MBA65 Guest Teacher: Brennan Dunn – How To Price Your Services
Nov 3, 2014
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Brennan Dunn, an expert in pricing services who earns over $20,000 per client, shares his invaluable insights on how to effectively price your offerings. He emphasizes the importance of aligning your prices with the value provided rather than just labor costs. Brennan reveals a four-step process for determining pricing based on client motivations and needs. Additionally, he discusses strategic pricing methods, including creating package options and positioning services as investments, ultimately enhancing client relationships.
Understanding the true value you provide allows for pricing based on client outcomes rather than just hourly rates.
Presenting tailored offers with multiple packages helps clients perceive your services as valuable investments instead of mere expenses.
Deep dives
Understanding Client Value
To effectively price services like consulting, it is essential to understand the true value you bring to clients. Rather than relying on common industry rates or calculators, this method emphasizes a deeper understanding through Socratic questioning. By engaging clients about the underlying motivations for their projects, you can identify the core problems they face and the cost implications of these issues. This approach reveals that clients do not just seek a service; they desire an improved future, making it crucial to focus on the outcomes rather than the service itself.
Anchoring Pricing to Financial Upsides
A strategic approach to pricing involves anchoring costs against the financial upside of solving clients' problems. By quantifying potential benefits, such as increased revenue from new leads generated through your services, you can contextualize your pricing. For example, one freelancer successfully conveyed his $15,000 website development price to a psychiatric clinic by illustrating how even one new lead, valued at $30,000, justified his fee. This method turns pricing from a mere number into an investment for clients, aligning your costs with their projected gains.
Creating Tailored Offers
The final step in the pricing process is developing tailored offers that bridge the gap between the client's current situation and their desired outcome. By presenting multiple packages, you not only position yourself favorably against competitors but also allow clients to see the value in premium options. This tactic resonates with buyers accustomed to seeing comparative pricing, guiding them towards understanding the worth of your services. Ultimately, offering clients a choice reinforces the perception of your services as valuable investments rather than just expenses.
In this guest teacher episode, Brennan Dunn teaches you how to price your services. This is an incredibly powerful lesson on how to leverage what you actually offer your clients in your prices, rather than basing your prices solely on your labor. Brennan is an expert at this, earning over $20,000 a client. Press play at the top of the page and thank me later.