Finding The Right Price Point For Consulting

Coming from someone who has priced services from $2500/m to $200,000/m for a Fortune 500 company, 90% of agencies don’t know how to price their services. 5 steps to do it right: 1. Start with a back-of-the-napkin guess. Begin with a rough number. Something like, “$3500/month feels like a no-brainer for this.” 2. Map out your profit model. Next, outline the roles and costs needed to service that offer. And more importantly, work the math out on how many clients can each role related to delivery can reasonably handle. That’s going to tell you what your margin looks like. 3. Tinker with the structure. You’ll probably start off with your dream list of roles. You might think it’d be great to have a PM, an accounting manager, a client manager, and so forth. Then, you run the numbers and realize the margins don’t work unless you double your price. So you go back and ask, “do I really need three separate roles, or can I combine some?” That’s when you start stripping away until you reach the MVP of your offering. 4. Pitch your pricing on sales calls. You’ll get feelers for the price once you’ve pitched it a few times. With my newest agency, Profit Labs, I can tell you that after the first 4 sales calls, I already knew I had to change my pricing. Once I pitched the new pricing to three people and two of them closed, I knew I had set a baseline price. 5. Price sensitivity test your way up. As you begin to acquire new clients, you can raise your pricing and offer upsell opportunities to boost margins. The idea is to keep tinkering with your pricing and inputs until you get to what you believe is a reasonably stable team structure with reasonable capacity at a price point you can sell. Then, next time you reach capacity, try doubling your price. Don’t give up on the doubled price until you pitch it 10 times. DM me when you close your first doubled price tier so I can give you a virtual high five. Believing it’s possible is the biggest hurdle.

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