Very well explained. The first example you gave is indeed not easy to pull off and depending on how you communicatie you might end up losing the customer. I also think that it also depends on the country you live in when value pricing and some customers are looking for value and some are looking for the cheapest price, you just need to know the market conditions and where the company is at(as mentioned in the video) There are alot of saying I've heard online like don't price the project, price the client or the saying from Jay Z "you get what you negotiate for" in the end I believe that we should try as much as possible to position ourselves as a premium choice then the clients who approach us will percieve us as premium. Positioning ourselves as broad and general is just a race to the bottom. I still think that taking in account the project scope and the value you deliver you should price accordingly. And whatever we deliver should have a ln impact on the business. It is indeed as you say alot of designers are trying to bump their prices, but no significant value is being created. You should know what value you bring to the table that solve's a specific problem, that in turn adds value to the company so you can truly charge for value. I'm still learning... :) To your success Ed
So glad you said this. You can have that kind of value conversation if you're a full on marketing consultant / agency where you are directly affecting the top and bottom line revenue. But when you're only building the website, there's many other factors that affect the revenue that are seperate to your engagement with the client. So to take a straight off % of revenue doesn't work.
Very interesting! Thank you! Definitely, something I'm taking into account. Currently, have a client that pays for monthly maintenance does not see the value. So what I'm going is explaining to him that maintenance includes strategy, reporting, management and so much more. And I'm also trying to get it away from it being an hourly service and instead as a fixed price service.
I’m glad you mentioned location as a function of value too. I’m located in a relatively poor city and that means targeting more clients in the nonprofit sector for example.
Thanks for sharing this insights, just a small note: Diesel costs more not just because it's a premium brand, but the quality of the products compared to Zara are much more heigher.
Well Yeah! If you're going to do the same thing for me as the last guy and change pricing for that, but as a customized service, we're not doing the same thing from each client needs. Those needs are different from local mom & pop vs. regional company vs. world-wide brand, so I think adjusting price based upon their money is a bad thought process for us. It's about the details and complexity and scope which all lead to the value, and value is so often linked to dollars.
Well said Ron. There's a lot of variations when it comes to pricing, specially markets around the world. Lots of shallow guidance around the community these days so your video is refreshing to say the least.
I don't think that this is value pricing. It's branding. But there are fundamental differents. Value pricing is all about the real value you can provide with your service. And this value ist just different. It depends on the business and the client itself. You need to speak with the descision maker - otherwise it will get kind of unattainable to price by value. However I am not a pro. There might be some people who mastered value pricing. Or pricing for hight tickets. I thinks it's a really interesting way to calculate the money they are willing to pay for your service to solver their problem.
Value pricing is not really for freelancers because they are freelancers. If you reposition yourself as a company and brand then you might have an opportunity
"Pricing Creativity" is a very sophisticated book. I would not dismiss it so easily. Concepts which are discussed in it by Blair Enns are not easy to grasp but tottaly worth it. But Blair writes it for bigger creative firms than a firm of one. Maybe that is why solo practicioners find it hard to implement. Jonathan Stark has a very interesting alternative way of thinking about value pricing, tailored to solo operators (software developers mostly but it applies to designers very well) - much easier to implement. And yes - he advices against telling the client you are doing the value pricing. Long story but this post is sponsored by #askjonathan 😉
Spot on It has worked for so many others Worked for my mentor in Nigeria who just bagged 25k USD to create a website for a client because of value pricing
the way chris do does it is its prorated and if it does actually generate that the client is more than happy the pay the 10%.its like printing money. i believe you have to use a little bit of everything to truely value price.webflow makes it take much less time so its worth more,maybe your managing content...theres lots of reasons you could justify a rate and a percentage based on value. I believe its time the futur and flux get together again.they just made webflow thier main tool .
Hahahahaha Ran, are you referring to Chris Do's negotiation & sales techniques ? Your move now Chris :D This is going to be very instructive for sure! Thanks for your valuable insights guys !
Yea, all true. Like there are a couple of magic words you can say to avoid all the hard work of gaining the reputation of a reliable and skillful person.
![Stromae, Pomme - “Ma Meilleure Ennemie” (from Arcane Season 2) [Official Visualizer]](http://i.ytimg.com/vi/1F3OGIFnW1k/mqdefault.jpg)
"You're paying for my knowledge and experience in the industry, not for hours from my day."
Ron please tell us about all the books behind you
he's not from harry potter
Very well explained. The first example you gave is indeed not easy to pull off and depending on how you communicatie you might end up losing the customer.
I also think that it also depends on the country you live in when value pricing and some customers are looking for value and some are looking for the cheapest price, you just need to know the market conditions and where the company is at(as mentioned in the video)
There are alot of saying I've heard online like don't price the project, price the client or the saying from Jay Z "you get what you negotiate for" in the end I believe that we should try as much as possible to position ourselves as a premium choice then the clients who approach us will percieve us as premium. Positioning ourselves as broad and general is just a race to the bottom.
I still think that taking in account the project scope and the value you deliver you should price accordingly. And whatever we deliver should have a ln impact on the business. It is indeed as you say alot of designers are trying to bump their prices, but no significant value is being created.
You should know what value you bring to the table that solve's a specific problem, that in turn adds value to the company so you can truly charge for value. I'm still learning... :)
To your success
Ed
So glad you said this.
You can have that kind of value conversation if you're a full on marketing consultant / agency where you are directly affecting the top and bottom line revenue. But when you're only building the website, there's many other factors that affect the revenue that are seperate to your engagement with the client.
So to take a straight off % of revenue doesn't work.
Very interesting! Thank you! Definitely, something I'm taking into account. Currently, have a client that pays for monthly maintenance does not see the value. So what I'm going is explaining to him that maintenance includes strategy, reporting, management and so much more. And I'm also trying to get it away from it being an hourly service and instead as a fixed price service.
I’m glad you mentioned location as a function of value too. I’m located in a relatively poor city and that means targeting more clients in the nonprofit sector for example.
Thanks for sharing this insights, just a small note: Diesel costs more not just because it's a premium brand, but the quality of the products compared to Zara are much more heigher.
Well Yeah! If you're going to do the same thing for me as the last guy and change pricing for that, but as a customized service, we're not doing the same thing from each client needs. Those needs are different from local mom & pop vs. regional company vs. world-wide brand, so I think adjusting price based upon their money is a bad thought process for us. It's about the details and complexity and scope which all lead to the value, and value is so often linked to dollars.
Well said Ron. There's a lot of variations when it comes to pricing, specially markets around the world. Lots of shallow guidance around the community these days so your video is refreshing to say the least.
You really did justice to this topic. Thank you.❤
Ran, are you familiar with what Jonathan Stark is teaching on value pricing to one man businesses? Might be interesting for you i think.
Great video, definitely some much needed perspective.
Man...Raaaan! Thanks for this! Everything is in my memobook now :D Great insights!
I don't think that this is value pricing. It's branding. But there are fundamental differents. Value pricing is all about the real value you can provide with your service. And this value ist just different. It depends on the business and the client itself. You need to speak with the descision maker - otherwise it will get kind of unattainable to price by value. However I am not a pro. There might be some people who mastered value pricing. Or pricing for hight tickets. I thinks it's a really interesting way to calculate the money they are willing to pay for your service to solver their problem.
Value pricing is not really for freelancers because they are freelancers. If you reposition yourself as a company and brand then you might have an opportunity
"Pricing Creativity" is a very sophisticated book. I would not dismiss it so easily. Concepts which are discussed in it by Blair Enns are not easy to grasp but tottaly worth it. But Blair writes it for bigger creative firms than a firm of one. Maybe that is why solo practicioners find it hard to implement. Jonathan Stark has a very interesting alternative way of thinking about value pricing, tailored to solo operators (software developers mostly but it applies to designers very well) - much easier to implement. And yes - he advices against telling the client you are doing the value pricing. Long story but this post is sponsored by #askjonathan 😉
Spot on
It has worked for so many others
Worked for my mentor in Nigeria who just bagged 25k USD to create a website for a client because of value pricing
yes, finally something more tangible on this topic where theoretically everything makes sense but ultimately most of the time is not applicable.
the way chris do does it is its prorated and if it does actually generate that the client is more than happy the pay the 10%.its like printing money. i believe you have to use a little bit of everything to truely value price.webflow makes it take much less time so its worth more,maybe your managing content...theres lots of reasons you could justify a rate and a percentage based on value. I believe its time the futur and flux get together again.they just made webflow thier main tool .
Really enjoyed this video - thank you
Thanks for this sir. Just a lil help, a luxury brand like Louis Vuitton would be a better example for the picture u were painting.
Hahahahaha Ran, are you referring to Chris Do's negotiation & sales techniques ? Your move now Chris :D This is going to be very instructive for sure! Thanks for your valuable insights guys !
I thought he paid for Chris Do's consultation?
Yea, all true. Like there are a couple of magic words you can say to avoid all the hard work of gaining the reputation of a reliable and skillful person.
" When you think about this, think about this" 8:30
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