Don’t Leave Money on the Table: Why You Should Always Offer 3 Price Points

I have been selling consultancy services for over 23 years. There are scars on my body to prove it.

Nevertheless, I have learned a few things about pricing...

One lesson I've learned is never to offer a prospective client a single price point for your freelance or consultancy services. Instead, offer a range or bundle of services. Package A, Package B, Package C and so on.

Perhaps you already knew this, you clever freelancer you? If you do, then please stop reading and go watch another "I identify as a dog" video on Instagram or Snapchat.

For the rest of you, here's why you should never have a single price point for your freelancing or consultancy services.

Offering a single price-point forces your customer to make a 'yes' or a 'no' decision. Pretty obvious, I guess.

Unfortunately, your single price point pushes the client into either one or the other corner. They can either pay for it. Or they won't. There's no wriggle room.

That's not good.

Side Note: Your prospect may try to negotiate with you. That's always a possibility. However, it's a topic I'll come back to another time.

What I suggest you do is always offer prospects several price points for them to choose from. Prospects can then ask themselves, 'which package of services can I afford and which one looks the best value?'

Many times, the prospect will purchase more than you expected. Indeed, they often choose the most expensive version. As I explain below, there's a reason why they do this.

Another advantage of several price points is that a customer who can't afford a great deal can still buy from you. This means they get some value, and you start a business relationship. You also get the extra cash which you may have lost if they couldn't afford your higher-end services.

This is called 'win-win'. Boom!

Why consultants and freelancers don't always offer a bundle of services

Unfortunately, many consultants and freelancers use a single-price structure.

Here are three reasons why:

1. In their minds, customers will either want or won't want what they're selling.
2. Consultants and freelancers don't know much about the psychology of pricing.
3. And they don't think strategically about pricing.

So, let's fix some of these problems and make more money while we're at it.

Here's how to step by step:

Step 1: Create a cheaper version of what you sell

Start by giving your prospects a basic service so they can compare it to your standard offer (see below).

Don't do this, and your standard service offer can look expensive. Instead, if you have a down-and-dirty version of what you do, your mid-range service feels like a steal.

Think about how you can deliver some benefits of your standard package but at a lower cost. Whatever you do, however, don't downgrade the impact or quality of your services.

Instead, consider ways you can help your prospect without putting in too much time or effort.

For example, imagine a prospective client who wants to run an in-house course, but cannot afford your workshop fees. Here, you could offer to run a shorter and less expensive virtual workshop. Or sell them access to the recordings of a previous workshop.

As another example, you may offer expensive face-to-face consultancy.

A cheaper alternative would be to provide your prospects with workbooks and guides so they can do some of the work themselves. You could then support them with two hours of Zoom calls instead of your usual two-day intervention.

Step 2: Create a mid-range offer

This is your standard package. You provide this type of service all the time. You adjust the price depending on the number of days you think a project will take. However, your day-rate remains pretty consistent.

The mistake here is that without a lower-cost version to compare it to, your standard offer can look costly. Better still, when prospects check out your top-of-the-range package (as below), your standard offer becomes the sensible option.

Step 3: Create a 'gold plated' version of your services

Lastly, consider how you might create a super-dooper version of your services.

Map out the extra benefits you can provide. These add-ons should go way above and beyond your standard package. Bells and whistles might include increased access to you, personalised support, a private log-in area for clients, or free training and workshops.

In my experience, this gold-plating is often what you already provide to clients. It's the level of service you deliver when you're starting out and learning the freelancing ropes. Or when you're not disciplined with your time and give customers more than they pay for.

We've all done it.

An easy way to add extra value is by leveraging your low-cost version. Suppose, for instance, they hire you as a management consultant. You could give clients free access to your online course, plus all the workbooks and guides from your lowest package.

Another advantage of bundles is that you can always nudge those more demanding clients to take your top-of-the-range service.

You can even offer only your costliest package to deter those impossible-to-please clients from buying from you. Be warned, however, that these difficult darlings will sometimes take you up on your gold-plated version!

That's why I've got scars.?