Continuing our pricing discussion…

Last week I shared the two words you can use in the price conversation to give you the flexibility to charge more than your initial quote. In this email, I’ll help you take the next step by helping you command a higher fee for the project.

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We talk about it every two weeks.

The car conversation. Specifically, whether or not we should buy one.

Living in an urban environment like DC, there are more than enough transportation options: Metro, buses, biking, Uber, Lyft, and FOUR bike sharing services. And of course, walking.

We don’t really need a car. But that doesn’t mean we don’t WANT one. So every two weeks or so, we talk about getting our dream car.

So onto the Internet we go.

You probably know how this goes.

You start with the base version of the car, offered at the base price. Then, of course, you start adding. The heated seat package here. The advanced parking package there. And soon you have your dream car, for a price that’s thousands of dollars more than the base price.

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When I go through this exercise, I’m reminded of this basic principle: people want to know that there’s a solution that meets their needs. But they’ll pay for a solution of even greater value.

I have no doubt that any car at the base price will achieve our basic objectives: it drives, has seatbelts, etc.

But I’m willing to pay for higher value: for the things that solve a pain.

When I build my car, I’m not getting heated seats because I want better seats. I’m getting them because I hate getting into a cold car on a winter day.

I’m not getting an advanced parking package because I want more cameras and sensors. I’m getting it because it’ll eliminate the dings and scratches from my bad parking.

So while the base version of the car is sufficient for my needs, the built car provides more value to me. And like most people, I’m willing to pay for that value.

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You can leverage this principle to develop the packages and services for your potential clients.

I encourage my clients to create three options to work together.

• The first option satisfies the outcomes they're looking for, and is within the price that you set (your “starts at” price). If we were talking about cars, this would be the base price.
• The second option includes what’s in the first option, and goes beyond meeting the basic outcomes. This option offers more benefits towards the transformation you’re promising, at a higher price.
• The third option includes what’s in options 1 and 2, and offers even more value to the client, at the highest price.

You’ll want to put enough value in them that each of the packages feels different, and you’ll want to price them so that there’s a measurable difference in price.

Finally, name the options in a way that makes the value explicit.

Here’s how this might look:

• Option 1: The Basics ← this satisfies the objectives
• Option 2: Sustained Learning Program. Includes everything in Option 1, and some exercises, workbook, follow-up practice materials, etc.
• Option 3: Skill Mastery Program. Includes everything in Options 1 and 2, and includes quarterly check-ins and coaching.

This approach of offering three options creates a 75% chance that they’ll say yes to one of the packages. Better yet: studies show most clients choose the middle package.

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How do you know what to put into the packages? Through great discovery.

In your conversations with potential clients, uncover what’s important to them. What’s driving them to seek a solution right now? Is it tied to something that happened, or something that they fear will happen? Or is it tied to a specific milestone or deadline? What does fixing this problem mean for them personally?

Uncovering these things by doing great discovery will give you the keys to develop packages that enable you to deliver additional value. And that value will help you command a higher fee.

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If you’d like help putting together your packages and pricing, schedule a one-on-one coaching call with me. We’ll spend an hour developing high-value packages that let you command a higher fee for each and every client engagement. I’ve helped my clients charge between $1,000 and $5,000 more per project and finally feel like they’re getting paid what they’re worth. Set up a coaching call to get started.

P.S. Will we ever get a car? I don’t know. Ask me again in two weeks. :)

P.P.S. If you found this post helpful, please pass it on! Click here to share it. I appreciate it!