Captain’s log, stardate 20211003
Implementing Value Pricing
Understanding value pricing is not difficult.
Implementing value pricing into an existing business can be extremely difficult.
How difficult it is to implement value pricing depends on the structure of your existing business.
Over the years, I’ve received several frequently asked questions from business owners having a hard time implementing value pricing.
- How do I figure out the maximum amount my clients would pay?
- How do I convince my clients that my services are valuable?
- Once I calculate my prices how do I present them to my client?
- What should I say if a prospect asks me how I calculated the prices in my proposal?
- How should I explain value pricing to my clients?
- What should I say to a prospect if my value prices are significantly higher than the prices they got from my competition?
- What things can I add to a proposal to increase the perceived value and justify premium prices?
- What should my payment terms be on a value priced project?
- How do I manage a value priced project so that the scope doesn’t creep out of control?
- What if my project doesn’t deliver the value that I expected it would?
- How do I convert my hourly billing clients to value pricing clients?
- How do I continue to make payroll while switching over to value pricing?
- How do I know my value priced projects are profitable if I’m paying my employees or contractors hourly?
Do any of these questions stand out as the most interesting to you?
I’ll tackle the most popular ones in future messages.