Getting to the ‘right’ price is one of the major conundrums facing all Accountants and anyone who sells intellectual property and information products and services.
Certainly ‘time based billing’ does not even come close to valuing what you know and valuing the impact your IP has on your client. After years being involved in creating and selling information products and services (around $170M in sales so far) I think there are just 3 things to consider.
- Your value belief – how you value yourself and what you know
- Your value contribution – the difference you make to your client when they implement what you know
- Your clients value perception – the way you articulate your value to your client
If you have high value belief and high value contribution yet you do not explain to your client the impact you are making (area 1 in diagram) then you will not get to the right price. If you have high value contribution and you explain it well yet your self belief is low (area 2 in diagram) then you will not get to the right price. If you have explained your value to your client and you have high value belief yet what you do doesn’t really make a difference (area 3 in diagram) then you will not get to the right price.
The objective is to grow your self belief, make a difference to your client, explain eloquently the difference you are making and you’ll get somewhere close to the right price – area 4 in the diagram.
And the biggest thing in pricing IP based services/products to remember….the only right price is just before NO!