In this blog post, I’m going to convince you about why do you need to raise your prices at least 4 to 5 times off what you’re charging right now.
How to raise your prices tonight:
While talking to a lot of agency founders, I realized there’s a bunch of different buckets when it comes to pricing.
Founders on the low end will charge about 25$ an hour, and some of the biggest agencies charge 300$ an hour, making a huge difference in-between.
Honestly, there’s not much difference between charging $75/hour and $150/hour if we talk about what it takes to close the deal.
Therefore, if the above is true, there’s no reason for a 75$ 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.
Let’s say you’re charging $25/hour and you’re down at the very bottom tier. There’s not much difference between you and a 75$ dev seller.
So why not pitch the next project at that price?
Have any questions? Need help with your own agency? Feel free to contact us
So go out! and instead of charging 25$ an hour, pitch the next guy (whoever it is) at 75$ and keep doing that.
It’s okay to have your close rate two-thirds lower, because 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 to the chain.
More questions? Feel free to post them in the comments, I’ll be answering them the best I can.
Thank you, and see you next time!