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The #1 pricing mistake you must avoid

Robbie writes in, “Marcus, my client’s budget is too small for us to do what’s needed for them.  Just this week I took on a client with a $2,500/mo marketing budget, but I already know that I’ll be giving away time to get the results they want.  In the end, I don’t really make money, but at least the client’s happy.  How can I find clients with bigger budgets?”

Robbie, you’re thinking about it wrong.  You’re pricing current philosophy seems to be “Get them to sign.”  With this approach, your goal is to get the client to buy from you.  You are doing that by lowering the price until it seems like you’re a good deal.

Then after you get the work, you have to face the stark reality of what you already knew: the budget wasn’t big enough for you to do your best work.  
To survive, you’re going to have to cut corners, outsource parts of it, hire cheaper labor or give time away.  Lose-lose-lose.

The “Get them to sign” pricing philosophy is lunacy.  It puts your focus on getting a contract signed at all costs.  Crazy town!!!

Also, it embraces the fallacy that your customer wants the lowest price.  This is fear-driven BS.


What’s the alternative?

The alternative is to price your work to “Do great work.”  

A “Do great work” approach asks the questions:
“What will it take to blow the client’s socks off?  To deliver incredible results.  To make this client insanely happy?  To hold their hand the entire project?  To make them feel like they are the most important client I have?  And all of this while making good money, enjoying the project, and rewarding your staff for their hard work?”

That’s the “Do Great Work” pricing approach.  It’s not about pricing to get them to sign a contract; it’s about pricing to deliver great results.

Which mindset do you have?

About Marcus Blankenship

Where other technical coaches focus on process or tools, I focus on the human aspects of your Programmer to Manager transition. I help you hire the right people, create the right culture, and setup the right process which achieves your goals. Managing your team isn't something you learned in college. In fact, my clients often tell me "I never prepared for this role, I always focused on doing the work". If you're ready to improve your leadership, process and team, find out how I can help you.

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