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Pricing strategy and planning DCCO

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Pricing strategy and planning DCCO

  1. 1. Pricing Strategy and Planning
  2. 2. Pantheon.io Agency and Community Success Manager at Pantheon. dwayne@pantheon.io @mcdwayne on Twitter. Some things I enjoy, aside from tech, are ● Improv comedy and theater ● Comic books ● Karaoke!!! Hi, I’m Dwayne
  3. 3. Pantheon.io 3 Pantheon Background  Pantheon is a platform for developers and agencies to quickly build, launch and run sites in a sane and scalable way Pantheon has over 400 signed agency partners + over 3000 agencies worldwide using the tools
  4. 4. Pantheon.io 4 What we’ve learned about agencies 
  5. 5. Pantheon.io Surprise…. THERE IS NO MAGIC ‘ONE SIZE FITS ALL’ NUMBER FOR THIS!!!
  6. 6. Pantheon.io Outline ● How to uncover the right pricing strategy to ‘fund your life’. ● Articulating differentiation and focus on value instead of price. ● Choosing hourly vs fixed bid pricing based on the situation. ● When and how to bundle additional services like hosting, SEO and support services.
  7. 7. Fund Your Life
  8. 8. Pantheon.io How much to fund a life? Think “Thriving” not “Subsistence” VS
  9. 9. Pantheon.io Work - Life Balance
  10. 10. Pantheon.io No magic formula, but… Expenses ÷ Working Hours ≈ Minimum Viable Hourly Rate Special shout out to Heather Acton, Founder, Helio Interactive for this advice from WordCamps to freelancers
  11. 11. Pantheon.io Example https://docs.google.com/spreadsheets/d/1RZ-uyuywS06_JS8PO79QHi_Go3uWFhW8Kob4ysj9C2Q/edit
  12. 12. Value vs Price
  13. 13. Pantheon.io 13 Secret of all sales  People spend $ on things they value
  14. 14. Pantheon.io How much is a project worth?
  15. 15. Pantheon.io What does a website cost?
  16. 16. A dream written down with a date becomes a goal. A goal broken down into steps becomes a plan. A plan backed by action makes your dreams come true. – Greg S. Reid
  17. 17. Pantheon.io 17 Sales Basics: Sales funnel  ● Leads ● Qualified Leads ● Proposals ● Growth goal ($$$) ● Outreach and Networking ● Qualification ● Discovery ● Procurement ● Profit!!!
  18. 18. Pantheon.io 18 Discovery process  VS
  19. 19. Pantheon.io 19 Value Based Discovery  Some basic rules: ● Ask open ended questions ● Focus on the ‘Why’ ● Resist talking about your value until you have enough information to match your value to what they want to accomplish ● Listen 75% of the time. Talk 25%
  20. 20. What about your value?
  21. 21. Proving your value to clients Portfolio, Client Reviews, Case Studies + Expert Content
  22. 22. Hourly vs fixed bid
  23. 23. Pantheon.io Poll time
  24. 24. Pantheon.io Every situation is different, but... General rule of thumb I have heard: ● If the client has not defined scope of project- Hourly might be best. ● If the project has a specific, defined - scoped they will probably also have a real budget. These require very tight boundaries
  25. 25. Bundling additional services like hosting, SEO and support services
  26. 26. Pantheon.io 26 Sales Basics: Sales funnel 
  27. 27. Pantheon.io Discovery is the time to ask: ● What do you expect to do for site updates? ● How will you react to SEO optimization evolutions? ● What frequency are you expecting me to check in with you? ● What do you expect me to do if the site goes down or gets hacked?
  28. 28. Pantheon.io And do you even want to? ● Are you good at all these areas or should you make a referral? ● Are you set up to handle hosting or should you rely on a partner company?
  29. 29. Pantheon.io “Yes, I can do that.” Vs. “Yes, I could do that, but only for a price.” Never give away your time
  30. 30. Pantheon.io No matter what though…. DEFINED AND ENFORCED SCOPE IS CRITICAL!!!! Scope creep is a killer
  31. 31. Tips for new and small agencies
  32. 32. Pantheon.io Freelancer or Consultant? Freelancer Does Not Sound As Valuable As A Consultant
  33. 33. Pantheon.io Do’s and Don’ts ● Do - Trust your instincts. ● Don’t - Take a bad deal.
  34. 34. Pantheon.io Do’s and Don’ts ● Do - Raise prices, at least annually. ● Don’t - Reduce your rates. Ever.
  35. 35. Pantheon.io Do’s and Don’ts ● Do - Fire bad clients. ● Don’t - Be afraid to ask for referrals.
  36. 36. Pantheon.io Do’s and Don’ts ● Do - Give yourself regular raises. ● Don’t - Pay yourself last. http://thecoffeebeanmedia.com/dos-and-donts-of-logo-designing/
  37. 37. Pantheon.io Do’s and Don’ts ● Do - Plan regular vacations. ● Don’t - Work weekends ‘for free’. http://thecoffeebeanmedia.com/dos-and-donts-of-logo-designing/
  38. 38. Pantheon.io Do’s and Don’ts ● Do - Have a Pet Project to continually enable you to learn new skills. ● Don’t - Don’t let your projects control you.
  39. 39. Pantheon.io 39 Further Reading/Listening  *MJHoffman - https://twitter.com/mjhoffman *You Can't Teach a Kid to Ride a Bike at a Seminar Book by David H Sandler and John Hayes *The Challenger Sale: Taking Control of the Customer Conversation - Book by Brent Adamson and Matthew Dixon *Predictable Revenue - Predictablerevenue.com
  40. 40. Pantheon.io Agency and Community Success Manager at Pantheon. mcdwayne on Twitter. dwayne@pantheon.io Some things I enjoy, aside from tech, are ● Improv comedy and theater ● Comic books ● Karaoke!!! Goodbye, I was Dwayne
  41. 41. Thanks