Your Pricing Should Communicate Your Value

Episode 44 April 08, 2022 00:15:20
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WP Review
Your Pricing Should Communicate Your Value
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Joe Casabona

Show Notes

The WordPress space is cheap! But that shouldn't let you keep your prices down.

Is that a fair assessment? Maybe I'm being too harsh, but anecdotally it's true. I suffer from not charging enough, in part due to being in the WordPress space too long. And I know other freelancers who have the same feelings. But that's why I'm grateful that I have good mentors in my life. And pricing what you're worth – that's what we're going to talk about today. 

Brought to you by GoDaddy ProGet all of the show notes, and a written to be read article over at https://wpreview.io/44

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Episode Transcript

The WordPress space is cheap but that shouldn’t let you keep your prices down. Is that a fair assessment? Maybe I’m being too harsh, but anecdotally it’s true. I suffer from that charging enough from being in the WordPress space too long. And I know other freelancers who have. But that’s why I’m grateful that I have good mentors in my life. And that’s what we’re going to talk about today on the WP Review. Welcome to WP Review. A show that provides analysis on what’s happening in WordPress and what it means for users and business owners in the ecosystem. This podcast is brought to you by GoDaddy Pro. My name is Joe Casabona. And today, I’m gonna tell you why your pricing should communicate your value, and why that will lead to better clients. Hey, real quick before we get started. I wanna tell you about my new Creator Toolkit Newsletter. I wanna help you find the right tools to make your personal and business life easier. Anyone can create content anytime anywhere. But finding the right tools that add more value to your content creation process is hard. From figuring out the best membership plugin to choosing an LMS, the process can be overwhelming. And that’s why I’ve created this very free, very weekly Creator Toolkit Newsletter. Every Wednesday at 7:00 AM Eastern, you will get a tip or tool delivered directly to your inbox. Again, this is completely free to join. You can sign up over at [creator courses.com/toolkits]. And as a thank you, you’ll get a set of toolkits. I’ve already created it as well as a free private podcast. So if you want to find the right tools to make your life easier especially when you’re creating, head on over to [creatorcourses.com/toolkits] and sign up today. I’ll never forget my first lesson in pricing. I was working at a deli (I am Italian from New York after all) and school was in session with my boss, Mr. Rizzi. I had just started my web design business after it kind of fell in my lap and getting several website requests. I was telling Mr. Rizzi about it when he asked me an important question: How much do you charge? Now, let me back up here when I say school was in session. I worked in the deli on Saturdays when we close at three. But then we’d also clean up for the weekend and that was our last day. And so I would spend an hour and a half after we closed with Mr. Rizzi and my friend Amy. And Mr. Rizzi always liked giving me business lessons. It’s the best school I ever had. You can’t really learn business from a textbook. You can learn from experience though. So anyway, he asked me, how much do you charge? I said “$10 an hour”. Remember, I was 15 or 16 at this point. He told me I needed to charge $25 an hour. A 150% raise would be great…but what if people didn’t want to pay that? I decided to ask him. And he asked me if my work was good… which it was. He told me $10/hour doesn’t say to him that my work is good. It says that I’m cheap and my work is cheap. So I raised my rates. And you know what? No one was scared away. That’s a lesson I kept with me as I continually gave myself raises. And I remember the first time I got pushback is when I hit $75 an hour. The guy who wanted to hire me said, “I thought you were a student.” I told him that I was very good at what I did regardless of my current status in school or otherwise. He told me his nephew (why is it always their nephew) would do it for $15 an hour. And I told him to give me a call when he was ready to hire a professional. See? That’s the thing about charging what you’re actually worth. It’s not you who gets weeded out by potential clients. It’s you who’s doing the weeding out. You’re weeding out clients who don’t appreciate or value your work. I learned later that guy was a giant pain in the neck. And I’m glad I priced him out of my services. And that story is not uncommon. I met somebody in a hospital waiting room one time who mean the same thing. And when I told her my rate, she told me it was too expensive and that again her nephew would do it for $75 flat. I said, Well, then she should absolutely pay that because what I offer is not what she’s looking for. And if you’re not doing that, if you’re not getting paid what you’re worth, if you’re just taking on any client who will give you money, it’s holding your business back. Now, different buyers have different values. And this episode is partially inspired by a tweet I recently saw. The tweet says, It’s genuinely wild how different buyers of the same product can be: Person #1: Might say, please add three features just for me and offer me a special discount on your lowest plan so I could potentially grace you with my business. While; Person #2: Has spent thousands of dollars upfront with zero calls or demand. Monica Lent (@monicalent) March 31, 2022 A personal friend of mine had a similar experience recently where they were getting emails asking for increasingly complex support on a very niche problem with the promise that this person would maybe sign up for my friends less than $20 a month membership. See? there are buyers like Person #1 who don’t value the work being done for them. So they try to squeeze as much out of the vendor for as little money as possible. These people in general are a nightmare because they don’t respect your work and they never will. They want what they need and they don’t care about who’s doing it or potentially how well it’s done. And it’s not just in the web design field or the content creation field or the WordPress space. My wife’s uncle was telling a story about how he went to a nice burger joint and then haggled and complained and tried to get the meal for free because he quote charged too much. I said if you want a $2 hamburger you can go to McDonald’s. They are everywhere. But this guy doesn’t see the value in good work. But then there are people like Person #2. They see you. They know you. And they know they need you. These are the customers you want because they pay you to do what you do best. They’ll gladly pay extra for the good burger because they know it’s good. So how do you get more of Person #2 and less of Person #1? I’ll tell you after the break. This episode is brought to you by GoDaddy Pro. GoDaddy Pro is an experience tailored specifically to the needs of web designers and developers and helps them more efficiently manage their work and deliver results for their clients. Combining website, client, and project management, GoDaddy Pro is an integrated solution made by and for web professionals. Whether you are new to web design or looking to grow your business, you’ll find the tools, products, guidance, and support to help you deliver results for clients. At the heart of GoDaddy pro is the hub. From one intuitive dashboard, the hub seamlessly brings your sites, clients, and projects together. Manage and monitor all of your client’s WordPress sites from a single place. No more juggling multiple client passwords. With one click, perform bulk updates, backups, and security checks no matter where your client’s sites are hosted. You will save time and free up your day. Integrated Project Management makes it easier to keep track of your client communications and deliver projects on time. Electronically sign, notarize, and store documents. You can create a visual timeline to break down projects into smaller tasks, to stay on track, and on time. Access all of your client accounts with a single sign-on through their tailored shopping experience by-products to help clients grow their business like powerful e-commerce stores using Woocommerce. You can always reach dedicated and knowledgeable customer support. 24/7. On top of that, you’ll find a thriving community of web designers and developers who share advice, insights, and learning opportunities. GoDaddy Pro is free to join. Head over to [go.me/wpreview] to get started. That’s [go.me/wpreview]. You get better clients. You get people who appreciate your work by raising your prices. That’s the first step. Harkening back to the advice that Mr. Rizzi gave me when I was but a teenager, a higher price shows people that you do quality work and sure you’ll get the tire kickers, and you’ll get the people who are trying to cheap out on you. But the higher price makes it very obvious who those people are. And as an added bonus like I just said, it’ll help you identify bad fits or even bad clients. Someone approached me recently about making a custom video for them. I gave them my price and they told me it was too high. They asked me what my absolute bottom price was. I told them that they were looking at it. They said it was more than they were willing to pay and outside of their budget. So I told them when they got the budget to pay for the quality of video work I deliver, to reach back out. Conversely, I’ve had clients both in web design and video production tell me what they need and then just invoice them. No questions asked on price. They know I’m fair, and they know that I can deliver what they need, and they’re willing to pay for that. And I know what you’re thinking. I know you’re thinking because I’ve thought about it. What if people don’t want to pay your higher prices? Well, then you’re not looking in the right places. In the past year, I’ve had a potential client pay my $500 consulting fee just to talk to me for 15 minutes. Then pay me a $1000 monthly retainer to produce their podcast. This person knew the value of my work before even meeting me. Here’s how. Because I niched down. Here’s a drum I’ll never stop beating: Niche down. Niche your services. Niche your potential customers and clients. Pick a problem to solve for someone, and then solve it well. Recently on my How I Built It podcast, I had Tara Claeys on. Tara’s a freelancer in the WordPress space who recently decided to niche down. As a result, she’s been getting more of the client she wants. She’s been able to charge more. And she’s closed her deals at a much higher percentage. Why? Because she’s creating helpful content within her niche. By the time a potential client reaches out to her, they understand she’s an authority in the space and have already decided to hire her. The proposal process is just a formality by this point. Just like with my client above. They found me and they knew they wanted to hire me. The consult was to show me that they were serious and to make sure that I’m not some fly-by-night website. I proved that it was worth the investment in 15 minutes or less. But niching down is only half the battle. You need to show that niche that you know what you’re talking about. And that’s why you need to publish good content. Once again, referencing How I Built It, I kicked off this year with an interview with Rachel Moulton on building authority. And she says the most important thing that you can do to build authority is to publish content. Publishing content is both a generous act (you’re giving away knowledge for free) and a way to prove your expertise. By defining your niche and your ideal customer, you can answer specific questions those folks would ask. Then you can publish the answers on your blog, podcast, or YouTube channel. Publish good content for your niche to prove why you are worth the higher prices. Now, here’s the deal with all of these. This is the long game. More and more I’m convinced that there’s no get-rich-quick scheme that really works. Sure you can bring in money quickly by taking it from whoever will give it to you. But that’s not going to grow your business just like you can walk up the down escalator. But you’re not going to reach the next level, and you’ll probably get tired before you do. Then you’ll just end up in a heap at the bottom of an escalator. So instead, take the extra time to find the up escalator and ride it to the next level. I bet you’ll find it’s not too far from where you are right now. That’s it for this episode of WP Review. I hope you liked it. As always feel free to reach out to me on Twitter or on the show notes page. There’ll be a way to contact me over at [wpreview.io/44]. I start with a very strong opinion. Now, I hope it got your attention. But I also hope that I have convinced you of my point of view. I’m always open to feedback. To get even more WordPress insights and to subscribe to the show, you can again head over to [wpreview.io/44]. You can also find all of the show notes there. If you liked this episode, share it with a friend, especially one who’s always complaining about how crappy their clients are. Thanks to GoDaddy Pro for sponsoring. Until next time. I’m Joe Casabona, and I’ll see you out there Posted

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