Custom Quotes vs. Package Pricing, Part 2

Providing custom services and pricing allows you to focus on helping people solve their specific problems. Over time, and after working with different clients, a business owner learns more about their ideal client. The process keeps getting clearer and they witness the results their clients achieve after working with them. Once they are more familiar with these specifics, my clients often shift to a package pricing strategy.?

So why isn’t every business owner choosing to work with packages? Let’s look at some of the pros and cons of package pricing.

A more efficient marketing and sales process.?

The client can view packages spelled out on a website and know exactly what they are getting for the price. If you’ve explained it well they will see the value and focus less on price or hourly rate.

It’s easier to create marketing content around a package with a set process, and clear deliverables. Clients feel like they’re walking away with something tangible.

A set package price simplifies the proposal process.?

Package pricing can be a “set it and forget it” strategy. I’ve had clients go from agonizing over proposals for hours, to using a system to automate the process, sending documents in minutes.?

Having packages for your services eliminates the inner mental dialogue of questioning their value, or whether the client can afford it. Once you set a package price, you don’t have to go over it again. There’s no going back and forth on pricing based on your level of confidence that day.?

The discovery call becomes simpler.

By the time your potential clients get on your discovery call, they have most likely done their research. They know the price before you talk, so the initial selling has technically started. This elevates the call to a qualifying call, or “good fit” assessment for both of you.

Pricing is generally one of the first things I do with my clients. We decide on packages and pricing,? then load all the details into their CRM (Dubsado is a top favorite for creating VERY QUICK proposals when packages are pre-defined).?

I’ve worked with many digital marketing strategists and services around content management such as social media management, blog writing, and email newsletter management. They are perfect for a set package strategy.?

A few weeks ago we did a blog about eliminating decisions in your workday. Having set packages with package pricing will help you eliminate a LOT of decisions…..

Scaleability.?

Set packages - with known processes, deliverables, and resources - help business owners scale more easily. They can periodically refine and automate those processes and deliverables, allowing them to serve more clients more efficiently, and ultimately generate more revenue.?

Transparency.?

Package pricing has no gray areas. A potential client knows exactly what they are getting, and the business owner has healthy boundaries around the deliverables.

Competitive advantage.?

In my last blog about custom pricing, we noted that offering custom projects could be a competitive advantage. It’s the same for offering set packages. Having set packages and package pricing allows you to highlight unique services. It’s all about how you position yourself and who your competition is. I strategize with clients about that “game-changer component” -? looking at what others don’t offer and clearly positioning it in their package.?

So, how do you decide whether custom pricing or package pricing is right for you? There’s no correct answer.?

Here are a few things to consider:

What type of service are you offering??

As I mentioned earlier, social media management is often easy to put into a package. So are bookkeeping services and coaching. Services like interior design or consulting services with varied deliverables are often better suited to custom pricing.?

Who is your ideal client or target market??

Some clients expect or prefer a custom service. They want to feel special and to know that you’re treating them like no one else. Others will prefer the transparency and simplicity of package pricing.

What are your current revenue and scaling goals? Can you reach those goals with your current pricing strategy? I’m happy to go over this with you on a complimentary call.

P.S. Ready to stop spinning in place and get to the other side of your goals? Here are several ways I can help:

1. Download my free resource Show Your Schedule Who's Boss - these tips and strategies will help you take control of your time. This is the first step in taking control of your business - kathleen-lawson.com/show-your-schedule-whos-boss
2. Join our next CEO Power Planning Session and spend two and a half hours ON your business. During this facilitated workshop, you’ll set and prioritize your next 12-week goals, break them down into an executable action plan and create a resource plan? - kathleen-lawson.com/ceo-power-planning
3. Schedule a Laser Consult Session. This is a one-time 90-minute session for the entrepreneur who needs expert strategic guidance. Use this time to work through an idea, develop an executable 12 week action plan, streamline or create a process or system, or improve routines around daily and weekly execution. kathleen-lawson.com/laser-consult