Have you ever wanted or needed a service, only to checkout the pricing structure and realize it was totally out of the price range you were thinking (or hoping) it would be?
Why do some Consultants charge $2,000 an hour and some charge $50?
Regardless of the industry, one thing is for sure. Pricing can be wildly inconsistent.
Now, I’m no pricing expert – I still think I can charge more for my services (I think Entrepreneurs undercharge for this way too long). However, I’m satisfied with what I charge people.
In order to have a discussion about pricing, we have to have a discussion about psychology, of course!
When people ask, what is “branding”? I always like to point out the “Walmart versus Target” difference. There is a clear difference in the brand of Target versus Walmart – and I don’t just mean in the logos. The type of customer that one attracts is usually, very different.
Walmart positions itself as “the cheapest”. Where as Target positions itself as “quality”. When someone shops at Target, unless it’s out of a convenience factor (living closer, etc), they are doing so for a reason – otherwise, why wouldn’t they simply save money at Walmart?
Let’s use another example with a Super 8 Hotel and the Hilton Hotel chain. Hilton charges as much as 800% more for…a room. And what you actually get, besides the experience, is pretty much the same. Those water bottles in the room certainly aren’t free – most at $4-8!
My point is the reason anyone, including Consultants, can charge ridiculous amounts more, is all about the experience…how are you making them feel?!
One of my favorite quotes by Maya Angelou:
“People May Forget What You Said, They May Forget What You Did, But They Will Never Forget How You Made Them Feel.”
This is 1000% true in Consulting and making money through any value based business.
Here are some of the reasons I charge a lot with the clients I work with:
- I’ve now spent over $150,000 on courses, education, and masterminds to level up my skills (this doesn’t include college, college doesn’t work for Digital Marketing)
- I get to work with literally, the best in the industry (I’m a Measurement Marketer for some of the original Digital Marketers who laid the foundation for what is Digital Marketing today)
- I’ve put in the time, not just the money (Do 80-100 hour weeks sound fun? They aren’t, but they are necessary if you want to be an expert)
- Money spent on Ads (Best way to learn ads isn’t to go through courses, its to spend money and fail, in order to succeed)
- I’ve paid other Consultants to train me (It’s kid of the whole – if you are the smartest person in the room, then you should find a new room…I’ve paid Consultants that are smarter than me to teach me)
This post isn’t meant to brag. It’s far from that. I’ve wasted a lot of money…but in the end, it was far from wasted because I learned from my mistakes and didn’t make them with my clients, just with my own business.
If you are a small business owner or high enough up to affect pricing, I challenge you to look at your pricing model and see if its accurately reflecting the experience you are providing your customers.
And if you aren’t sure – you should survey your customers (and actually give them something they want in return for doing so). That qualitative data is gold and should pave the way for you future business decisions.