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Pricing strategy

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Pricing strategy

Post by JJJJJ on Thu Jun 19, 2014 10:05 pm

This is an interesting article I just read. It's not aimed at face painters, but it is worth considering in your pricing strategies.


Freelance pros take the zeros out of project bids. Here's why.

BY: LINDSAY VAN THOEN Ė JUNE 16, 2014

FOLLOW THE MOVEMENT


Hereís a really simple piece of pricing advice that always works: cut the zeros.

Letís say youíre doing an interior design project for a client. You list out all the services youíll provide in your proposal, and then you give them a project fee: $5,000.

The client balks. Even though you provided a breakdown of how you got to that number, they want a breakdown of your hours or an itemized list of expenses. They try to haggle you down another $500.

What would happen if you quoted them a price of $5,180?

I bet your client would be happier. A specific number has greater meaning because it looks like you calculated your cost exactly. You took the time to break down all the custom component costs, and come up with a number for their needs -- not just the number you normally quote. $5,180 looks like an unrounded number with no padding.

Iíve seen it time and time again: clients donít like zeros. It wakes up their never-far-away suspicion that freelancers pad their quotes and are trying to milk them dry. Itís a law of non-even price numbers that marketers have employed for centuries.

If youíre pricing your services right -- based on true value -- you will not be lying to your clients. This is not about misrepresenting yourself. Itís about making the proposal and bid process smoother.

This is not always going to make your clients happy. But try it and you may see a difference.

JJJJJ

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Re: Pricing strategy

Post by TheGildedCat on Sun Jun 22, 2014 1:35 am

Agreed. There are a couple of interesting sales books on the psychology of pricing and this idea is backed by actual studies.
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Re: Pricing strategy

Post by Forest-Fairy on Mon Jun 23, 2014 2:29 pm

Interesting.....
Food for thought for sure.
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Re: Pricing strategy

Post by Little friends on Sun Sep 28, 2014 5:16 am

How do you pay someone to fill for you?
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Re: Pricing strategy

Post by TheGildedCat on Mon Sep 29, 2014 12:50 pm

Little Friends, like a subcontractor?
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Re: Pricing strategy

Post by jlirie on Tue Sep 30, 2014 12:30 am

so for face painting, this would apply to a price for a party, corporate event, etc where you are invoicing for the total amount?

does it apply to pay per face? i know in retail there is a similar concept, don't use whole dollar amounts like $4.00, $15.00, use $3.99, $14.99, or even end in .98, .97 or lower.
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