💰Pricing sweet spot · ADHD Focus Founders

💰Pricing sweet spot

I've always struggled working out how much to charge.

If you listen to the 'Gurus' they will almost always tell you got to go high / premium pricing.

10 years ago it was about going low, all about volume and scaling. Profit was rarely mentioned as funding / finance was cheap.

Anyways I have never been one to listen to others.

I learned long ago that you can never assume anything.

You should let the customer inform your decisions.

When I first started my current business I went low.

It was a good strategy, I gained market share pretty quick.

But I soon hit a wall. Because as you grow you need to hire help / staff / contractors etc.

So then I doubled my price. My conversion didn't drop. Clearly I was too cheap before.

I then added a new VIP pricing plan where clients could have an account managed / done for you serviced based plan. This was awesome the cash flow boost was instant.

However all of a sudden we created a monster. At this higher plan, clients were demanding more access to us, phone, chat, zoom meetings etc. I maxed out pretty quick.

I killed that plan aside from a couple of clients that were 'low maintenance'.

To cut a long story sort the plan I ended up with was $99.95 monthly and it's self serve, you can't phone, text me or our staff. Only email support.

So be careful when listening to bros on the interwebs who tell you to always go high.

You might just end up with a Job. Unless it's an amazing product that you can deliver at scale, it could end up being a noose around your neck. Which will cause breathing problems resulting in you wearing nose strips for the rest of you life. (it's a thing).

It's about finding the sweat spot where you are profitable and can deliver at scale without things breaking.

$99.95 was our sweet spot. Anything under $100 / mth customers don't expect too much of us.

And that frees us up to take on more clients / scale.

Oh and I added one little extra tweak. If you do over $10,000 orders through our system will charge a 1% processing fee. This ment we were actually getting paid more than we were via our VIP plan, but it was more equitable as it was linked to our performance. The more money we brought in the more we got paid. #Win / Win.

Pricing will be different depending on your industry / model.

But experiment to see what works for you and your clients.

Most of started our business to be in control not be a wage slave.

And charging high retainers or VIP plans can do that.

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