Today's thought

The costly alternative

It’s hard to quantify the value you bring to the table.

“Value” is different for everyone — including you, the one with the power to set the price! Which is why pricing is one of the hardest things to figure out in business. Here’s a simple question that’s helped me feel more confident in charging appropriately for both services & products:

“What’s the costly alternative?”

Every purchase is a choice to use money to solve a problem. When someone buys your offer, they’re deciding that the value of their money is worth LESS than the value of continuing to maintain their current, painful situation (the costly alternative). Your job is to make an educated guess at what the value of that solution is, and price it so that it’s a no-brainer to buy.

Aim to provide at least 10x value in your offer.

Example: If a website client would normally be billed upwards of $10,000 for a website, selling them a killer template—still designed by you, and gets them 90% of the way to a finished site—for “just” $500 is a total steal. The return on investment is massive, and they’re similarly stoked with the result.

Do everything you can to make “value” tangible, and the nebulous process of pricing becomes just a little bit more straightforward.

It’s hard to quantify the value you bring to the table.

“Value” is different for everyone — including you, the one with the power to set the price! Which is why pricing is one of the hardest things to figure out in business. Here’s a simple question that’s helped me feel more confident in charging appropriately for both services & products:

“What’s the costly alternative?”

Every purchase is a choice to use money to solve a problem. When someone buys your offer, they’re deciding that the value of their money is worth LESS than the value of continuing to maintain their current, painful situation (the costly alternative). Your job is to make an educated guess at what the value of that solution is, and price it so that it’s a no-brainer to buy.

Aim to provide at least 10x value in your offer.

Example: If a website client would normally be billed upwards of $10,000 for a website, selling them a killer template—still designed by you, and gets them 90% of the way to a finished site—for “just” $500 is a total steal. The return on investment is massive, and they’re similarly stoked with the result.

Do everything you can to make “value” tangible, and the nebulous process of pricing becomes just a little bit more straightforward.

Hundred Daily™ is a 100-day writing challenge by Aaron Rolston. The goal is to publish 100(ish) words daily & send them out via email. Consider subscribing if you'd like to receive daily broadcasts from me.

Aaron Rolston © 2099

Aaron Rolston © 2099