Pricing Curves

These are the pricing curves I advocate for setting prices on project proposals:

“Goldilocks” Pricing

Formula: 1x, 2.2x, 5x. Drives the buyer to option 2. More risk/reward. Use when you don’t really care whether you get the sale.

“Might As Well” Pricing (MAW)

Formula: 1x, 1.5x, 1.75x. Drives the buyer to option 3. Encourages the client to think something like: “Well, if we’re going to do option 1, then we might as well do option 2. And if we’re going to do option 2, we might as well do option 3.” Pretty safe/conservative. Use when you want to get the gig without leaving too much money on the table.

“Plus 85” Pricing

Formula: 1x (estimated) and 1.85x (fixed). Highlights the risk of an estimate vs a fixed price in the mind of the buyer. You'd say something like: “If we do this hourly, my guess is it’ll be at least $10,000. If that feels too risky, I’ll guarantee the work gets completed for $18,500, not a penny more.” Use if you’ve never done fixed bids before and you’re too nervous about jumping straight to value pricing.


P.S. Not sure how to structure your proposals? Download my FREE proposal template »