In this blog post I’m going to convince you why you need to charge at least 4 to 5 times what you’re charging right now.
I’ve been talking to a lot of agency founders and it seems like there’s a bunch of different buckets when it comes to pricing. Some of the founders on the low end will charge about 25$ an hour, some of the biggest agencies charge 300$ an hour and then there’s a bunch in-between.
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It’s very clear now that there’s not much difference between somebody who charges 75$ to someone who charges 150$ an hour, in terms of the amount of work it takes to close the deal.
So, If the above is true, there’s no reason for a 75$ agency to exist. If you’re charging that amount an hour for your development services, you’re already in the mid-tier, so you might as well charge 250$ now.
I’ll even go further; If you’re charging 25$ an hour, and you’re down at the very bottom tier, there’s not much difference between you and somebody who sells their dev work at 75$, so why not pitch the next project at that price?
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Go out and instead of charging 25$ an hour, pitch the next guy (whoever it is) at 75$ and keep doing that. Even if your close rate is two-thirds lower, if you’re 3 times your price, you’ll still make the same amount of money, and since industry’s average close rate is about 25%, you won’t lose any money, you’ll make more.
That’s your homework assignment for today. The next inbound lead you get, you’re not charging 25$ an hour, you’re charging 75$, and for the next you’ll charge 125$, etc. This way you’re trading up the chain.
If you have any questions, feel free to post them in the comments of the video, I’ll be answering them the best I can
Thank you, and see you next time!
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