Land More Clients with Persuasive Fees

HOW TO : Freelancers and agencies spend a lot of time figuring out how much to charge, but not how to present their fees to clients. Research shows that the right presentation can result in more projects being approved with more revenue for each project. LAND MORE CLIENTS WITH PERSUASIVE FEES MOST COMMON TYPES OF ESTIMATES ... The Email Quote: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Donec lorem eros, ultricies ut porttitor vitae, auctor at mi. Integer est enim, blandit sit amet luctusbendrerit, facilisis ipsum. Cras imperdiet scelerisque pellentesque. Vivamus matis erat eget purus adipiscing mattis. Mauris id sem id ligula congue pharetra tempor non to kin ye m armu Cro dui vel tellus vulputate vestibulum eget et odio. Sure, I can do that for $X,XXX.XX Problems with this approach... YES OR NO Vs. 1. OPTIONS 2. PRICE VS. VALUE 3. COMPARABLE 4. SMALL PROJECTS It doesn't show what makes your service different from others; this invites Many high value clients automatically disqualify estimates given inside an It's 100% focused on price You only get one chance to get it right. It quickly turns into a yes/no instead of the result the client is looking for. decision and misses the them to compare your email because of the informal style. opportunity to help the client get better service. price to competitors. SERVICE QTY RATE TOITAL The Invoice Style Estimate: Service offered ## ss/hr Service offered to client 50 hrs $100/hr $5,000 Service offered ## $s/hr $S Service offered $s/hr Service offered ## ss/hr Problems with this approach... 00Q $96 YOUR SERVICE COMPETITOR 1. HOURS SHOWN 2. SERVICE NAME 3. TOO MANY PRICING ITEMS Fees should be as simple as possible while communicating value. Each item presented separately will cause clients to evaluate each service separately. This focuses on the time each The names of tasks or services say that what you do is a commodity and invites clients to make a price comparison to competitors. task or service will take. You want to focus on results your client cares about instead. USE THE BUNDLED PRICING TECHNIQUE INSTEAD Follow the next three steps to be more persuasive with the way your fees are presented to clients. SERVICE PRICE Step 1: Bundle Your Fees Into a Single Solution Solution name ## Solution description: The description for your service goes here. Take all of your fee items and create a single solution with a price but no hourly information. Solution description: The description for your service goes here. The solution name should be benefits/solution focused and describe how your solution will solve the client's problem. TRADITIONAL PRICING 34% APPROVED BUNDLED PRICING 47% APPROVED 36% more likely to be approved than traditional estimates. Step 2: Up-sell with the right kind of options RELATED CORE SERVICE (OPTIONAL) SERVICE Marketing website design SEO campaign Present additional options to help turn it from a yes/no choice into a decision where they feel like they have have some control in choosing what's right for them. How most people up-sell: They give options that are related, but clients need to be sold on each of those options. ENHANCED CORE SERVICE (OPTIONAL) SERVICE Better way to up-sell: Options are given that can improve the service that the client already wants. They understand the benefit and are deciding on the level of service they want. Marketing website design Complete website design & programming Step 3: Limit options you present A famous supermarket experiment in 2000 with jam found.. JAM JAM JAM JAM JAM JAM Percentage of customers who 30% purchased when there was only 6 flavors of jam Present one or two additional options. Having too many options often results in less sales. Percentage of customers who purchased when there was 24 flavors of jam 25,000 proposals and estimates researched show... JAM JAM JAM JAM JAM JAM 3%- Just 1 to 2 options result in 32% more revenue JAM JAM JAM JAM JAM JAM JAM JAM JAM JAM JAM JAM 1 2 32% JAM AM JAM JAM JAM JAM Bidsketch Sources: Bidsketch.com, "Million Dollar Consulting" by Alan Weiss, "When Choice is Demotivating" by Sheena S. lyengar and Mark R. Lepper