Episode 3: Understanding Pricing

Hosted by  Brennan Dunn and  Eric Davis

• Fall in Virginia
• Writing fiction
• Pricing freelancing services
• Double your freelancing rate
• Reverse engineering your former salary
• Value based pricing, value delivered to clients
• Origins of your price
• How to decide on a price
• Cost plus – Cost of materials, cost of equipment, labor cost, and profit.
• Commodity pricing
• Lack of major expenses for freelancers when using a cost plus model
• Cost of living
• Market rate
• Battle between supply and demand
• High demand drive rates up, low demand drive rates down
• Also a commodity based strategy
• Economic substitutes
• Imperfect market
• Value based pricing (Consulting)
• Hired as an investment
• Goal is to make more money in the long run than the cost
• Emotional need
• Charge based on results
• Reflecting on the customer’s business and proposing a solution to help
• Using your skill (software, copywriting, etc) as a means to the end (business results)

Interview with Nathan Barry. If you have any questions for him, post a comment below.

Brennan  -  Samson Meteor Mic,  Shush Mac app, and  The Strategy and Tactics of Pricing: A Guide to Growing More Profitably.
Eric  -  Million Dollar Consulting.

Ask your next potential client questions that get at the business value of the project:

• Why are you looking for this project?
• What kind of financial outcomes are hoping a successful completion of this project will bring you?
• What would you consider a failed project?

Try to get to the root of why the client is coming to you and see what you can do so you can deliver a substantial amount of business value to them.

We’re hoping to get a transcript later.