Over the past few weeks I’ve been talking to a lot of agency owners about profitability and one of the best ways to be more profitable is to raise prices. I’ve stated publicly that inbound marketing agencies are NOT charging enough based on the value of our deliverables, but the challenge remains—how do you raise prices especially with companies you’re already working with?
More and more agencies are considering going to points based pricing. It makes a lot of sense. You don’t want to charge by the hour and you don’t want to be arguing with clients every time something takes longer than they think it should take to deliver.
However, points based pricing is not a magical answer to a more complicated challenge. Simply converting an hour of work into a single point is not going to fool anyone and it’s not going to help you get paid true value for the work you're doing.
Here are some considerations as you try to decide to use points or not to use points.
After sales process the ins and outs of pricing is one of the most popular questions from inbound marketing agency owners.
How do we price our inbound marketing engagements? There are a number of tricky elements around the answer to that question.
The first is you need a level of investment that your prospect is willing to pay and next you need a level of investment that delivers a profitable engagement for your agency.
So maybe the real question is not how to price, but how to balance those two seemingly conflicting objectives.
If you’re running an inbound marketing agency or transitioning from a more traditional agency into an inbound agency, then you’re getting a lot of advice from a lot of different people. You job is to sift through the advice and adopt what works for you and your agency.
One of those questions is, “Do we publish pricing on our website?” Once you start looking some of the more popular and successful inbound marketing agencies you see that a majority of them DO publish pricing on their site. However, before you make that decisions, you should be aware of the pluses and minuses of putting pricing on your site.