Once you’ve an idea of what your client wants and the value of the Salesforce project, it’s time to sit down and determine options for price and scope.
Remember, scope is last, so the next step is deciding your prices.
Here are two popular pricing methods:
1. The “Goldilocks” method
This method has a logarithmic structure. Each option includes everything in the previous option and adds lots of value to it.
- Option 1 is A, which is usually what the client needs
- Option 2 is A * 2.2, which is usually what the client wants
- Option 3 is A * 5, which is usually what the client wants and more
2. The “Might-as-well” method
This approach is used by movie theatres, when selling popcorn. If you’re going to buy the small popcorn, you “might-as-well” get the medium size, since it’s only slightly more. And if you are ready to buy the medium, you “might-as-well” get the large, since it’s even less of a jump.
- Option 1 is A, which is usually what the client needs
- Option 2 is A * 1.5, which is usually what the client wants
- Option 3 is A * 1.75, which is usually what the client wants and more
Once pricing is decided, ask yourself the question, “What can I offer at each of the price points?”
The takeaway
Knowing which pricing method to use depends on the type of service you are providing. Also, you can start by deciding option 1 first and then work your way up, or option 3 first and work your way down.