Do You Adjust Your Pricing

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Price Too HighMany of us have been there, caught between sticking to our more than fair pricing for our services or having to do quite a hatchet job on them to please and finally land that special client.

This is the exact position I find myself in right now. Little background for you – I’m President & CEO of my own internet marketing and software development company. My sister works for me, and probably like most of you right now we have a virtual team of people who I hire on a per project basis as consultants or freelancers; which will be changing in the near future to actual office space and full time employees.

I stopped dealing with offline clients recently because it started to become more of a babysitting job than actual work I was enjoying. Too much haggling & chasing, I don’t chase people, I don’t in my personal life and I won’t in my business. My sister is the creative person and I’m the technical brains, so recently she came to me with an idea for a case study involving a video production project and wanted to do some special research. I said yes and she was off to begin working on it.

“Just when I thought I was out… they pull me back in.”

As soon as she starts a guy contacted her and wanted a very specific video created all about him for an upcoming event he was giving. It was going to be seen by royalty, king and queen of somewhere I forget, but it needed it to be perfect and it needed to be professional. Long story short, he LOVED the final product, his team LOVED it, and apparently this guy is a really big deal.

It’s kind of funny how things just fall into your lap sometimes! It turns out this guy is the go to guy for Hollywood Celebrities, Celebrity Athletes and Royal Families. He’s worked with: Britney Spears, Al Pacino, Pierce Brosnan, Robin Williams, Halle Berry, Kevin Bacon, Ashly Judd, Susan Sarandon, Garry Sanise, Jason Brown, Brad May, Ron Artest and Anthony Prior just to name-drop a few.

My sister is telling me all of this and now I’m starting to drool; I have always known this is where I’m going in life, hob-knobbing with stars and such, heck I already have my luxury yacht all picked out and decorated with a small price tag of 25 million dollars. So where am I going with this, well, seems our hero has many projects coming up and he wants US. That’s right; he has stated (in writing) we are his new go-to company, and that he has already told many of his clients about us. He wants to promote us on all his marketing, media & sites, can anyone say freaking LINK JUICE BABY!

He has a private presentation to the Spanish royal family coming up, and has landed an article in a sports magazine (making this sports nut go bonkers), among many other events and he wants to bring my company along for the ride. And when he says events you are talking 250,000+ or more people attending some live some televised, some online. I know you’re confused right? Sounds like a problem many people would love to have.

Well, the first video went so well he immediately had another project for us. I had to come up with a great price for him on a 15 video project. Here we go. In a nutshell, for what he wants I would usually charge for the entire project between $12,000 and $15,000 depending on certain criteria (video length, script writing, graphics etc). Which is fair, you’re talking images, voice-overs, research, SEO optimized YouTube channel and a lot more. BUT I REALLY WANT THIS GUY, I don’t want to lose him, so I came up with a more than fair break: Just under$4,000 for everything, partial up front then half payments at last 2 milestones, 60 day max delivery, and he does a video testimonial for my company that I own exclusive rights to and can use any way I choose on any sites that I own or in any of my marketing material.

Which is more than fair in my opinion. It also means I have to drop EVERYTHING I am currently working on and cancel a mini vacation I was planning to get away and clear my head for a few weeks. Not to mention I’m probably going to have to hire some temps to help with certain portions of this.

His response it’s a little too high; SIGH…. here we go again, Halle Berry is paying you $25,000+ a pop and you’re quoting me too high. But at some point it’s just not cost effective anymore. What’s my gain if I charge him $250.00 for a video that costs me $300.00 to create and produce? Sometimes the gain is not monetary it’s personal and you need to look beyond the surface to the big picture to really see it. So pretend you are me, comments please – what would you guys do? Would you price drop again and land this multi millionaire or stick to your guns at the quoted price?

Not that easy right? It’s not always the black and white that’s the issue; it’s the many grey areas in between. But I’m not stupid, I’ve been around the block a few times and I know this guy’s loaded, my price is probably his weekly food bill. I also know where my company is heading and I’ll get there without this guy, BUT he can help get us there so much faster.

So what did I do?

Well I did what most of you would do (and if you say no you’re lying), I price dropped again per video but on only 9 upfront instead of the 15 he wanted, AND LANDED HIM! I wasn’t about to let him go that easy and the exposure this guy can give us is priceless.

His response: wait for it, wait for it…….
 
 

PERFECT! LET’S GET STARTED!
 
 
My birthday’s coming up and I for one can’t think of a better way to celebrate!

Later Guys – I’ve got work to do!
 
 
 

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Andie Parkes

Internet Marketer at Andie Parkes
Successful Internet Marketer for over 5 years. Programmer Analyst and Database Programmer & Automation Manager for 15 Years. I enjoy helping people learn and succeed online. Keep honesty foremost in everything you do and don’t be afraid to tell it like it is.

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