don’ts
● Do - Raise prices, at least annually.
● Don’t - Reduce your rates. Ever.
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Do’s and Don’ts
● Do - Give yourself regular raises.
● Don’t - Pay yourself last.
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Do’s and Don’ts
● Do - Plan regular vacations.
● Don’t - Work weekends ‘for free’.
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Do’s and Don’ts
● Do - Have a pet project to continually enable you to learn new skills.
● Don’t - Don’t let your pet project control you.
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What did we talk about?
● How to uncover the right pricing strategy to ‘fund your life’.
● Articulating differentiation and focus on value instead of price.
● Choosing hourly vs fixed bid pricing based on the situation.
● When and how to bundle additional services like hosting, SEO and support services.
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Further Reading/Listening

*MJHoffman - https://twitter.com/mjhoffman
*You Can't Teach a Kid to Ride a Bike at a SeminarBook by David H Sandler and John Hayes
*The Challenger Sale: Taking Control of the Customer Conversation - Book by Brent Adamson and Matthew Dixon
*Predictable Revenue - Predictablerevenue.com
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Agency and Community Success Manager
at Pantheon.
mcdwayne on Twitter.
Some things I enjoy, aside from tech, are
● Improv comedy and theater
● Comic books
● Karaoke!!!
Goodbye, I was Dwayne
Thanks