The document discusses various topics related to pricing for services, including understanding business goals, factors that allow large consultancies to charge high prices, accurately accounting for the true cost of one's labor, developing pricing models, segmenting types of work tasks, common pricing methods, and aligning prices with social and political values. The presentation encourages further discussion on daily pricing and sustainability.
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Pricing Topics For Bar Camp La
1. Pricing Topics
for
BarCampLA
Brad Gilreath
FactorHub.com
@factorhub
2. What are your business
goals?
To achieve your goals your business must
be sustainable….in for the long haul
Why start a business if you have no intention
to stick with it
Pricing your services is a key success factor
Asking your potential clients for money
affects the ability to achieve your business
goals
3. Why can big consultancies
charge big bucks?
Expertise
Methodologies
Documentation
Diversification
Mitigate Risk
Insurance
Training
Sustainable Practices
4. True Cost of Your Labor
$0, zero, zilch
Time goes by - whether you work or not
Your value is totally subjective
Clients know this and use it against you
What about justifying your value with
transparent pricing?
5. Developing a Pricing Model
Understand the components of your services
Establish long and short term goals
Determine your level of customer care
What costs more to do? – Both real and
emotional cost
What is your ideal project?
6. Segment Your Time
How much time do you devote to categories
of work tasks?
Split the numbers between things you prefer
and things that you would rather avoid
Charge more for things you would rather
avoid
But how much more?
7. Pricing Methods
Cost Plus Pricing
Value Based Pricing
Factor Based Pricing
11. Social/Political Agenda
Pricing
Now versus Never Topics
Green
Socially responsible investing
Human Rights
The Freelance Economy
Free Speech
On-shoring vsOff-shoring
Privacy
Actor Activism
Gambling
Free Speech
A business owner has freedom
to set prices. Aligning price with
belief set helps you live by your
principles.
12. Daily Pricing
What does it take to be successful on a daily
basis?
Measure over time
13. Thanks – Let’s Further the
Discussion
Twitter.com/factorhub
Skype: factorhub
Otherwise setting up pricing on the web at
factorhub.com