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25d • Business & Strategy 🧠
The Pricing Conversation That Changed My Business 🔥
Client asked "How much?" I panicked. Said $600. He immediately said yes. I knew I messed up.
That sinking feeling when you realize you undercharged. The client was happy. I felt sick. He would have paid double.
THE PRICING MISTAKE
My first invoice processing automation. Client manually entering 80 invoices monthly. Taking 12 hours. At $50/hour internal cost, that's $600/month wasted.
I built the solution in 5 hours. Quoted $600. He said yes instantly.
That's when I knew. If someone says yes THAT fast, your price is too low.
THE VALUE-BASED PRICING FRAMEWORK
Stop thinking about YOUR time. Start thinking about THEIR savings.
CALCULATE THEIR CURRENT COST:
- Hours monthly on manual work?
- Their hourly rate? (Use $40-60 if unsure)
- Annual cost = hours × rate × 12
YOUR SETUP FEE:
- Setup = 20-40% of annual savings
- More complex = higher percentage
MONTHLY MAINTENANCE:
- Maintenance = 15-20% of setup fee
REAL PRICING EXAMPLES
INVOICE PROCESSING:
Client cost: 10 hours/month × $50 = $6,000/year
Your setup: $1,200
Maintenance: $200/month
FORM EXTRACTION:
Client cost: 6 hours/month × $45 = $3,240/year
Your setup: $900
Maintenance: $150/month
CONTRACT ANALYSIS:
Client cost: 15 hours/month × $60 = $10,800/year
Your setup: $2,400
Maintenance: $400/month
THE CONVERSATION SCRIPT
"Walk me through your current process..."
(They explain manual work)
"How long does that take monthly?"
(They say 10 hours)
"What would you estimate your time is worth? $40? $50?"
(They usually say $50)
"So you're spending about $500 a month on this task. $6,000 annually. My setup fee is $1,200, which pays for itself in about 2.5 months. Then you save $500 monthly going forward. Make sense?"
(They say yes because the math is obvious)
MY LEARNING CURVE
Client 1: Charged $600 (should have been $1,500)
Client 2: Learned lesson, charged $1,400
Client 3: Charged $1,800 confidently
Client 5: Comfortable with $1,800-$2,400 range
Current average: $1,800 setup + $250/month
BIGGEST LESSON
Your pricing shows your confidence. Low prices signal "I'm not sure this works." High prices signal "I know exactly what I'm doing."
Even when you're NOT confident yet, price like you are. The client doesn't know this is your first project. They just know they have a problem and you're offering a solution.
What's your pricing strategy for your first client?
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The Pricing Conversation That Changed My Business 🔥
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