Pricing your digital services can be challenging, confusing and complex. You can get so lost in the strategies, structures, and systems that you want to slap a barcode on it and call it a day. I mean how do you price digital products and services? There isn’t some manufacturing plant with fixed overhead costs and shipping to factor in.
This is a service and a hard one at that. There’s a reason not just anyone can successfully build a website or run Google Adwords, and that’s because it’s complex and takes experience. So how do you ensure that you get paid accordingly?
Enter the fear of charging too much. I mean you’re fairly new to the game so how do you justify a high sticker price? What if you scare people off? You certainly can’t afford to lose business when every dollar counts.
By using the four strategies below you’ll build so much value in your services that justifying your higher prices will be easy. This means you’ll be getting paid more for the work you’re already doing. Once you get your value proposition nailed down you’ll be getting more clients that are paying higher prices. Your profit margins will increase and so will your sales. Implement these strategies today and see your sales increase tomorrow.
1. Increase Demand
That’s right, head over to the demand dial and turn it on high! Easy Peasy! Except….. It’s not. Yet you can control demand or at least the perception of it. If you’re selling a webinar you can have “One seat left.” Your online program can be “Application Only.” Or your services can have a “Waiting List.” The truth is people will want to work with your agency if they think other people are working with your agency, so make them think that. An added bonus to having “waiting lists” or “application only” services, you get to pick and choose who you want to work with. That way you can avoid those frustrating clients who ask for too much and pay too little.
People will want to work with your agency if they think other people are working with your agency
2. Provide Clarity
Providing clarity for clients and prospects will help break down barriers. They’ll know exactly what you stand for and what to expect from your agency. This makes your agency seem more trustworthy, more reliable, and like the safer option. They’ll be more apt to make a purchase if they know what they’re getting and who they’re getting it from.
Clarity is important not just during the sales process, but also throughout the entire project. Being open and honest is one way to creating raving fans for your agency, and you want your clients to be so thrilled with your services that they’re singing your praises from the rooftops.
The bigger the client you’re going after, the more important this will be in driving value. When it gets to the proposal process, give them specific ROI projections for what could happen if they start working with your agency. You can grow their list by XXXX, lower lead-to-close time by XX%. Whatever you do, run the numbers and WOW them. Once they see how good their future could look, they’d be crazy not to hire your agency. Just ensure that you deliver on those numbers because you’re setting the bar high.
(RELATED: Access your free proposal template.)
4. Perceived Value
When tested against other phones, the iPhone rarely comes in first place. It doesn’t have the longest battery life, it doesn’t have the best camera, the most functionality, or longest lifespan. Yet, Apple completely owns the smartphone market. Why is that? People perceive iPhones to be the most valuable, even though they are proven time and time again that they’re not.
So, position your agency as the most valuable. Have world class proposals, videos, presentations, testimonials, and social proof. Drive value every way you can. Time, People and other “national publications” are actually regional publications that you can run advertisements in. Imagine being able to put “As seen in Time Magazine” on your website. Do you think this would increase your value proposition? Absolutely.
Pricing your services incorrectly is a sure fire way to stunt your agency’s growth. However, raising them can be frightening and fill you with uncertainty. At the end of the day, it’s a move you must make if you want to remain competitive. You may lose some current clients in the process, but the higher profit margins from the other ones will compensate for that. Plus, then you’ll have the service bandwidth to start taking on those higher paying clients.
To justify a higher price tag you must deliver value every step along the way
To justify a higher price tag you must deliver value every step along the way, from the first lead magnet to the follow-up survey at the end of the project. Clients and prospects need to understand how valuable your agency is. If you drive value properly they should feel like they’re getting your services for a steal, even if you’re not the cheapest option out there. Remember, your agency is world class, not a low-cost leader, so charge and produce accordingly. Increase your prices and increase your sales, who would have imagined those two go hand in hand? Go get ‘em!
(NOTE: If you want to learn the specific ways you can double, or even triple your prices in the next 90 days, check out our online training for Pricing. This course contains 15 Ways to Build Market Value, 3 Steps to Expedite Your Agency’s Maturity, and The 6 Different Types of Pricing Models for agencies like yours.)