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Value-Based Pricing for Freelancers
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Brennan Dunn
July 11, 2013
Business
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Value-Based Pricing for Freelancers
Brennan Dunn
July 11, 2013
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Transcript
Value-Based Pricing How to make your clients happier by charging
more.
None
None
None
$100
$100
$100
$100 $10
None
None
None
None
None
None
None
None
None
None
Why should I pay you $150 an hour to write
Ruby when that other guy will do it for $15?
None
RACE TO THE BOTTOM
RACE TO THE BOTTOM COMMODITIZATION
RACE TO THE BOTTOM COMMODITIZATION MARKET RATES
VALUE-BASED PRICING TO THE RESCUE!
A Paradigm Shift
A Paradigm Shift ★ You are no longer a Ruby
developer
A Paradigm Shift ★ You are no longer a Ruby
developer ★ No one cares about Ruby or Rails or whatever you take pride in
A Paradigm Shift ★ You are no longer a Ruby
developer ★ No one cares about Ruby or Rails or whatever you take pride in ★ Clients want to know: "What's in it for me?"
Take The Spotlight Off Yourself
Take The Spotlight Off Yourself ★ Reverse engineering salaries
Take The Spotlight Off Yourself ★ Reverse engineering salaries ★
Figuring out what your peers charge
Take The Spotlight Off Yourself ★ Reverse engineering salaries ★
Figuring out what your peers charge ★ It’s all about me, me, me
And Start Understanding Your Clients
And Start Understanding Your Clients ★ Are they losing money?
Are they missing out on untapped revenue?
And Start Understanding Your Clients ★ Are they losing money?
Are they missing out on untapped revenue? ★ How can you increase core KPIs?
And Start Understanding Your Clients ★ Are they losing money?
Are they missing out on untapped revenue? ★ How can you increase core KPIs? ★ How can you help them fix their pains?
Focus On The Future
Focus On The Future ★ Most of us bill. We
look to the past.
Focus On The Future ★ Most of us bill. We
look to the past. ★ ...What can this project do for my client?
Focus On The Future ★ Most of us bill. We
look to the past. ★ ...What can this project do for my client? ★ How will this improve what matters?
Focus On The Future ★ Most of us bill. We
look to the past. ★ ...What can this project do for my client? ★ How will this improve what matters? ★ How can I further improve their KPIs?
Tech Is A Means To An End
Tech Is A Means To An End ★ No one
is paying you to write code
Tech Is A Means To An End ★ No one
is paying you to write code ★ People pay you to make more money
Tech Is A Means To An End ★ No one
is paying you to write code ★ People pay you to make more money ★ EXPLOIT THIS!!!
Be An Investment, Not An Expense
Be An Investment, Not An Expense ★ Most don’t recognize
the value we produce
Be An Investment, Not An Expense ★ Most don’t recognize
the value we produce ★ We focus on the deliverables. The code. The features. The workflows.
Be An Investment, Not An Expense ★ Most don’t recognize
the value we produce ★ We focus on the deliverables. The code. The features. The workflows. ★ None of this matters.
Level Up Your Business Skills
Level Up Your Business Skills ★ ROI, TCO, KPIs, utilization,
profitability, overhead
Level Up Your Business Skills ★ ROI, TCO, KPIs, utilization,
profitability, overhead ★ Make sure every meeting, every proposal, every LoC aims to benefit a particular KPI that matters to your clients.
“Brennan, You’re Throwing Out A Lot Of Jargon!”
“Brennan, You’re Throwing Out A Lot Of Jargon!” ★ Yes
I am.
“Brennan, You’re Throwing Out A Lot Of Jargon!” ★ Yes
I am. ★ The $10 coder overseas doesn’t use this jargon.
“Brennan, You’re Throwing Out A Lot Of Jargon!” ★ Yes
I am. ★ The $10 coder overseas doesn’t use this jargon. ★ And this is how you’re going to get ahead.
And now...
And now... THE SECRET TO GETTING PAID MORE MONEY
Value based pricing focuses on the destination, not the road.
When our focus is correct, the risk that we'll fail
to solve the business problem(s) at hand is lower.
And when we can clearly communicate that we know what's
at stake and we know what that goal is, we’re perceived as low risk.
Clients want to hire someone who knows their business, its
needs, and has the technical knowhow to get from today to tomorrow OVER the person who is merely adept at coding.
If a client think there's a 50% chance that a
project will fail (e.g. a website redesign won't result in more customers) and is quoted $50k, the true cost is $75k after self-insuring for failure.
Reduce perceived risk by aiming for the right target and
helping your client get to that target faster and more efficiently, and you'll be able to charge more.
Value-based pricing means focusing on the client, not yourself, and
pricing based on the expected outcome of a successful project completion via establishing a low risk profile.
Ê> > > 2>Ê+"(>. Over 3,000 freelancers are
charging more. Are you? doubleyourfreelancingrate.com use coupon RUBY for $10 off