Home – New Forums Marketing mastery A winning story of charging correctly

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  • #988012
    Will from ADM
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    I always struggle with charging a customer. I am one of those one man band business owners who doesn’t feel right charging what he should for his product in case no one buys it or the client gets upset and never employs me again.
    But recently I have been trying to shake off that mentality and charge what my work is worth.

    So I was asked to film and produce a 4 minute video for a real estate investment company. I had previously done work for this company before in the form of property photos.

    The client did not ask for a quote rather just for me to follow her around greater Melbourne for a day and a half with a camera and then film an interview in her office under lights.

    So I produced the video and within only 4 minor changes to the edit they where very happy with the end result. FYI here’s a link to the video if you’re interested

    http://www.ausdigitalmedia.com/?portfolio=solid-group-mink-appartments-promotional-video

    Then they asked for the bill.
    I put an email together saying thanks for the positive feedback, and then went on to explain what went into the video as far as top quality equipment, how I charged per hour and kept time sheets for the filming and the editing, how I colour corrected every scene and really put in an effort for them (As I always do anyway).
    I nervously told the client I would need to charge $1250 for the video.
    The client quickly responded with “Wow that is a great price Will, I am really happy with that, I’d like to book in 2 more shoots, and I’d like to pay you $1500 for this video as you did such a great job”

    I was really happy with that one.

    So then I thought to myself what did I do differently with this transaction to those in the past.

    I think it was this;

    Produce a quality service/product, inform the client in detail on how you charge, and be confident that you are charging what you or your product is worth. That’s it.

    So keep on pushing guys and girls. Sooner or later you will have that win that keeps you motivated and keeps your spirits up.

    Will.

    #1165250
    Johny
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    Will,

    That’s a great result good on you.

    Might I comment however that perhaps if you have a customer that thinks your price is good to the point they have offered to pay you more, that could mean you are still undercharging.

    I do agree with you that it pays to itemize what you have done to justify the cost.

    #1165251
    Will from ADM
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    Sure that’s a good point Johnny.

    I’ll consider upping the price down the line after a few satisfied jobs with this client

    #1165252
    Wheel Buddy
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    Thats a great story and it takes a while to figure out and be confident in what to charge.

    I have noticed that when i started my business I charged lower because of inexperience.

    But over time I have learned to bring expenses down , increase the quality of work and also quote in accordance with the market.

    My advice to anyone is dont be scared to charge above market rates if your work is great and you have good customer service along strong sales skills you will still get the bookings.

    #1165253
    Stuart B
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    I think a lot of people have been in this position at some point.

    Generally speaking I think the majority of the uncertain feeling stems from not having a black and white fee structure in place. I don’t know if this is the case for you but when people are just kind of making the numbers up case by case, it’s natural to worry if it’ll go over well because you’re trying to tailor a number that the client will like.

    Another thing which will stop that feeling too is quoting them BEFORE you do the work. That way when you give them the bill there’s no way for a surprise obviously because they’ve already agreed to it.

    #1165254
    MissSassy
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    What a great result Will, good for you

    People will always worry about their pricing and for some you will be too expensive and for others too cheap.

    At the end of the day you need to be happy to do the work for whatever the price is that you end up charging.

    #1165255
    LachyBanton
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    Nice work!

    Charging correctly is often where a lot of businesses shoot themselves in the foot.

    Kym Illman, owner of Messages On Hold and considered Australia’s most prolific ambush marketer does a small business marketing tips video series called Mastering Marketing.

    There’s a good video on there, series 1, ep 6, i believe that really nails pricing and why you should never offer too low an amount.

    Might find it helpful!

    http://www.kymillman.com/mastering-marketing

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