I recently read a nice article regarding pricing and we’ve gone through a few different methods of pricing here at Lift. I wanted to share some of our secret tips and tricks that we use to trick convince our clients to pay us well.
Step 1. Decide on One Hourly Rate
I’ve honestly never worked at an agency that had an a la carte menu for each type of work, but I’ve also never heard of confusing the crap out of the people you’re trying to work closely with. Apparently, confusing your client is pretty common, because a lot of agencies do have various hourly rates for various people within their company to work on your project.
I understand the concern here. If you have people in your agency that suck at life, how can you justify charging the client $150/hour for their time? This method may not work for agencies that have sucky people. However, this definitely works for agencies that have extremely talented people. So maybe try that business model instead if you feel “one price to rule them all” doesn’t apply to your company. We bill projects on a monthly basis and it works out very well because it’s easy and straightforward.
Step 2. Bill Up Front for the Last Invoice
My business partner, Brad, stole gleaned this valuable tidbit of information from Chief Keeper Upper at Ngen Works, Carl Smith. Bill your client a deposit that goes towards the final invoice for the project. Why? Because it makes more sense than charging a deposit for the first part of the project and you don’t have to wait around for a month and a half while your client drags their feet paying the last invoice. You can essentially bill the client for your billable time like you normally would. Then at the end of the project, you can simply deduct the deposit from the amount owed by the client and gather a small amount as final payment, rather than a large amount that could take forever to show up in your bank account.
At that point, you can cut the proverbial umbilical cord and ride into the sunset with your brand new mini Porsche and eat Dippin’ Dots ‘til you puke. Or whatever you’re into.
Step 3. Use ZenCash
ZenCash is an awesome way to let your clients know that they have an outstanding invoice and also thank them for paying invoices on time. You can even send a gift card for iTunes or Amazon for clients that pay within the grace period. They offer the ability to place phone calls, send notes, and even send stupid clients to collections, if necessary. It’s a pretty sweet way to automate your accounting department if you’re like me and don’t have the luxury of a giant team of payment chasers.
Step 4. ????
Let’s be honest here, step 4 is not necessary, but I felt like we should at least add another step to make this article seem more interesting.
Step 5. Profit
Once you’ve completed all these steps, you can now make more money than Honey Boo Boo at a glitz pageant. You’re welcome!