Pricing Strategies For Your Business 💰 

So, today we’re tackling one of the things that always remains a mystery to most people and one goes about price setting your business services.

Now, pricing your services is one of the biggest business and marketing agency challenges. Pricing is never done because it continually evolves with the market, your business needs, your team dynamic, and most importantly your experience!

Aligning your agency's pricing with value and evolving your pricing as your agency grows are key to determining the most suitable pricing structure for any agency. You’re not exactly going to charge £50 for a photo shoot for example when you’ve got 5/10+ years of experience in creating high-end imagery that converts revenue for your clients now, are you 😏

There are multiple ways you can price your marketing: an hourly rate for time and materials, a fixed bid that bundles scopes together, a retainer model where you're on call, and value-based pricing. Or, one of my most effective methods is asking the clients for their budget, then building an offer to give them the most value for their chosen budget.

Align Your Pricing With Your Value Proposition 💰

One of the keys to pricing your services is understanding the VALUE you provide. Yes! You heard me know your self-worth, and how great your services are from previous results! Your pricing needs to align with your capabilities and expertise. When you first start your agency, price your services based on research of your competitors' rates and an honest assessment of what you can reliably deliver.

Make certain your pricing matches the value you now provide, not the rates your competitors charge. It’s all well and good to “dive in the deep end” but you have to charge according to your experience! Then, over time as your agency's capabilities expand, you can raise your prices accordingly. 

This approach allows you to set fair baseline pricing while staying within your expertise.

Compare Your Prices Against Your Competitors 👥

An important pricing strategy is positioning against your competitors. As a business or agency, you are up against three different types of competitors:

• Direct competitors: Agencies that are similar to yours.

• Indirect competitors: Agencies that differ slightly from yours but offer similar services. 

• Replacement competitors: In-house teams. 

Comparing your costs to direct and indirect competitors is easy enough, but competing with in-house teams is a bit more complicated. For example, comparing the cost of your team of four against the cost of one full-time in-house marketing employee will make your value proposition tangible to potential clients. 

Your goal is to make your pricing relatable based on budgets your potential clients already understand. Then, as previously stated above, align with your experience.

Develop Good, Better, And Best Service Packages 📦

Your baseline “good” package should provide solid value without embarrassing yourself. You want to be careful not to cheapen your services so much that you won't be able to execute them for your clients without making costs incur to yourself.

The middle “better” package is where most buyers will land, so make it the best value. Start in increments of £1,000 or a 10–20% increase of your baseline price. Add high-value items to this tier, like additional reporting or competitor data, or even something that is tailored to their needs that’ll maximize value 📈

Finally, the premium “best” package should include special services buyers will covet. You can go exponentially—an anchor price—to show your potential customers what they are missing in the other two tiers. Or, you can show them accelerated capabilities, and BETTER YET show them previous success or even proven results as a converter. Use something you can sell and repeat that shows increases in volumes, platforms, or additional people and resources, for example.

This tiered approach makes buying easier for your clients and allows you to showcase the range of your capabilities to the price points set. In my opinion and what I was trained by one of the biggest companies in the world (Samsung) to train other people to do, is to give people the option to see what they are missing in the higher price points and make their choice based on what they think is best. You can choose to believe me or not here, but I wasn’t the top UK trainer for Samsung in TV/AV for no reason…NEVER up-sell!

ALWAYS down-sell. Why? Well, without waffling on I’ll keep it simple. You show anyone the top SUPER amazing features and benefits of something, and then show them the Wish cheap version 😂 Are they going to go for it? The answer is no! As long as it’s pitched correctly and showcased in the best format why would anyone want to settle for less? Think of it this way, super simple without semantics. If I told you I could get you a million pounds, or, I can make you a thousand pounds. What is more realistic of a choice 🤷🏻‍♂️

Adjust Your Pricing As Your Agency Evolves 📈

An effective pricing strategy must evolve as your agency grows. You shouldn't change your prices too drastically or frequently, as it creates confusion for your clients. Plus, it could even put you out of your clients reach! Unless you’re ready and got pipeline clients willing to pay bigger budgets, just keep that in mind 💭

When discussing changes in your pricing, it's important to involve your team members from different departments like finance, operations, and services. This ensures your pricing aligns with your business or agency's resources and market conditions. If you are a freelancer, you want to keep in mind you won’t always be working on projects alone. Plus, you might want to increase prices to expand business to hire new staff. While revenue projections in professional services can be tricky, regular evaluations can help you incrementally adjust pricing to stay current!

🎁 BONUS PRESENT 🎁

If you’re a photographer or business owner, I have a detailed pricing structure Xcel Sheet that will exactly calulate your next photoshoot, massive video production or just your next project. I’m only giving this this way to the first THREE people who email me back asking for it.

You can completly tailor this sheet to your business or your project, you just change the cells to what your services or even products are and it automatically calulates it for you. It even has buffers, tax deductions and MUCH more.

Interested 🤷🏻‍♂️

Q&A

• So, are you ready to harness these tips on pricing for your business or agency?

• Do you have any pain points I can help you with smoothing out?

• What impact do you think utilizing these tips will have for your business?

Whenever you’re ready, here’s how I can help you:

1. Book a {10 MINUTE} Business Power Call with me, to arrange working together to make your social media videos stand out online as I tweak your approach, and analyse how to improve your current video, business strategy or marketing.

2. Don’t have time to create great videos yourself? Focus on your business, whilst we focus on creating the videos that you’ve always dreamed of. Get in touch to find out more.

Until next Friday, love to you all!

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