A Pricing Mistake We Can All Learn From
In this episode of The Agency Accelerator Podcast, I revisit the topic of pricing. So often agencies focus early sales conversations on time to complete a task or the output of a project (e.g., a website or some copy) rather than the outcome the client is looking for (e.g., improved online presence)
This episode was inspired by a recent story a client shared with me so I share that with you in this episode.
[01:37] Copywriter anecdote; how NOT to deal with a client when you feel you have gone the extra mile?
I share the story of a client who tasked a copywriter to create a new report. They faced an impasse because the copywriter invested an additional ½ day of work from the original 3 days of what was agreed upon. She thought she was going the extra mile by not charging for this half-day whilst the client was disappointed with the quality of the copy!
[04:11] Supplier vs partnership relationships
Starting a relationship by focusing on the outcome of what the client is looking for will create a partnership relationship. Often the supplier might be focused on selling time while the client is focused on the quality of the work, no matter how long it takes to complete. Entering the relationship with a clear vision can then help you price accordingly.
[04:55] The 4 things we sell to our clients:
Inputs, outputs, outcomes, and the long-term impact we have on our client; are the four aspects that must be considered to form a lasting, happy relationship with a client.
[06:23] Long term relationships with clients
Creating long-term relationships with clients means having transparency from the beginning. Have a conversation on what the client is expecting and remember that you are not selling time to the client, you are selling outcomes.
[08:50] Value selling and selling on outcomes
Whilst you need to sell outcomes to clients you still need to manage capacity internally and that means measuring time and efficiency.
[11:05] Why value pricing and value selling is important
A simple message: Whether the time of a procedure takes 30 minutes or 3 hours, the value is contingent on the outcome, not the amount of time it takes to complete.
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