Tiered pricing makes it easier to buy your services. It works by bundling services and deliverables into distinct packages at set price points. Using tiered pricing, you can take advantage of powerful behavioral heuristics like decision fatigue and anchoring to shape buying decisions and increase revenue and client satisfaction.
In the minds of many firms, deliverables are what it’s all about. However, what matters to clients usually takes place long before and after an agency deploys their code or emails their designs. Use the Smiling Curve to uncover that value.
If you have stumbled upon our website, you either know what value-based pricing is or you are curious. As with most things worth learning about, there is a lot on the subject, so this post is intended to serve as an introduction with references to further reading. The topic is long and wide, so we can't cover it all at once.
When you use hourly pricing or price for effort, your pricing reflects the time, effort, and work that went into producing the service or product. But what does that mean, and what are the consequences of billing for effort?
I admit it! We love value-based pricing and for many good reasons. But value-based pricing isn’t the only way to price your services. Choosing a pricing strategy can feel daunting. In this series, we’ll take a look at some common pricing strategies used by agencies, consultants, and freelancers. We will list their pros and cons to help you choose the best strategy for you.
Agencies with high pricing power can raise their prices without their clients raising their eyebrows, if the circumstances are right. By leveraging this fact well, you can sell rather trivial "grunt work" as highly critical "nuclear event work," for which price isn't an issue.