David shared that he was sending an RFP to a client:
@Sean McCabe: Thanks. First, I need to send this RFP and see the client’s reaction.
David Lindop just hit send. I'll update you on his reaction... like a window into a real life transition of hourly to project costings... should be insightful.
Minutes later, David got a reply from the client:
Got a very quick response from the client proposal…
That feels a bit steep to me. I will see if I can get the account infrastructure and messaging templates a bit further along here and then we can review with you.
“That feels a bit steep to me.”
It did to David—and it was starting to hurt. He’d heard things like this before (maybe you have as well), and he’s growing tired of it.
@Sean McCabe: It’s painful growing time.
- Previously I wasn’t aware of the hourly rate problem, I only knew I was always on the edge of my capacity and exhausted
- Now I know the source of the problem, but I don’t have the knowledge / confidence / systems / tools to transition
As we’ve just seen, I’ve lost business today because I didn’t discuss money early enough to avoid sticker shock. I need to process this and decide what to learn from the experience.
David, I just want to say this is a HUGE first step.
- Recognizing this as a burning problem is big.
- Talking about this openly (even in a private setting) is brave and I want to commend you. Your willingness to share is not only what will help you grow, but it will:
- Encourage others.
- Help make them more aware of their problem.
- Make them more likely to speak up.
- Increase your chances of getting help (because no one here can read minds).
You’re starting to see why Justin Michael and I saw this as such a pressing issue—enough to spend two years developing a system that solved every single one of these problems.
Virtually everyone we know does not have a professional pricing process. They are guessing every single time.
🚫 Pricing is not, and never should be, a guessing game!
Every time it comes to the point where you need to write a proposal, you’re thinking:
It takes HOURS (or even days) to come up with a proposal and even then, you’re not 100% sure the client will think it’s a fair price!
Unless you have several years to spend developing an entire system for doing client work, you’re never going to get to a point where you have a bullet-proof process. It’s always going to be guessing.
Guessing is no good when you just want to focus on doing great work.
You need a system that works for you every single time and has your clients thanking you for charging them what you do.
You don’t try to build your own office chair, you buy a Herman Miller Aeron Chair! Why? Because someone else dedicated their entire life to the craft of making beautifully functional chairs. You just want to do good work!
You can either spend your life on the process, or trust someone else who’s passionate about the process itself and follow a proven system.
You’re passionate about your work. You don’t fragment or split your focus by spending your time building your own office chairs out of wood scraps—with bumps and knots digging into your back! You buy a chair made by a professional and you never have to think about it again or worry about it screwing up your back.
Think about it: you almost never think about the chair you’re sitting in. That speaks to its integrity!
How often do you think about pricing? I bet you think about it a lot—and it’s a real pain.
Pricing is not something you should be thinking about. Just like you shouldn’t be thinking about RAM allocation inside your computer. You should be following a process that enables you to focus on doing your best work!
Stop cobbling together a broken system for doing client work that leaves you with problems, bad clients, broken processes, headaches, and wasted time.
Not to mention the feeling that you’re not valuable when the client says “it’s a bit too steep.”
Think about how the feeling of not being valuable affects your morale, mindset, and quality of life (let alone your work!).
Value-Based Pricing Is a SYSTEM.
It’s not a course.
I mean yes, part of it does come in the form of educational materials that are in written and video form, but this is a complete system to doing client work.
Every client problem you can possibly conceive of—we’ve thought of it and preempted it. Every single one.
The program includes THREE custom-developed pricing calculators. If Value-Based Pricing were simpler such that you could do it with fewer than THREE custom-developed pricing calculators, you can be sure we would have simplified it even further! That’s what Justin Michael and I all about: simplifying complex problems.
The very simplest form Value-Based Pricing can take is one that requires the use of THREE custom-developed pricing calculators.
We should know: we spent years developing this system.
This is why anyone saying they do Value-Based Pricing without going through the program is kidding themselves. They’re still guessing! (I’ll prove this to you in a minute.)
Justin and I would spend three hours on a call just to come up with the perfect, single-sentence response to a client question. You know the one:
“Okay but really though, what do you charge? Just give me a ballpark!”
Ugh. Isn’t that the worst? What in the world do you say? How do you respond?
When will you have time to spend three hours coming up with a single-sentence response that gets the client back on track, instills trust, convinces them you’re the right person, positions yourself as an investment, and prevents them from talking about price again?
We have a marketing problem here at seanwes (don’t worry, it’s not your problem). That problem is you think you’re doing Value-Based Pricing right now.
How to Know With Certainty You’re Doing Value-Based Pricing
Here’s the litmus test:
Value-Based Pricing is based on real world factors and numbers. It’s pure math and logic. There’s zero guesswork involved.
- Are you 100% certain the price you quote is fair to you?
- Are you 100% certain the price you quote is fair to your client?
- Are you 100% certain the price you quote is a complete no-brainer to your client and they will THANK you for it?
- Is everyone happy with the price every time? (Not some of the time or most of the time.)
- Are you always working with good clients and never working with bad clients ever?
- Are you always following your process and never dealing with a client who tries to compromise your process?
- Are you never working late?
- Are you never making arbitrary or unnecessary changes?
- Are you always using your contract and never signing your client’s contract?
If the answer is “no” to ANY of these questions, you’re not doing Value-Based Pricing.
Value-Based Pricing guarantees your answer will be “YES!” to all of these questions every single time.
You need a system. Just like you need an office chair that is good for your back.
You can either spend years of your life learning to make the perfect chair or you can buy one from people who have dedicated their life to the craft.
We are passionate about the process. We geek out about it, we spent hours, months, and years developing a bullet-proof system to doing client work and pricing professional services.
We have solved every client problem. Imagine every issue you’ve faced with clients that makes your life a living nightmare—gone.
That’s not something we say lightly. It’s something we worked on intently for years to solve.
We don’t want it to be a guessing game for you.
You DESERVE for it not to be a guessing game.
Let us help you do what you do best: focus on doing great work for your clients.
- You will make more money.
- Your clients will finally understand the value of your work (you won’t have to convince them).
- You will actually enjoy your work again.
We think that’s something worth investing in.