This talk, given by David Gillis (@davegillis) and Ben Weeks (@ben_weeks) at FITC: Spotlight Freelance 2013, was all about practical advice for understanding and accounting for the value you add to your clients’ businesses—and pricing accordingly.

1. Adding Value
Creative approaches to
Pricing and Positioning
Dave Gillis ⊕ Ben Weeks

2. Pricing is scary

3. Pricing is a process
1. Positioning
2. Qualification & Diagnosis
3. Negotiation

4. 1. Positioning

5. How many known, suitable
alternatives are there?

6. Pricing
Power
Reputation
Specialization

9. Tune in.
What are you interested in?
What are you good at that is valuable to others?
In your arena, who are your competitors?
How many known, alternative competitors are there?
Where does your target audience hang out?
Go and experience, observe, listen to them,
doing so builds awareness both ways.
(Where are their pain points? Competition etc?
What do they think and feel about you?)
What would you like them to feel and think?

11. Reputation
(You can never have enough.)

12. Thinking Behaviour Performance

13. Experts write.
Thinking
~ Blair Enns

14. Engage with your audience.
Behaviour

15. You get more of the kind of
work you do.
Performance

16. Pricing
Power
Reputation
Specialization

17. Qualification &
Diagnosis

18. Minimum Level of
Engagement

19. Is there an allocated
budget?”
Do you have a sense of how
much you will need to invest
to accomplish this?”
Why are you going to
market now?”
“
“
“

20. Don’t take self-diagnosis
at face value.

21. Known Solution
Unknown Solution
Known
Problem
Unknown
Problem
N/A
Address known
issues
Unlock new
opportunities
Execute
roadmap

22. Light-weight
diagnostic tools
• Pilot Project
• Client Questionnaire
• Discovery Session
• Moodboards
• Street Interview Video

23. Value-based pricing...

24. Value is created outside
of your business.

25. Are you being hired to
be efficient or effective?
~ Tim Williams

26. Look for leading
indicators of success.

27. Scope of work
Scope of value:
“I will work with client to deliver the
following outcomes...”

28. Factors to consider when
setting a value-based price
• Where am I delivering on the customer’s value chain?
• How important is this to the strategic objectives of the
customer?
• What is the financial impact of the desired outcomes?
• What is the client’s cost of not solving this problem?
• How time-sensitive is this assignment?
• How sophisticated is the client?
• To what degree am I uniquely qualified for this assignment?

29. Types of Value-Pricing
Type Purpose Form
Tiered-based Dimensionalize value Multiple fixed-bids
Commitment-based
Define engagement
timeline + minimum
acceptable solution
Single fixed-bid
Usage-based Prescribe application License agreement
Performance-based Align incentives
Base fee + value
reserve tied to KPI
Partnership Align incentives Base fee + equity
... ... ...

30. Negotiation

31. The polite battle for control
• Assume the role of the respectful facilitator
• Your job is not to convince but to affirm and assert.
• Discuss to build an honest assessment of fit.
• Be willing to part ways, it's all about fit.
~ Blair Enns

32. The polite battle for control
• When it comes to money, shift gears from being
inspiring, slow down.
• Discounts: Don’t. If you must, leave it till the end, put
it in writing.
• Proposals are: "The words coming out of my mouth."
• "I'd be happy to write up a contract for your signature
• if you're telling me you'd like to hire us."
~ Blair Enns

33. In conclusion...

34. Quick recap
• Pricing is a process that involves positioning, qualification
and diagnosis, and negotiation
• Positioning is where your pricing power comes from. Think:
specialization and reputation.
• Use an minimum level of engagement to qualify by price as
early as appropriate.
• Don’t accept clients’ self-diagnosis.
• Look for creative ways to price your work based on its value.
• Negotiate by taking on the role of the respectful facilitator.

37. Thank you!
@ben_weeks
www.benweeks.ca
@davegillis
www.teehanlax.com