March 30, 2019

Bass-ackwards pricing

Sent by Jonathan Stark on April 1st, 2019

Here’s how most people do it:

• Talk to potential client
• Find out what tasks client wants done
• Estimate how many hours it will take to complete the tasks
• Send a proposal with estimated price based on hours times rate

I think this is bass-ackwards.

Here’s how I do it:

• Talk to potential client
• Find out what business outcome the client is trying to achieve
• Estimate what the outcome is worth to the client
• Send a proposal with fixed prices based on my contribution to the outcome

TL;DR: If you’re thinking about scope in the sales interview, you’re doing it backwards.

Yours,

—J

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