Pricing and Positioning.

Today in our lecture with Chris we covered the following:

  1. You deserve to get paid.
  2. 2. Cost Plus Pricing
  3. Per Hour vs Per Project Pricing
  4. Pricing Pipelines
  5. Prototyping With Numbers

We considered the prices we should be aiming to be working for every hour, we came to the conclusion that £100 per day minimum, which is £13/£15 an hour is the value we should be working towards. Depending on the amount of experience you have the user will pay more for your time.

Cost plus Pricing

“ Cost plus pricing is the simplest method of determining price.
You make something and sell it for more than you spent making it, reflecting the added value in providing the product.”

—Christopher Murphy

It took me a few seconds to draw it, but it took me 34 years to learn how to draw it in a few seconds.”
—Paula Scher, Pentagram

PROS of Cost Plus Pricing

– Takes less market research

-covers all cost at a consistent rate

-It hedges against incomplete knowledge

CONS

– it doesn’t take into account market research.

-It creates a culture of profit losing isolationism 

– It fails to take into account customers. 

Per Hour vs Per project

My knowledge + my skills= value

Pricing Stratagys

BY THE PROJECT? OR BY VALUE?

Negotiate

– Limited budget. Tighten the scope.

– Huge scope. Raise the budget

Get the budget up front**

Ask the client what their ballpark is. 

ThInk about the magic question

“Before we progress any further on the project, I need to know what your budget is. Is this: 1. A $5,000 project? 2. A $10,000 project? Or 3. A $15,000 project?”

—Christopher Murphy

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