Pricing: Keep It Simple, Stupid


First things first. We’ve got to keep it simple, stupid. KISS. Do not have five or six packages. Don’t do build your own. You’ve got to keep it to three or four packages. I operate with three. We’ve been operating with three for over 10 years. It keeps it simple for our clients. They understand.


The second thing you need to understand is pull-through. A pull-through item is that thing that they want, that they lust after, that they’re going to spend more money on. For most of us, that’s going to be the digital files. In simple terms, that means your digital files should never be in your base package. Acrylics and metals should not be in your base package either. Those are things that clients want that cost more money, so they should be in your top-end packages.

The top-down approach

I believe in a top-down approach. What that means is that we list our most expensive package at the top of our pricing sheet, going down to our least expensive package at the bottom. It’s easier for them, psychologically, to come down in price versus going up in price, so keep that in mind.

Get your clients where you want them

Think about where you want your clients to end up. That has to be the most compelling price on the table. That should almost always be your middle or top package. But if you’re offering all this value in your base package, that’s where they’re going to end up.

Look at your customers. Where are they spending their money? Are they ending up in your base package, your middle package, or are they ending up in your top package? If 80% are ending up in your base package, that’s your fault. That’s because you made that package too attractive. So when we start talking about pricing and how to raise your average sale, that’s where we have to start.

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