www.academy.presterafx.com

$ervices

PricingYou

r

Webinar

Pricing Pitfalls

$ ervicesPricing

Your • Countering the Pricing Pitfalls• Building a Pricing System• A Peek Under the Hood

In this webinar:

Pricing Pitfalls

Gus Prestera PhD MBAMentor | Consultant | EntrepreneurPresident, Prestera FX, Inc.gus@presterafx.com

Pricing Pitfalls

!Ooops“ ”

VALUE

is in the eye

of the

client

Consulting

& SolutionsServices

MyWhat

do your

clients value?

Peace of Mind

Productivity

Growth

Capa

biliti

es

Your Value Proposition

How do you drive that value??

Your Capabilities

YourValue

(results)

Value Drivers

(approach)

“I build websites”

“…that help clients grow

revenue”

“Our proprietary Search Engine

Optimization tools”

“Proven templates that have been A/B

tested to ensure high impact”

“Time tested process, producing 40-50%

revenue increases for clients”

• Collaboration• Inclusion• Pace

Scoping Risk & Complexity Cultural Factors Leadership

Factors

TimelineFactors

ResourceFactors

TechnicalSpecs

Assess ProjectRisk &

Complexity

Cultural Factors

• Power Dynamics• Committed/Flexible• Structured/Fluid

Leadership Factors

• Deadlines & Milestones

• Criticality• Flexibility

Timeline Factors

• SME Accessibility & Responsiveness

• Source Materials• Internal

Cooperation

Resource Factors

• ?• ?• ?• ?

Technical Specs

Common Rate Structures

Hourly Rates Day Rates

Project and Hybrid Rates Deliverable Rates

Design Services: (Hourly Rates by Role)• Instructional Design Associate: $$• Instructional Designer: $$$• Senior Instructional Designer: $$$$

Facilitation Services: $$$$ per training dayActor (video talent):$$$$ per video shoot day

Media Services: $$$ per web pageMedia Services: $$$ per minute of finished audio

Design Services: (Hourly Project Rates by Role)• Instructional Design Associate: $$• Instructional Designer: $$$• Senior Instructional Designer: $$$$• Hybrid Rate: $$$

Example:• Your normal rate: $150/hr

• Client says she normally pays $100/hr

• Client agrees that normally the work should take 100 hours

• Client is willing to pay $100 x 100 hrs = $10,000

What if you’re so efficient that you can get it done in half that time?

$10,000 / 50 hrs = $200/hr

Ask your client contacts

?

Market ScanningInformational Interview:“What trends are you seeing in our industry?”

“How has your business changed over the past

couple of years?”

“What is it about working with you that your stakeholders value the most?”

“What needs and concerns are you most often hearing

from your clients?”

“Who are your main competitors?”

“What do you think differentiates you from them?”

Check with Industry Groups

? ?

Ask colleagues in your network

?

Google competitors,

clients, pricingFollow on LinkedIn &

Twitter

Defending Your Pricing

On an Ongoing Basis Before Presenting Your Pricing

When Presenting Your Pricing After Presenting Your Pricing

Always meet to go over your pricing:• Start with business needs, requirements—check• Go over proposed solution, if applicable—check• Deliverables, services, resources, process—check• Pricing options and rationale—check

Pricing Pitfalls

!Ooops“ ”

Build a Pricing System

?!Why“ ”1. To respond quickly

2. To leverage my time

3. To gain visibility

4. To present confidence

5. To grow my practice

How do we build a pricing system?Know Thy Self

CreatePersonalBudget

Estimate StartupCosts

CreateBusinessBudget

SetFinancial

Goals

AnalyzeRates &

Utilization

Know Thy Market Know Thy Value

Gather Market

Intelligence

DefineValue

Proposition

SetRate

Structure

Upfront Preparation

For Each Project

Ongoing Basis

ScopeClientNeeds

Estimate Work Effort

Estimate Project Costs

Estimate Pricing

Bottom-up estimationGather Market

Intelligence

Gather Client

Intelligence

Gather Competitor Intelligenc

e

Consider Your Own Situation

Top-down estimation

Apply Pricing

Strategy

Defend Your

Pricing

Track YourPricing and

Costs

Gather Intelligence

Build Estimation

Models

RefineSOW

Template

Build Proposal

Assets

RefineProposal Template

Sharpen your tools

Validate Estimation

Models

Build Preso Assets

Invest in sales collateral

Let’s peek insidePRICING YOUR SERVICES M O D U L E S

1. Primer (20 min)

2. Establish Your Budget (3 hours)

3. Establish Your Rate Structure (2 hours)

4. Scope and Cost Your Projects (4 hours)

5. Apply and Defend Your Pricing (3 hours)

6. Consultant Panel Discussion (3 hours)

7. Write Your Statements of Work (launches Jun-1)

8. Build Your Estimation Models (launches Jun-1)

9. Build Your Sales Collateral (launches Jun-1)

10. Client Panel Discussion (2 hours)

11. Write Your Proposals (launches Aug-1)

12. Present Your Proposals (launches Aug-1)

13. Negotiate Your Contracts (launches Aug-1)

Presentation Formats

Talking Head Video Narrated Screencast

Narrated PowerPoint Animation Screen Text with Images

Picture-in-Picture

The Workbook

The Workbook

Slides with visual aids

Talking points covered in the course

Course outline for

frame of reference

Space for your to

write your own notes

Interviews with….

Bonnie Bell, SHRM-CPDirector, Staff DevelopmentBallard Spahr LLP

David ManningManaging PartnerPerformance Development Group (PDG)

Paul Schneider, Ph.D.Senior Vice President, Business DevelopmentdominKnow Inc. (makers of Claro)

Jeff DormanGazelles International Certified CoachJeff Dorman & Associates

Belen Bilgic-SchneiderInteractive Courseware Consultantand Communications Specialist (freelance)

Rich Waite, M.Ed.Vice President, Learning and PerformanceDelta Point, Inc.

John ShawVice President, Customer SuccessBravoSolution

Michael Noble, PhDChief Learning OfficerAllen Communications

Jim Williams, MSDirector, Talent & Organizational EffectivenessCarpenter Technology Corporation

Karen Clay Basile, MSSr. Director, LearningTyco University

How much personal income do you need?

How busy and what rates would you need to charge to achieve your goals?

What are your business’ monthly and annual costs?

The Toolkit

What are your target rate, discounted rates, and minimum rate?

What are the project tasks, resources, timeline, costs, and estimated pricing?

What questions will you ask your client when scoping new projects?

Assignments and Discussions

PackagesB U N D L E D PA C K A G E S

PRICING YOUR SERVICES M O D U L E S

Per UnitPrice

Essentials Bootcamp

$ 199

Professional Class$ 499

Master Class$ 999

1. Primer (20 min) FREE X X X

2. Establish Your Budget (3 hours) $ 59 X X X

3. Establish Your Rate Structure (2 hours) $ 59 X X X

4. Scope and Cost Your Projects (4 hours) $ 59 X X X

5. Apply and Defend Your Pricing (3 hours) $ 59 X X X

6. Consultant Panel Discussion (3 hours) $ 69 - X X

7. Write Your Statements of Work (launches Jun-1) $ 69 - X X

8. Build Your Estimation Models (launches Jun-1) $ 69 - X X

9. Build Your Sales Collateral (launches Jun-1) $ 69 - X X

10. Client Panel Discussion (2 hours) $ 199 - - X

11. Write Your Proposals (launches Aug-1) $ 199 - - X

12. Present Your Proposals (launches Aug-1) $ 199 - - X

13. Negotiate Your Contracts (launches Aug-1) $ 199 - - X

Q&A

?http://academy.presterafx.com