Building A Pricing Strategy Around Client Needs

Price isn't just about a number—it's about the mental model that supports it. 🧠 When OpenStore approached us about OpenDesk—their AI customer support tool for eCommerce brands—they faced a classic behavioral challenge: pricing doesn’t exist in a vacuum. The behavioral POV on value is that it’s subjective and created in the moment. That was true here, too. It wasn't actually the price point that was holding them back. It was the invisible mental accounting happening in customers' heads. 😬 Merchants mentally categorized support tools as expenses, not investments. This mental accounting created a pricing perception problem. When something falls into your "expense" bucket, your goal is to minimize it. When it's in your "investment" bucket, you evaluate ROI instead. 💡 When we reframe the value proposition, willingness to pay changes. Instead of "better customer support," we positioned OpenDesk as a "customer retention driver" – shifting its category from cost center to revenue generator. With this new mental model established, we designed pricing strategies that reinforced this investment framing: 💲 A hybrid model combining subscription + per-ticket charges that balanced predictability with value 🔢 A usage-based option with an interactive calculator that made total costs transparent—similar to how merchants evaluate ROI on other investments 👥 A per-seat model that simplified budgeting while aligning costs with team structure Curious to see where they landed, or to get ideas on optimizing product positioning or pricing strategy? 👇 Check out the case study in the comments. #BehavioralDesign #AIStrategy #ProductPricing

The top 1% of consultants leverage a powerful psychological pricing trigger: "Pay me based on the results I generate for you." Revenue-share style agreements are more common in service businesses, but "gain sharing" might be the consulting industry's best-kept secret. Why it works: • Zero risk barrier removal: Clients won't face a downside if you fail to deliver. You've removed their biggest objection to hiring you • Skin in the game: It's a signal of extreme confidence in your abilities when you're willing to bet on yourself • Value alignment: Both parties are now focused on the same goal. Some of the most sophisticated players in the game understand that the highest fee potential comes from tying compensation directly to results. When you tie your compensation to performance, the upside potential dwarfs typical flat-fee arrangements. A percentage of significant growth can outperform even the highest monthly retainer. When you're both "eating what you kill" you're partners, not vendor and client. The focus shifts from "did they send the deliverables?" to "did we move the needle?" Honestly, most consultants run screaming from this model. They love the safety net of getting paid the same amount no matter what. Others don't have the confidence (or ability) to prove their work delivers. To pull it off, you need to: • Know exactly how to track ROI with zero ambiguity (dashboards are your best friend) • Set proper attribution and baselines at day one • Get comfortable with delayed gratification • Have enough cash to bridge the gap before the big paydays The paradox is the more you NEED the security of fixed fees, the less ready you are for the exponential upside of gain sharing. But the consultants who cracked the code make millions while everyone else debates hourly rates vs. retainers on Twitter. What's your pricing model? And more importantly: Would you bet on yourself?

In the past 8 years, I have helped consultants go from struggling to sell their expertise to closing 6 figure deals… In the beginning most consultants had this problem: Their offer wasn’t clear enough to make a decision maker say “yes”. Here’s how I help my clients fix their offer (this has generated 10+ figures in revenue for them) 1. Solve one painful problem. If your offer tries to do everything, it won’t stand out. Pick one problem your ideal client needs to fix NOW. NOT later, NOT someday, but NOW. 2. Make the outcome clear. No one pays for effort. They pay for results. Instead of saying, “I help with leadership development,” say:  “I help companies retain top talent and reduce hiring costs by 30%.” 3. Tie your offer to money, risk, or time. Businesses spend money to make money, cut risks, or save time. If your offer doesn’t connect to one of these, it will feel like a "nice to have" instead of a “must have”. 4. Price based on value, not effort. If your solution helps a company make or save $100K, charging $5K isn’t just underpricing, it’s making them doubt the quality. Charge in proportion to the impact. 15-20% of the ROI you bring in is a good start. 5. Test it in the real world. A great offer isn’t built in isolation. It’s refined through conversations, objections, and feedback from actual buyers. Get in front of decision makers, listen, and adjust. Most consultants spend months guessing. The ones who win get into the market, adjust fast, and keep improving. Stop guessing and start landing 6-figure deals → https://lnkd.in/ezG6qcTQ