Real Value Pricing Example For Client (Lusha)

Key Takeaways

last week I got a question from a student who asked me do you have an example of actually how you ran a value pricing conversation and I said yeah even better I can actually show you the presentation I used when I pitched a thirty thousand dollar project and so today I will actually want to share this with you it's gonna be super cool let's rock hey everybody what is up so if you've been watching videos on YouTube about the value pricing conversation you might be confused to be honest I'm a little bit confused myself when hearing those videos especially from Christo and Blair and when they explain the process or the conversation about how to you know you show them that you're gonna help them make a million dollar and then you say something like oh if I'm gonna help you make a million-dollar then consulting agencies usually charged this percent so it makes sense I would say I don't know to me personally it sounds a little bit confusing it I don't feel comfortable exactly running the conversation exactly like this with my clients however I do have my own version of how I run this conversation and today I want to show you exactly how I did this so a little bit of context before we're gonna jump into the pitch presentation I the presentation that I'm gonna show you I presented it to a client I've already worked with them in the past I've build them a website and after a while I always do kind of a follow up conversation with my clients so like a year after we finished the website I gave him a call what's up let's go to lunch together and just hear what's up so I went to lunch I didn't plan to pitch them anything I just wanted to hear how they're doing and actually I was so I was hearing about how the company is growing and everything we're talking about a startup company based here in Tel Aviv Israel and actually so he was telling me how they're growing really fast and they're trying to get to 1 million dollar monthly recurring revenue so 1 million dollar every month that the company is going to make that's their goal for this year it was pretty ambitious and then he was actually telling me you know why why won't you come and help us do this let's think about how you can help us do this and I wasn't trying to sell my services but we just you know they loved working with me and they were like let's try to think about how you can help us reach that goal so I went home and I kind of brainstorm about what my capabilities are where they are in terms of business and what can I do using my unique skills to help them hit that goal and then I called them up I was like I have an idea for you I want to come in and pitch it to you so I came to the office set with the two founders and I show them this presentation so let's dive into it and see how it goes so basically it was something like this I called this what I will do for them basically creative management services so I kind of invented a new role called virtual chief creative officer and that's basically what I pitched them so I started with this what if their goal and this is based on what they told me so their goal is to reach their next milestone which is $1,000,000 mr rmr our cents for a monthly recurring revenue as soon as possible while creating a world-class brand so again I'm rephrasing to them what they told me over lunch and I used the MailChimp example to show how a company which is by the way MailChimp is bootstrap company that went from being kind of a side project of a company to being like almost I think maybe a billion-dollar company so I think in 2017 either they were making 400 millions or something like this and I wanted to show them kind of visually the transformation between a brand that was pretty small and yet pretty small in 2019 and how even visually the brand became kind of world-class and as they go and it's kind of easy to see this visually here from something that's a little bit more let's call it salesy with screenshots to something that is a little bit more high-value artistic something like this because I knew that that's the kind of transformation that they were looking to do so I kind of showed them visually what the promise is now of course I'm not promising to help them you know reach 1 million dollar every month and I'm not promising to turn them into MailChimp but I'm saying that's the focus I understand that that's where you want to go and this is our goal too gather my working with you is here to help you reach this goal now then I went on to explain how I do things differently so my core offering and what I'll show you right now is based on feedback that I got from my clients when I surveyed them about what's so great about working with me so this is exactly how I work with them so one of my big biggest values for my clients is coming up with ideas and insights because I work with a lot of companies in the startup industries and I have my own sauce company or at least I had back when I was pitching this I have a wider perspective than they have because they're only running their own company so I can bring them insights and ideas that they can't think about because I have a wider perspective the second thing is because I'm a good designer I can ensure the creative quality of the work so while they can you know hire other designers they wouldn't even know who to hire because they don't understand design very well so I would help them ensure that who whatever sources and resources that we're going to use I'll make sure that it's the in you know passes my high standards of design and the third thing was that I am really good at helping them manage creative processes so from video production to design sprints and growth hacking helping them go through these processes and kind of facilitate that for them that's where a lot of my value is and again oh these three insights they came to me by me serving serving my past clients and understanding that they told me that we love working with you because you do these three things great right so basically I showed this back to them here's how here's what I do best and here's how I'm going to help you now practically let's get down to business and let me show you what I'm gonna help you achieve during the third quarter of 2018 so this is what we're what we're going to achieve now note I'm not talking here about deliverables like a website or this and that but about outcomes like what will your company have when were the I was pitching them like a quarterly engagement so three months so here's what you'll have in three months so number one I'm going to help you build an in-house design team so I will actually help you hire a designer and I will mentor your designer so that's the first thing the second thing is I'm going to help your company set up a growth hacking process basically meaning that we're gonna come up with experiments for you know optimizing their conversion rate on their website and then I'm gonna help them execute it so I will design the a/b testing new landing pages and these kind of things so I'll do that for them I'll create both the process of coming up with what do we need to test and also help them execute in terms of I will design it and I will review the analytics with them and help them come to an agreement about here's you know this work this doesn't work and hopefully if we'll do this for three months when I increase your conversion rate and then the third thing is we're gonna produce a video because they had a nap hype otha says that if they'll create like a very fancy video explaining their product it's gonna help conversion rate so I'm gonna help them hire a production team come up with the brief manage them creatively because again they're not creative people they're they're fun technical founders of a company and they want a creative person like me making sure that we're gonna create an awesome video and then the the first part was to just create some more brand touch points like adding gifts and all kinds of cool things in their collateral so those were kind of like tiny tiny other things so basically these are the things that I'll help them you know design note here that we're not talking here again as I said about deliverables this is so this is things that are going to happen in terms of I'm not saying here how many experience you know growth hacking experiments we're gonna do or exactly you know what brand you know brand application we're going to do but all these things are things that we're gonna be working on in these three months and then I'm talking about the cost so I'm basically stating here are the things that we're gonna do and here's the cost and the cost here it's an new Israeli shekel so 105 it's it's something like thirty thousand US dollars and then I am showing them the timeline so basically here's how I'm planning to progress on each one of these basic outcomes within the three months so this is what the process is basically going to look like and what you can expect and that's it let's rock and roll so I want to break this down a little bit so one thing that is very important is the goal that I stated at the beginning so the first thing remember that is what we're talking about is reaching 1 million dollar every month so that's they already know that this is I don't know two times what they were making it at that point and they were really looking to achieve that of course if they all achieve this is a huge milestone for them it's 12 million dollars every year of course this is a huge sum of money which oh you know puts the the price that I've put on these things in perspective now if they actually believe that these things these outcomes that I shared which by the way you know I came up with them creatively but discussing them and they're discussing them with them they actually truly believes that those are the things that they need to hit that goal so understanding that you know buying those things which can increase the the chances of reaching their goal dramatically for $30,000 and again the goal is 12 million dollar every year puts this in perspective now if you're thinking you know if you're trying to calculate is this worth it for me I'm thinking from their perspective so the first thing let's think about hiring a hiring a designer what they know is if they're not gonna use me for hiring what are their alternative or they're probably gonna go to some headhunting agency and then they're gonna have to pay the fee so that usually is something like you know one or two months of salary for design so all even that is already like $10,000 right with with the average salaries of you know startup designers based in Israel so it's already something like that just the hiring right so now we're thinking about the growth hacking so imagine we're gonna do a/b testing and experiments for increasing conversion rates for three months you can think about if what if we only succeed increasing conversion rate in 10% and think they were making a lot they were assuming they were making like five hundred thousand dollars every month increasing the conversion rate you know by 10 is already fifty thousand dollars so even if the results of that process alone is gonna be ten percent and I thought we could make maybe fifty percent already that's fifty thousand dollars so you're when you're thinking about these things and how they're gonna affect their business you can see in your head that the in any case it's the price is pretty legit for it so this is how I pitch this to them and I have to say they did initially looked at the price and they said you know what it's expensive let us think about this and they called me the week later let's rock and roll let's do this and it was a pretty successful this was an experiment for me the first time that I offer these services like this but this experiment was successful not everything happened exactly like we wanted I did hire a designer we did start the a B testing process we did not end up producing a video they wanted to delay this but once we finished those three months we did do another round of it so let's say it was successful enough and had return on investment enough for them to continue with another sequence of two quarter four after quarter three so that was it I hope that seeing how I pitch this helps you frame your own services when you're pitching them to your clients let me know in the comment below and I will see you on the next