I was listening to an old video by Allen Weiss about Value Based Consulting/Selling. I get the general idea of this: your prices reflect the value you give to the client.
What I'm stuck on is the implementation of this idea. Currently I'm thinking of it like this, and since I can't truly wrap my head around it, I must be thinking wrong or not enough:
I offer website (and design) related services. Let's say, to keep the numbers easy, a simple website on average on the internet and by me to make costs $1. So I'd normally offer the website creation service for $1.
But if the client will get $100 in sales because of my direct services, instead of charging $1 I should charge, $10? Yes, I know it's not a great example, but is that how it works?
Because I currently can't see how I can evaluate a client to see how much 'value' my website will provide them. Or how much value their new logo will give! Heck ... how on earth do you even put a non-set value on a logo?
I could just say, instead of $60/h I'll not charge $600 and call it 'value based', but that's all wrong.
So ... would it be something like:
Someone asks for a super simple site that takes me 10 minutes to setup I should charge, oh ... $10? Because that's 1/6th of an hour and thus 1/6th of my hourly rate?
But then that's not 'value' based ...
And now I've confused myself some more.
Does anyone have any ideas? Reading material? Resources? Thoughts?
What I'm stuck on is the implementation of this idea. Currently I'm thinking of it like this, and since I can't truly wrap my head around it, I must be thinking wrong or not enough:
I offer website (and design) related services. Let's say, to keep the numbers easy, a simple website on average on the internet and by me to make costs $1. So I'd normally offer the website creation service for $1.
But if the client will get $100 in sales because of my direct services, instead of charging $1 I should charge, $10? Yes, I know it's not a great example, but is that how it works?
Because I currently can't see how I can evaluate a client to see how much 'value' my website will provide them. Or how much value their new logo will give! Heck ... how on earth do you even put a non-set value on a logo?
I could just say, instead of $60/h I'll not charge $600 and call it 'value based', but that's all wrong.
So ... would it be something like:
Someone asks for a super simple site that takes me 10 minutes to setup I should charge, oh ... $10? Because that's 1/6th of an hour and thus 1/6th of my hourly rate?
But then that's not 'value' based ...
And now I've confused myself some more.
Does anyone have any ideas? Reading material? Resources? Thoughts?
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