7 great pricing strategies for design experts (+ a few mistakes)

Let’s talk about the key pricing strategies for design experts when they are pricing their consulting & coaching and DFY services. I’m going to start with the consequences of pricing a service too low since that’s oftentimes the most common mistake design professionals make.

7 great pricing strategies for design experts (+ a few mistakes)
7 great pricing strategies for design experts (+ a few mistakes)

Missing out on the pricing psychology & branding

Your service has value to the buyer. If your price is significantly low, it could indicate that your service has no value. Also, your pricing affects how your clients perceive your brand and business, and what kind of clients you attract.

Thinking that low priced item is easier to sell

More often than not, low-priced items are in fact more difficult to sell. For sure, it depends on the product/service, but when selling professional services, not many want to buy low. People are investing in themselves and they want a high return, which rarely is the case with very low-priced services.

Professionals want the best, not the cheapest. The best and the cheapest rarely co-exist. If your client wants it fast, then you must factor in that too.

Great pricing strategies for design experts
Great pricing strategies for design experts

Not understanding the pricing elements

Growth eats cash, and if you constantly price low, you won’t have any margins to grow your business. Your pricing should cover your expenses to deliver the amazing service, for example, time, tools and inventory, the value your client gets, the amount of time & money you have spent to build your expertise, the cost of acquiring the customers, all your other costs related to keeping your shop open, your bonus for being a business owner; an awesome risk taker who builds something wonderful impacting the world, and then taxes.

Not factoring in the volumes required to make a great income

Regardless of what a “great income” means to you, it’s important to keep in mind what kind of volumes are required to sell services or products with a low price point. You should know the industry benchmarks to be able to tell what you can expect.

For sure, some individuals and companies totally blow up all the normal benchmarks, but more often than not, they are great indicators to calculate what you should expect.

Here’s a simple mathematic formula:

If you want to make 100k selling your 100 EUR service, you need to sell 1000 pieces. Let’s say you start from scratch and decide to take the funnel-building route to sell your service.

Let’s say your sales conversion is 1% (not uncommon at all). You need 100 000 people in your funnel. If you do organic marketing, you have most likely already given up. If you decide to take the paid ads route, then you need to calculate what it costs you to generate 100 000 leads.

Maybe you manage to get a lead for 1 EUR? Well, you’ll be paying 100k to make 100k. In this case, you’re breaking even, which COULD be a strategy if you have a back-end profit product in place.

If your lead generation cost exceeds 1 EUR (which in many cases will be the case), then you’re already bleeding.

If your conversion is less than 1%, you’re bleeding.

Let’s try the same with a 1000 EUR product.

You need to sell 100 pieces.

If you convert at 1%, you need 10 000 leads. If you generate leads at 1 EUR pop, you pay 10k to make 100k. Better, wouldn’t you agree?

This works IF you generate leads at 1 EUR pop, and convert at 1%. If you don’t, then this might also result in red numbers.

Let’s say you sell your amazing service at 10k. You only need 10 clients, and even if you convert at 0,5%, you still need only 2000 leads. Even if you pay 10 EUR pop, you will be spending 20k to make 100k, and you only have 10 clients to take care of!

Yes, that got a bit nerdy, but it’s the math you should consider when pricing your services!

Having only one high-priced service

If you only have one service at a high price point, you might be missing out on a business that is not yet ready to buy your service.

So to avoid this, you could design a Get-Foot-In service, that is easy to sell, easy to buy, and easy to deliver. This service must be linked to your main service so that the only logical next step is to sign up for your main service.

Inserting their heads into the clients’ wallets

You cannot, and should not be the one who’s deciding whether your client can or cannot afford your service. It’s theirs to decide, and the only thing you can do is to demonstrate the value they get, and what they miss out on if they decide not to engage your services.

Read: Design Your Signature Client Experience: 7-Step Guide

Procrastinating the prices forever

Procrastination is the easiest way to kill progress. Get started with a price that feels good to you, and test different pricing options until you find the sweet spot that makes you and your client. feel good about the investment.

Summary of the pricing strategies for design experts

  • Understand your value and charge accordingly
  • You’re a business owner, and your business needs to bring you cash, security, and enjoyment
  • Know your numbers and track them at all times
  • Set the price and adjust when you grow
  • It’s not your job to tell how much your customers can afford
  • It’s not your responsibility to adjust your prices to match your customer’s budget, it’s your customer’s responsibility to have the budget to work with you if they want your help!

Read also:

FAQ – Pricing Strategies For Design Experts

Pricing Strategies

What are the consequences of pricing a service too low?

When a design professional prices their services too low, it often signals to potential clients that the service may lack value. Low pricing can negatively affect how clients perceive your brand and attract clients who may not value your expertise appropriately. Additionally, underpricing can prevent your business from growing, as it limits the financial resources available for reinvestment.

Pricing Strategies

How does low pricing affect the ease of selling a service?

Contrary to common belief, low-priced services are not necessarily easier to sell, especially in the field of professional services. Potential clients looking for quality in consulting and design services often associate higher prices with higher value. They are typically willing to pay more to ensure they are receiving top-tier services that provide significant returns on their investment.

Pricing Strategies

What should design experts understand about pricing elements?

Effective pricing should cover all business expenses including the cost of tools, inventory, customer acquisition, and taxes. It should also account for the value provided to the client, the time and money spent building expertise, and include a profit margin for the business owner. Proper pricing supports not just business sustainability but also growth.

Pricing Strategies

Why is it important to factor in the volumes required to make a great income?

Understanding the volume of sales needed to reach income goals is crucial. Design experts should be aware of industry benchmarks to set realistic expectations for their business. High volumes of low-priced sales might require significantly more effort and resources to achieve the same income as fewer, higher-priced sales.

Pricing Strategies

What is the impact of having only one high-priced service?

Having only one high-priced service may limit your market, as potential clients not ready to make a significant investment might look elsewhere. Offering a lower-priced, introductory service can attract a broader client base and serve as a stepping stone to higher-priced offerings.

Pricing Strategies

How should design experts approach clients’ budget concerns?

Design experts should focus on demonstrating the value of their services rather than worrying about a client’s budget constraints. It is up to the client to decide if they can afford the service. Your role is to ensure they understand the value and potential ROI of working with you.

Pricing Strategies

What is the recommended approach to setting prices in design services?

Start with a price that reflects the value you provide and feels right for your business. From there, it’s crucial to continuously test and adjust your pricing based on market response, business growth, and financial goals. Keeping track of key financial metrics and client feedback will guide you in optimizing your pricing strategy.

7 great pricing strategies for designers a few mistakes

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