Price Points

I'm just faster than most, Judy. That's not always a boon. : )

Oh, I could give you more and more thoughts about moms and their rates. : )

You are SPOT on, Don. Linchpin by Seth Godin is a great way to start breaking out of that mindset, by the way.

You can charge whatever you want. People still have to play. Chris, I remain completely impressed by your smoke and mirrors. Seriously, you should be complimented for what you're able to convince clients to pay. By the way, can I get a refund for Trust Agents?

Hi Chris,

Your point about considering what it’s worth for a company to save money by “doing it right” the first time really rang true with me. As a web developer, I can’t tell you how many times a company has come to me frustrated and disenfranchised with the industry after having been burned by another firm.

It’s always amazed me how much a company will spend before they realize it’s just not working.

Hope all of the blog comments yesterday didn’t offend. That certainly wasn’t my intent. For many of us small business owners, spending 22K on a day of consultation seems incredible.

You’ve paid your dues Chris. I don’t think anyone should expect you to have to defend your pricing. Thanks for being so forthcoming.

Well, I tried it already and no, I didn't get the job. That is the good news, I didn't want the job for a penny less than I bid. So, thanks.

I'm all ears!

David Sivers talks about how a guy who toured with a carnival wanted to spend time with his family. In order to do that he was going to cut the number of shows he did each year. Knowing what he needed to earn he almost doubled his price.

The results: He did lose some clients who were not willing to pay the new price but what he found was many people were still willing to pay the price and the guy enjoyed his role more because it was not taking him away from his family.

You know you have pricing right when you can raise or lower your pricing by 10% without affecting your revenues.

I charge considerably less than you.
Some people don't hesitate when I say that my rates are $150/hr and up depending on the work – some choke. The ones who don't hesitate know what I can and will do for them and that it's worth considerably more than $150/hr. The ones who choke were looking for free work and make a habit of grinding through small businesses and consultants by making promises that it will be “worth it down the road” or “the time after this we'll be able to pay you that.” Fully intending all the while to move on to the next guy.

You're worth at least $22k a day if someone needs you one-on-one for a business reason… ThirdTribe is worth considerably more than $47/mo if someone needs it for a business reason. I'm worth considerably more than I charge – but we are in a “what the market will bear” field.

Great post Chris.

You're definitely worth more than you charge. But you're at least in the reasonable end of the spectrum. I'm seeing people charge $30. Yikes.

Actually, if your familiar with business and political consulting Chris' price is extremely fair, there are people that make 5 times that and more for 1-2 hour speaking engagements. Look into Anthony Robbins personal Day fees, last I heard it was in the millions. I think people forget the information shared is gained from usually hundreds of hours of mastering a given knowledge and being able to teach it. Its also knowledge you can use to make money with. And to KEEP from losing money and the time it wastes. I've seen people invest hundreds of times more than I have in a business and they fail in the first year. It would have been wiser to pay some of that investment to someone to teach them how to do it right. You can also look at what a college education costs also. Information is power to the extent by which it is utilized.

Chris Voss

I had just lost a client today over price, after discounting my day rate to start with. My daughter emailed me your post and it immediately lifted my spirits. Thanks for the reinforcement to believe in the quality of value-added service we provide, set the price accordingly, and then hold your ground. Otherwise it's a race to 0.

Why what YOU think you are worth and not what they client thinks…at $22,000 you could be leaving lots on the table. What not say from $22,000 and on the basis you will deliver a minimum of five times that.

some good advice, sometimes tough to follow, but thanks for saying it, it helps me to do it.

OK – I've watched this post for a few days now and it got me thinking: who cares how much someone makes. It's odd in this country how we “hide” money matters….have you ever openly discussed at work, how much you make? Why not???? It's as if there is some huge shroud of secrecy around what one makes. Honestly, what you make monetarily not equal your value in any other way other than monetarily.

Great content – thank you! Story top illustrate my thoughts on this:

Picasso was sitting in a cafe one day when a young women asked if he would sketch her portrait. 'Absolutely,' Picasso responded. He took out three charcoals and some drawing paper and with five minutes he had completed a very accurate and beautiful portrait of the young woman. Delighted with the outcome, she reached for her purse and inquired about the price. He responded: 'One thousand francs.' The woman was incredulous 'But how could that be? It only took you five minutes,some paper and charcoal.' Picasso answered her by saying 'one hundred francs for the charcoal and paper, nine hundred francs for a lifetime of learning how to use them.'

Hey Mary Anne, thanks for the endorsement of my book, The Identity Code. Your instincts are right about how really knowing who you are brings you to a place where you know your intrinsic worth, as well. Now, about pricing it – well, that's trickier.

I struggle with that a lot myself. Helping companies and individuals crack the code on their identities, and then apply them to all they do, is immeasurably valuable. But, it still requires pricing. I've been moving away from hourly and day-based rates and into value-pricing. And I prefer to talk that way with clients, which is more meaningful to them than the cost of increments of time.

There is a fine line between courage and arrogance, when it comes to establishing your true economic worth. All I know, is that my value isn't declining; it's growing, and so should my pricing.

Makes perfect sense, Chris.
Go get 'em!