The WordPress Freelancer and Value-Based Pricing

HandsOnWP.com @nick_batik@sandi_batik
The WordPress Freelancer
and Value-Based Pricing
Austin WordPress Meetup
August 8, 2016
Presented By Sandi Batik & Nick Batik

Every Thing We Know About Value Pricing
We have Learned By Either
Surviving Our Own Mistakes
– or –
Listening To Chris Lema…
Some helpful insights for
freelancers on how to set your
prices from Chris Lema’s
"You Can Quote Me…"

Inexperienced WordPress
Freelancers Often End up Deciding
Prices Based on Time or Comparison.

You will become more
valuable over time.
Your pricing should increase over time.

Value Pricing is about understanding
your client’s business environment their
business model.

“YOUR EXPERIENCE IS
SAVING CLIENTS MONEY.”
Your pricing should
reflect that reality.

FIND YOUR
REPEATABLE NICHE
• Become an Expert in that Specific Niche, so
you can add value to clients in that niche
• Generating Interesting Use Stories for your
Niche market can significantly increases the price
• clients are willing to pay for your experience
and the added value it offers them

INVEST THE TIME AND FOCUS ON
BUILDING A CORE EXPERTISE
THAT INCREASES YOUR VALUE

STEP 1 –
WHICH CORNER DO YOU
WANT?• Your first step is to decide which corner you want to
own.
• What area is it that you specialize in that no or few
other people do?
• You are not just a WordPress developer.
• You do not just build websites.
• Write down your point of specialization.

STEP 2 –
WHO ARE THE PLAYERS?
• Now you know which corner of the market you
best fit into, you need to find out who your
competitors are.
• Don’t just think geographically (though this is a
good place to start).
• Are they solving a client’s problem in a different
way to what you will be?

STEP 2 –
WHO ARE THE PLAYERS?
• Make a list of your perceived competitors
and peers and get to know them.
• You want them to understand your point of
specialization as well as you understanding
theirs.

STEP 3 –
UNDERSTAND YOUR PROFIT
MARGIN
• Do you know where your “floor” is?
• Never a set a price that is not profitable
• Price products so that every product or service sale
makes sense
• Is it sustainable going forward?
• Don’t have a loss leader to get people through the door

STEP 3 –
UNDERSTAND YOUR PROFIT
MARGIN
• Open excel and think about your last three
projects.
• Figure out what the expenses and costs of each
project were.
• Are you constantly testing?
• This will help you to understand your profit margin.

STEP 4 – PUT IN PLACE
YOUR PRODUCT
STRATEGY

• List all the extra
items you can think
of which will provide
a benefit to the client
in the future and that
you can sell as an
add-on to them.
• Now calculate the
profit margins for
each of these add-
ons.

STEP 5 – MAKE A PROMISE TODAY TO
STOP ANSWERING THE HOURLY RATE
QUESTION.
The next time a client asks you about this — have a
confident answer in place about how your expertise can add
to their sustainability.

“PEOPLE WANT RESULTS AND
THEY WANT THEM NOW!”
Your pricing should frame you as an accelerator.

ONLY PUT A PRICE IN FRONT
OF A CLIENT WHEN YOU FULLY
UNDERSTAND WHAT IS
MOTIVATING THEM.

TAKE THE TIME TO LISTEN AND
UNDERSTAND WHAT YOUR CLIENT
ACTUALLY NEEDS.
Be an active listener
Don't start solving the problem too soon
Go wide / Go Deep

Never put only a single option/price
in front of your prospect.
• Giving options can help
clients figure out what
they need.
• Create Options from
which clients can
chose High-end whiz
bang 2000 / mid-range /
less they might have
expected

Take The Time to Learn Your
Client’s Pain Points

TAKE THE TIME TO LEARN
YOUR CLIENT’S PAIN
POINTS
• Knowing the value of solving that pain helps
you understand how to set a realistic price.
• Are you speaking your client’s language and
taking the time to understand their needs?

TAKE THE TIME TO LEARN
YOUR CLIENT’S PAIN
POINTS
• Know your client and dig deep to
comprehend how much your solution is
worth to them.
• Maybe you have lost customers in the past
because you have priced too low rather than
too high.

Keep a history of your proven track record.
It goes a long way to justifying your rates.

Qualify your clients.
Be as selective as your clients are.
A good fit delivers great results.

"A problem well defined is
a problem half solved.”
— John Dewey

Sandi Batik
WordPress evangelist, consultant, trainer,
curricula developer, author, unapologetic geek,
unrepentant capitalist, lucky enough to do what
I love everyday. I’ve served as Austin
WordPress Meetup co-organizer since 2010.
With my husband Nick Batik, co-founded
Pleiades Publishing Services in 1992 and
Hands-On WordPress Training in 2010.
Follow me @sandi_batik / @WPATX
Contact me at: handsonwp.com
https://www.linkedin.com/in/hsandrachevalierb
atik
Presenter

Nick Batik
Started in web development in 1994 and have
been a WordPress consultant, and web
developer since 2007. A WordPress
evangelist, I’ve served as Austin WordPress
Meetup co-organizer since 2010. With my
partner, co-founded Pleiades Publishing
Services in 1992 and Hands-On WordPress
Training in 2010.
Follow me @nick_batik / @WPATX
Contact me at: handsonwp.com
https://www.linkedin.com/in/nicholasbatik
Presenter

The WordPress Freelancer and Value-Based Pricing

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