Value-Based PRICING: Set the web project price according to value. Not an hour

"Doing almost dead ... Why is rich slowly?" The problem that the web people encountered But didn't dare to speak

Are you a freelance or agency to make a web that is stuck in this clutch? Accepting projects to project The price according to the work hour, the faster the work is, the more talented, the more experience ... it turns out that "Income per project decreased" because it takes less time. Some customers bargain like buying things in the market, saying "Why is it so expensive?" Without looking at the business results you created at all.

You are tired of having to write down the time (Time Tracking). Every step feels like "Digital laborer" that has been hired to work as ordered instead of a "consultant partner" that helps the customer's business to grow. You see other agencies calling a high price for similar work, but I wonder if "How did he do?" If these images are your real life ... You don't face this problem alone. And this is the beginning of the most important change in your career.

Prompt for illustrations: Freelance images or agencies are sitting in front of the computer full of beautiful code and design. But the expression looks tired and serious There is a large watches melted behind. Conveys a time limit

Why do you "calculate the price" is a scary trap?

Many people start by hourly rate or Cost-PLUS (cost+profit) because it is "easy to look" and "safe". It is a tangible way. Explain to customers easily. "I work for 100 hours. X baht per hour is this money." But I don't know if this method is laying the most dangerous trap for your own career.

The main reason that we are still stuck with this method is:

• Industrial familiarity: It is a "continued way" until it becomes a standard without us asking.
• Fear: We are afraid to talk about "money" and "values" with customers. Afraid that if calling a high price And the customer will escape to find another cheaper other
• Lack of confidence: We are not sure that it can actually create a tangible results for customers. Therefore choose to sell our "time" instead of selling "results"
• Wrong focus: Price calculation according to hours, both us and customers focus on "INPUT" that is "time to spend" instead of "output", which is "the value that the customer business has received". This is the most important difference.

Sticking to this model is no different from limiting your own income ceilings. And reduce the value of our profession to just the "labor" that everyone can hire

Prompt for illustrations: Infographic images compare between the weight of the weight that says "Working hours" with the other side that is rushing into the sky and says "Business results" to convey that we are giving weight to something wrong

If letting it be like this ... What will happen?

Ignoring this problem and still walking on the same path, it doesn't just make you "rich slowly", but it affects domino on both your business and life:

• Limited ceiling income: You can't work more than 24 hours per day. Regardless of how good and fast you are Your income is limited by time.
• Attracting the wrong customer type: You will attract only the customers who are looking for "cheap things." They are just looking at you. "Contractors" are not "strategic partners" and ready to change you immediately if you find someone who gives a lower price.
• Burnout: You must work harder to maintain the same income. Or have to accept many projects at the same time to survive Is the formula of fire
• Cannot grow (inability to scale): When you sell time You can't easily hire someone to help. Because the profit per project is too little Your business will grow up with your tiredness.
• The endless price war: You will be dragged into the battlefield of the price. Which only has a price cut back and forth Until finally almost no profit And the sad thing is Customers will start asking about The difference between the agency and freelance by using "price" as a judge, not "value"

Letting yourself be stuck in this circuit Is like running on a treadmill that is getting faster But didn't take you forward at all

Prompt for illustrations: The graph of the line shows "Working hours" rise, but the "net profit" graph runs almost parallel to the ground. There is a picture of a web swaying beside the graph.

The solution is "Value -Based PRICING" - set price according to value, not time.

The only solution that can break the wall is to change the paradigm shift from the sale of "time" to the "value" sales, also known as Value-Based PRICING. This model is to set the price based on "value" or "impact that your project will create the business of customers.

The main principle is changing conversations from "How much is this website?" How can this website create value for your business? "And this is the point you have to start:

1. Change the mindset yourself first: You are not just a web maker. But you are the advisor that uses the website as a tool to solve business problems for customers.
2. Learn to "The Value Conversation": This is the most important step. Before talking about design or features You have to ask the correct question to dig to meet the hidden "gold".
   • "What is the number one business goal of this project?" (For example, Lead, increase sales, reduce costs)
   • "If this new website is successful What numbers will we measure? "(For example, Lead per month, conversion rate, average basket value)
   • "How much is that number now? And what is the new goal? "
   • "How much is the value of the lifetime value for your company?"
3. Quantify the valu: Take the answer to calculate as money. For example, if the customer says that the new website will increase the quality of the Lead of 20 Leads/month and 1 in 4 of Lead can be closed (5 new customers). One customer has 100,000 baht.
4. Set your price (Anchor Your Price to Value): When you see that this website is worth 6 million baht per year, the project setting at 300,000 - 600,000 baht (5-10% of the first year) is no longer unreasonable. It is a worthwhile investment for customers. Experts like Blair Enns, Win without Pitching Manifesto, is the pioneer of this concept that revolutionized the agency around the world.

The easiest starting is training. "Discussions about value" with your next customer Try to change from the presentation that you will "do some" as a present that customers will "What are you getting?" This is a guideline that Hubspot recommends for the agency that needs sustainable

Prompt for illustrations: simple infographic 4 steps: 1. Mindset shift 2. Value conversation 3. Quantify valu 4.

Examples from the real thing: agencies that increase the project 5 times by changing one question.

Imagine "Webcraft Agency" (assumed name) as an agency to make an e-commerce website on the webflow. They are very skilled. But stuck with the price of the project Which is calculated from internal working hours Resulting in a project price of about 300,000 baht per project

The original problem: One customer is a fashion clothing brand that has an online sales of 1 million baht/month. Need a new website, webcraft almost bidding 300,000 baht according to their original standards.

Change: This time, the team leader decided to try Value-Based Pricing. He began to "discuss value" and get important information:

• The current website has only 0.8% conversion rate.
• AORAGE Order Value (AOV) is 2,500 baht.
• The webcraft team has analyzed that With the improvement of UX and checkout steps, they are confident that the conversion rate will not be 1.2% easily.

Calculated results:

• Increased revenue: 0.4% conversion rate will generate increased sales 500,000 baht/month or 6,000,000 baht/year!
• New proposal: instead of offering 300,000 baht. Webcraft offers a project price at 1,500,000 baht (25% of the value created in the first year) by presenting as "Investment project to increase sales of 6 million baht"

Last result: Customer approved the project immediately. Because they do not see it as "cost" 1.5 million, but "investment" that will generate a return of 6 million baht. Webcraft makes a profit from this project 5 times more than the original work. And the most important thing is to upgrade the relationship from the "contractor" as an indispensable partner " . Is the skill that changes the game completely

Prompt for illustrations: Before & After comparison of 2 types of quotation is an old -fashioned quotation that works with the price of 300,000 baht. The right side is a new quotation that emphasizes "Projectted Roi: 6,000,000 baht" and offers prices at 1,500,000 baht with approval marks.

Want to follow, how to start? Checklist for Agency and Freelacer (can be used immediately)

Reading to this point, probably wanting to do it, right? This is the checklist that you can apply immediately to change to Value-based PRICING:

1. stop! Price announcement on the website: Take the price of the package or the hour of the hour from your webpage immediately. Because it makes customers focus at the price from the beginning And close the opportunity for you to talk about value
2. Prepare "Questions to create value": Write a list of important questions that you have to ask all customers to find the Business Value (see examples from the previous topic). Practice these questions until it is natural.
3. Create a new proposal: Stop sending a quotation like an invoice, but creating a Proposal that tells the story. With the following structure:
   • The current situation (The Current State): Summary of the problems and challenges that customers are facing.
   • The Future State: Explain the "success" of this project. With numbers that can be measured
   • The value of success (The Value): Calculating and showing how much the Future State has created a business value.
   • Your Investment: Place your price here. So that customers see that it is just a fraction of the value he will receive
4. Proposing 3 options (Tiered Proting): Instead of offering a single price, propose 3 packages such as "Fast Growth", "Dominator", "Market Leader" with different scope and value of the delivery value. This method will change the question in the customer's head from "Will you hire?" Which package will be chosen? "

The change to use this model also helps. Measure the return of investment (ROI) of the website is clear and more concrete for your customers.

Prompt for illustrations: Beautiful and easy -to -read images. Each icon: 1. Cheap price tag icon 2. Notebook icon with questions 3. Proposal document icon 4. Podium icon 1, 2, 3

Questions that people tend to wonder (And the answer to clear all issues)

A major change often comes with questions and concerns. I gather the most common questions to answer here.

Question: If the customer refuses to tell the business number Or he doesn't know how to assess the value?
Answer: Highly possible. Especially with small businesses Your duty is to help him think! Try asking about "Leading Indicators" instead. For example, "If someone fill out 50 people a month, would it be good?" Or "If the new website helps reduce the time that the admin has to answer repeated questions for 10 hours a week. How much will it save cost? "If the customer still does not cooperate or does not see the importance of business results ... he may not be an ideal customer for this model.

Question: Then if the project has been done Didn't get the results as talked about? Is it risky?
Answer: This is why we set the price as a "proportion" of the expected value, not 100% of the total value. Your price is a compensation for "Expertise in creating opportunities" to produce that result It is not a 100% guarantee (which no one can do). However, you dare to tie yourself to the customer's results. Is something that creates enormous confidence

Question: Can this model use the Corporate Website that does not create direct sales?
Answer: Of course. "Value" is not always sales. For corporate websites The value may be in the form of:

• Creating images and reliability (Brand Equity): which affects the decisions of partners and investors.
• Attracting quality personnel (Talent Acquisition): How much a good website helps the company to get a better person and reduce the cost of selection?
• Operational Efficiency: Such as the investor website that provides complete information How to reduce the time that the team has to answer the question? Try to compare the cost of creating organization websites. In a different perspective, go out to see.

Prompt for illustrations: Large question icons (?) There are small people standing around and thinking with a framework in various questions floating.

It's time to return your value: Summary and move forward.

We have traveled very far from being a "hiring hire" who was pressed as well. "Working hours" to be a "consultant partner" that creates growth for customers and set prices from the real "value". But it is a change in business philosophy. It is a declaration that your work is more valuable than just the time. It is to take the success of the customer as the same goal as your success.

This change may be scary at first. It may cause you to reject some customers that do not match this model. But it will open the door to a larger customer More exciting projects And most importantly, more profits This will allow you to grow up to create a team and continue to work that you love sustainably.

The final question is not about whether Value-based PRICING is good or not, but is that "Are you ready to reclaim your professional value?"

Do not let the fear limit your potential. Begin the conversation about your next customer from today!

If you want to have a partner who understands this idea deeply and ready to help you create a website that is not just beautiful. But creating business results that can actually measure, try to look at our website design and development at Vision X Brain. We do not just create a web. But we create a growing tool for your business.

Prompt for illustrations: Freelance/Agency that used to be tired in the first picture. Now standing confidently Join hands with a smiling customer The back is a graph that rushed into the sky. Conveys a mutual success

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