Webinar
Pricing Pitfalls
• Countering the Pricing Pitfalls
• Building a Pricing System
• A Peek Under the Hood
In this webinar:
Gus Prestera PhD MB...
Ooops
“ ”
Peace of
Mind
Productivity
Growth
How do you drive
that value?
Your
Capabilities
Your
Value
(results)
Value
Drivers
(approach)
“I build
websites”
“…that hel...
• Collaboration
• Inclusion
• Pace
Cultural
Factors Leadership
Factors
Timeline
Factors
Resource
Factors
Technical
Specs
A...
Hourly Rates Day Rates
Project and Hybrid Rates Deliverable Rates
Design Services: (Hourly Rates by Role)
• Instructional ...
Ask your client
contacts
Informational Interview:
“What trends are you seeing in our industry?”
“How has your business
cha...
On an Ongoing Basis Before Presenting Your Pricing
When Presenting Your Pricing After Presenting Your Pricing
Always meet ...
Ooops
“ ”
Why
“ ”
1. To respond quickly
2. To leverage my time
3. To gain visibility
4. To present confidence
5. To grow my practice
Know Thy Self
Create
Personal
Budget
Estimate
Startup
Costs
Create
Business
Budget
Set
Financial
Goals
Analyze
Rates &
Uti...
PRICING YOUR SERVICES
M O D U L E S
1. Primer (20 min)
2. Establish Your Budget (3 hours)
3. Establish Your Rate Structure...
Talking Head Video Narrated Screencast
Narrated PowerPoint Animation Screen Text with Images
Picture-in-Picture
Slides with
visual aids
Talking
points
covered in
the course
Course
outline for
frame of
reference
Space for
your to
write...
Bonnie Bell, SHRM-CP
Director, Staff Development
Ballard Spahr LLP
David Manning
Managing Partner
Performance Development ...
How much personal income
do you need?
How busy and what rates would you
need to charge to achieve your goals?
What are you...
B U N D L E D PA C K A G E S
PRICING YOUR SERVICES
M O D U L E S
Per Unit
Price
Essentials
Bootcamp
$ 199
Professional
Cla...
http://academy.presterafx.com
Pricing Pitfalls...and How to Counter Them
Pricing Pitfalls...and How to Counter Them
Pricing Pitfalls...and How to Counter Them
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Pricing Pitfalls...and How to Counter Them

This deck is from a webinar I conducted (available on YouTube), describing five common mistakes that business consultants make when pricing their services...and more importantly, strategies for countering those traps. I also give you a peek into the Pricing Your Services program, a series of online courses that teaches consultants how to build their pricing system and compete for projects effectively, quickly, and confidently. Visit http://academy.presterafx.com to learn more.
Published on: Mar 4, 2016
Published in: Business      
Source: www.slideshare.net


Transcripts - Pricing Pitfalls...and How to Counter Them

  • 1. Webinar Pricing Pitfalls
  • 2. • Countering the Pricing Pitfalls • Building a Pricing System • A Peek Under the Hood In this webinar: Gus Prestera PhD MBA Mentor | Consultant | Entrepreneur President, Prestera FX, Inc. gus@presterafx.com
  • 3. Ooops “ ”
  • 4. Peace of Mind Productivity Growth
  • 5. How do you drive that value? Your Capabilities Your Value (results) Value Drivers (approach) “I build websites” “…that help clients grow revenue” “Our proprietary Search Engine Optimization tools” “Proven templates that have been A/B tested to ensure high impact” “Time tested process, producing 40-50% revenue increases for clients”
  • 6. • Collaboration • Inclusion • Pace Cultural Factors Leadership Factors Timeline Factors Resource Factors Technical Specs Assess Project Risk & Complexity Cultural Factors • Power Dynamics • Committed/Flexible • Structured/Fluid Leadership Factors • Deadlines & Milestones • Criticality • Flexibility Timeline Factors • SME Accessibility & Responsiveness • Source Materials • Internal Cooperation Resource Factors • ? • ? • ? • ? Technical Specs
  • 7. Hourly Rates Day Rates Project and Hybrid Rates Deliverable Rates Design Services: (Hourly Rates by Role) • Instructional Design Associate: $$ • Instructional Designer: $$$ • Senior Instructional Designer: $$$$ Facilitation Services: $$$$ per training day Actor (video talent): $$$$ per video shoot day Media Services: $$$ per web page Media Services: $$$ per minute of finished audio Design Services: (Hourly Project Rates by Role) • Instructional Design Associate: $$ • Instructional Designer: $$$ • Senior Instructional Designer: $$$$ • Hybrid Rate: $$$ Example: • Your normal rate: $150/hr • Client says she normally pays $100/hr • Client agrees that normally the work should take 100 hours • Client is willing to pay $100 x 100 hrs = $10,000 What if you’re so efficient that you can get it done in half that time? $10,000 / 50 hrs = $200/hr
  • 8. Ask your client contacts Informational Interview: “What trends are you seeing in our industry?” “How has your business changed over the past couple of years?” “What is it about working with you that your stakeholders value the most?” “What needs and concerns are you most often hearing from your clients?” “Who are your main competitors?” “What do you think differentiates you from them?” Check with Industry Groups Ask colleagues in your network Google competitors, clients, pricing Follow on LinkedIn & Twitter
  • 9. On an Ongoing Basis Before Presenting Your Pricing When Presenting Your Pricing After Presenting Your Pricing Always meet to go over your pricing: • Start with business needs, requirements—check • Go over proposed solution, if applicable—check • Deliverables, services, resources, process—check • Pricing options and rationale—check
  • 10. Ooops “ ”
  • 11. Why “ ” 1. To respond quickly 2. To leverage my time 3. To gain visibility 4. To present confidence 5. To grow my practice
  • 12. Know Thy Self Create Personal Budget Estimate Startup Costs Create Business Budget Set Financial Goals Analyze Rates & Utilization Know Thy Market Know Thy Value Gather Market Intelligence Define Value Proposition Set Rate Structure Upfront Preparation For Each Project Ongoing Basis Scope Client Needs Estimate Work Effort Estimate Project Costs Estimate Pricing Bottom-up estimation Gather Market Intelligence Gather Client Intelligence Gather Competitor Intelligence Consider Your Own Situation Top-down estimation Apply Pricing Strategy Defend Your Pricing Track Your Pricing and Costs Gather Intelligence Build Estimation Models Refine SOW Template Build Proposal Assets Refine Proposal Template Sharpen your tools Validate Estimation Models Build Preso Assets Invest in sales collateral
  • 13. PRICING YOUR SERVICES M O D U L E S 1. Primer (20 min) 2. Establish Your Budget (3 hours) 3. Establish Your Rate Structure (2 hours) 4. Scope and Cost Your Projects (4 hours) 5. Apply and Defend Your Pricing (3 hours) 6. Consultant Panel Discussion (3 hours) 7. Write Your Statements of Work (launches Jun-1) 8. Build Your Estimation Models (launches Jun-1) 9. Build Your Sales Collateral (launches Jun-1) 10. Client Panel Discussion (2 hours) 11. Write Your Proposals (launches Aug-1) 12. Present Your Proposals (launches Aug-1) 13. Negotiate Your Contracts (launches Aug-1)
  • 14. Talking Head Video Narrated Screencast Narrated PowerPoint Animation Screen Text with Images Picture-in-Picture
  • 15. Slides with visual aids Talking points covered in the course Course outline for frame of reference Space for your to write your own notes
  • 16. Bonnie Bell, SHRM-CP Director, Staff Development Ballard Spahr LLP David Manning Managing Partner Performance Development Group (PDG) Paul Schneider, Ph.D. Senior Vice President, Business Development dominKnow Inc. (makers of Claro) Jeff Dorman Gazelles International Certified Coach Jeff Dorman & Associates Belen Bilgic-Schneider Interactive Courseware Consultant and Communications Specialist (freelance) Rich Waite, M.Ed. Vice President, Learning and Performance Delta Point, Inc. John Shaw Vice President, Customer Success BravoSolution Michael Noble, PhD Chief Learning Officer Allen Communications Jim Williams, MS Director, Talent & Organizational Effectiveness Carpenter Technology Corporation Karen Clay Basile, MS Sr. Director, Learning Tyco University
  • 17. How much personal income do you need? How busy and what rates would you need to charge to achieve your goals? What are your business’ monthly and annual costs? What are your target rate, discounted rates, and minimum rate? What are the project tasks, resources, timeline, costs, and estimated pricing? What questions will you ask your client when scoping new projects?
  • 18. B U N D L E D PA C K A G E S PRICING YOUR SERVICES M O D U L E S Per Unit Price Essentials Bootcamp $ 199 Professional Class $ 499 Master Class $ 999 1. Primer (20 min) FREE X X X 2. Establish Your Budget (3 hours) $ 59 X X X 3. Establish Your Rate Structure (2 hours) $ 59 X X X 4. Scope and Cost Your Projects (4 hours) $ 59 X X X 5. Apply and Defend Your Pricing (3 hours) $ 59 X X X 6. Consultant Panel Discussion (3 hours) $ 69 - X X 7. Write Your Statements of Work (launches Jun-1) $ 69 - X X 8. Build Your Estimation Models (launches Jun-1) $ 69 - X X 9. Build Your Sales Collateral (launches Jun-1) $ 69 - X X 10. Client Panel Discussion (2 hours) $ 199 - - X 11. Write Your Proposals (launches Aug-1) $199 - - X 12. Present Your Proposals (launches Aug-1) $ 199 - - X 13. Negotiate Your Contracts (launches Aug-1) $ 199 - - X
  • 19. http://academy.presterafx.com

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