In this episode, Chip and Gini discuss the psychology of pricing within agencies. They cover topics such as the importance of being confident in your pricing, avoiding negotiating against oneself, and the benefits of premium pricing.
Gini highlights her experiences with male and female negotiators, emphasizing how women often undervalue themselves. The duo debates the effectiveness of the ‘three pricing options’ strategy and its pitfalls. They also offer practical advice for owners to ensure their pricing sends the right message to clients and reflects the true value of their services.
Key takeaways
* Chip Griffin: “If you’re absolutely convinced, and you might be right, that a prospect doesn’t have a certain budget, you can give them an option at a lower price. But for God’s sakes, make the amount of work less than what you planned on doing originally for the higher price.”
* Gini Dietrich: “Stop negotiating against yourself. People will pay more than three grand a month. Trust me.”
* Chip Griffin: “There are high end and low end bounds to your targeting, and you need to think about how your pricing presents within those.”
* Gini Dietrich: “If you know exactly how much something costs, it will build your confidence to say, this is just how much it costs. And then add in your profit margin.”
Related
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Pricing strategy for your agency
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The relationship between bottled water and agency pricing
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Understanding pricing models for your agency’s services
View Transcript
The following is a computer-generated transcript. Please listen to the audio to confirm accuracy.
Chip Griffin: Hello, and welcome to another episode of the Agency Leadership Podcast. I’m Chip Griffin.
Gini Dietrich: And I’m Gini Dietrich.
Chip Griffin: And Gini, I think I’m gonna be a psychologist today.
Gini Dietrich: Oh, you are great. Yeah. Yeah. Okay. Shall I, I tell you all my problems.
Chip Griffin: Oh, I, I, I figured that Olivia Benson would actually,
Gini Dietrich: yeah. Olivia Benson’s having a rough morning.
She’s, it was Addie’s birthday on Friday and there are balloons downstairs, and she’s scared of them. She’s having a rough day.
Chip Griffin: So. Listeners, if you, if you hear a dog bark in the middle of this, she just wants to be part of the show. Which is natural. I imagine lots of people, in fact, based on my inbox, lots of people do want to be part of the show.
Most of them having absolutely nothing to do with the business of agencies.
Gini Dietrich: Yes, yes.
Chip Griffin: Most of them being just awful, awful podcast guest pitches.
Gini Dietrich: My, my favorite one is, ones are always the ones that say I’m a big fan. I listen all the time. And I’m like, no, you don’t. Nope.
Chip Griffin: Nope. You don’t. ’cause you wouldn’t be pitching this person.
