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.

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

8. Cost
Rent, Computers, Advertising,
Supplies, Insurance
Plus
Profit (Typically a percentage)
Price
Price

9. Surveys
Determine what is valuable
Value
Increase rate to match value
Price
Price

10. Your Factors
Travel, Knowledge, Strategy
Their Factors
Location, Technology, Activities
Price
Price

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