If you ever give a single price to a client, you can guarantee that price is wrong.
Everyone values things differently – it’s one of the difficulties we have to deal with when value pricing.
You have no idea how much any client is going to value the work that you do, so it’s your job to get as close as possible to what economists would call the buyer’s reservation price – more commonly referred to as the maximum willingness to pay.
Why You Should Charge As High As You Can
The majority of the accounting profession are undercharging massively because of the fear of rejection and losing clients.
When you undercharge, you will find you end up having to cut corners, skip out on valuable extras and not give the client the results they really want.
It’s not intentional, but because you are so busy, you end up rushing jobs, making small mistakes or missing out on potential opportunities for the client.
As you make your journey to value pricing, one of the very best places to start is Menu Pricing.
We know that different customers value different things, they all want to pay different prices - so let them. Give them three choices - Bronze, Silver and Gold.
Menu Pricing works.
That’s why you see successful businesses like Apple, Starbucks and Intuit using it.
I have so many stories of people increasing their prices by 20% or more. Some people say that menu pricing doesn’t work - those people clearly aren’t doing it right.
I’m going to share a 7-step framework that will help you to build really effective packages.
You can watch the video here.
#1 - Number
You need to decide how many bundles you are going to offer.
I recommend three. This is because of the psychology of the magic of three. It’s proven to be the best number with some exceptions. Unless you can prove another number works better, start with three.
#2 - Customer segmentation
This step is...