March 3, 2010 211 Comments

Price Points

cash register Evidently, I stunned the world by telling people what I charge for a day of my time. What a great opportunity to talk about pricing, value, worth, etc. Let’s just get right down to business on this one:

  1. Charge what you’re worth. Why are you letting me define you, in either direction. You can do math. Decide what your day is worth, and charge that.
  2. Charge what you can get. I told you my day rate. I didn’t tell you my logic. I charge that much because I don’t want hundreds of takers. I want 2-3 takers a month at that rate.
  3. Charge for the value of your content. My information is worth what I charge. It saves companies money. It makes companies money.
  4. Pay what you want. You get [chrisbrogan.com] for free every day. I write posts every day. There are YEARS of ideas in here you can use to make money. Other people do. All the damned time. Other people even wrap my stuff into their courses that THEY charge for. (As long as we’ve agreed to this, hey, I’m happy to help where I can.) But you don’t HAVE to pay to read [chrisbrogan.com]. I do it for free. Have for years. Same with my newsletter.
  5. Make more than one price point: My blog is free. My books are around $20. Third Tribe is $47 a month. Most events where you’ll see me range from $99 – $500 (their fees, not mine). You want a day of my time all to yourself? $22,000. You can afford ONE of those price points, right?
  6. Never let others set your rates. You know what you’re worth. You ask for what you’re worth. You defend the value you deliver.

Did I miss anything? What the market will bear? That’s kind of built into it all.

Pricing. This isn’t black magic. It’s business. It’s commerce. It’s fairly basic.

Are you undercharging? Maybe? Can you get $22,000 a day? I don’t know. I can’t charge what Seth Godin charges for a day, or Guy Kawasaki. I charge what I’m worth.

But are you measuring against me? Maybe not a good plan.

Photo credit jo jakeman

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  • JenInBoston

    Oh my goodness, I agree so very much!

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    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.

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    Gulp! On that basis I should be charging about 4pence:)
    Seriously good point though people a terrified of price most undershoot their worth, because they don't understand it themselves and are too embarrassed to fight for a price point with a prospect. I'm with you; I can't charge your daily rate but I know mine and why I'm worth it..

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    Chris,

    Thanks for writing this. I struggle with this whole pricing thing, and these are perspectives I needed today. Thanks!

    Sean

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  • JMA

    How did this raise to the level of brining it back? This and an other one where Chris was baring his soul about what he was going to do with his available time was too painful for me, so I unsubed from all things Chris. Great guy, wonderful giver but it got to where I could think about how to make my payroll or Chris's personal worries. I hope whatever he did or does brings him comfort. Personally, I'd drop back to 19,000 a day and take 5 of them. Interesting thing is, he can learn so much from every one he does.

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