you should charge more - - design/development services pricing
DESCRIPTION
Lisa Sabin-Wilson, Owner WebDevStudios and AppPresser, Author As freelancers and entrepreneurs, we are in charge of assigning value to the work that we do. In 2004, as a freelancer, Lisa sold her first WordPress project for $75. Ten years later, as a partner in a thriving web design and development agency, she is frequently involved in projects 1000 times that much, often more. There are different considerations in pricing as a freelancer, and pricing as an agency. Lisa explores these considerations and shares her insight into common mistakes she made in her career as a freelancer, as well as pricing lessons, strategies and advice she is using today. This session will explore different pricing models, help you identify signs that your rates might be too low and some similarities and differences between freelancing vs. agency pricing strategies. You'll find out how she gradually increased her pricing as a freelancer because one of her (paying) clients encouraged her to do so, and you should be prepared for Lisa to encourage you to do the same!TRANSCRIPT
You Should Charge MORE!Lisa Sabin-Wilson Prestige Conference - October 2014 | Minneapolis, MN
2
You Should Charge More!Prestige Conference - October 2014 | Minneapolis, MN
!
LISA SABIN-WILSON
Partner, Chief Operating Officer - WebDevStudios Co-Founder, AppPresser
Author: WordPress For Dummies !
@LisaSabinWilson | @WebDevStudios
$75.00
3 Days.
$25 / day
" #$%DISCOVERY CONTENT
MIGRATION DEVELOPMENT DESIGN
8
RECOGNIZE YOUR VALUEWe like you, we REALLY like you!
&
' (
)*
I didn’t know how to judge my own value. I downplayed my own talents. My pricing
reflected that.
High end clients that you may be seeking WILL judge
you harshly if you are pricing yourself too low.
Experiment! Raise the price on your next project by a
couple hundred … or even a couple thousand. You may be
surprised!
In the end - always be prepared to demonstrate
your value in EVERY PROJECT you do.
YOUR VALUE
IT’S NOT EASY TO GAGUE YOUR OWN TALENT AND VALUE AS A FREELANCER.
GO WITH YOUR GUT.
9
HOURLY MODELTime is money, ya’ll!
&
How much time does it take to complete this project?
Calculate hours per task
Assign an hourly fee to each task.
1
2
3
+ simple calculation of taking an hourly rate (say, $10/hour) and multiplying that by the estimated number of hours the job will take (say, 100 hours). So, in this case, the business will bid $1,000 ($10/hour for 100 hours)
10
FIXED PRICING MODELOne cost to rule them all!!
&
Budget is fixed for services.
Viable model for projects with well defined requirements.
Provides little flexibility on project requirements.
1
2
3
+ Engagement lasts for a pre-defined period of time and any changes to the project requirements would require re-negotiation and change orders with additional contracting and billing.
11
TIME AND MATERIALS MODELOne cost to rule them all!!
&
Used when the scope and requirements for a project are not fully defined at the outset.
Provides the flexibility of varying the size and workloads of the development team assigned to your project, while optimizing time and costs
Provide skilled resources and the development effort is billed at the end of every month based on the pre-negotiated and a mutually agreed hourly rate
1
2
3
+ This engagement can go from a few months to several years.
12
VALUE BASED PRICINGWhat is the value of engagement?
&
How much money are we saving the client? How much revenue might the client realize from our services?
To what extent is our experience essential? How much would our problem solving mean to this client?
How hungry are we at the moment? More hungry = less fees Less hungry = higher fees
1
2
3
+ How much extra - beyond hours and tasks - is this job really worth?
13
MANY PHASES OF PROJECTSIs your cost accounting for all of them?
,
-DEVELOP
.MIGRATION
/RESEARCH
!
0
DESIGN
API Integrations. Project Management. Data Mapping. Copywriting. MORE!
14
DISCOVERY PROCESSDo you charge for it? Is it a separate line item?
1
Discovery.
Design. !
Data Mapping. !
Required features.
15
PROJECT MANAGEMENTDo you charge for it? Is it a separate line item?
1
Weekly phone updates. Managing teams. Managing clients.
Project Management one of the largest time investments
for any size project. !
Managing staff and clients takes time - are you
accounting for it?
16
RESPONSIVE DESIGNDo you charge for it? Is it a separate line item?
1
Your site willwork on all mobileand tablet devices!
Some feel that responsive design is a feature that is
EXPECTED. !
Others feel that responsive design is a feature that adds
VALUE.
17
BUMP UP THOSE PRICES!You know you should increase your prices when…..
!
WHEN YOUR CLIENT TELLS YOU TO
When you have a PAYING client telling you to increase your pricing - DO IT!
they see your value!
Even if you don’t!
!!!!
2SIGNS YOU NEED TO INCREASE YOUR PRICING
18
BUMP UP THOSE PRICES!You know you should increase your prices when…..
!
WHEN YOU HAVE MORE WORK THAN YOU CAN HANDLE
You are definitely doing_it_right();
clients recognize your talent!
Even when you don’t!
!!!!
2SIGNS YOU NEED TO INCREASE YOUR PRICING
19
BUMP UP THOSE PRICES!You know you should increase your prices when…..
!
WHEN YOU ARE TURNING DOWN MORE WORKTHAN YOU ARE TAKING ON.
You are in demand - capitalize on this!
they REALLY like you!
Even if you doubt it!
!!!!
2SIGNS YOU NEED TO INCREASE YOUR PRICING
YOU CAN DO IT!Lisa Sabin-Wilson Prestige Conference - October 2014 | Minneapolis, MN
THANK YOU!Lisa Sabin-Wilson Prestige Conference - October 2014 | Minneapolis, MN