What you will learn in this episode:
- Many of Zao’s clients do not start from proposals. The work often comes from an existing relationship where the trust has already been built.
- By the time the proposal is created, there have been about a half-dozen conversations with the potential client.
- Framing the proposal conversation is concentrated around new work with a new client.
- The proposal is often delivered at the same time as the contract, but they are two separate documents.
- Proposals are pretty simple. They tell you about the vendor, how much the project will cost and will identify the parties.
- Pro Tip: If you are using Google Docs for proposals make sure you make a copy of the original. Google Docs keeps track of revisions and comments that the client can see.
Things to be aware of with a new prospect:
- A client can come in as a referral or from the contact form on the website.
- A video or call will be scheduled by a project manager. A video call is best if you cannot meet in person.
- Get into the comfort zone of the new customer.
- The type of client will factor into the pricing. A client who needs a lot of management can expand the costs of the project. It pays to get to know the client as much as you can in the beginning.
- You can find out what you need up front to determine adjustments to your pricing.
Pricing:
- You are trading time for money on projects.
- There is a lot of time going into answering the questions that come up.
- Value-based pricing is very popular right now. You need to figure out what the value is for the client. You need to make sure you are providing value for what you are charging.
- The market is really good at determining value.
- Understanding your business and the client’s business helps with your pricing.
- If you cannot price the project, it is impossible to come up with the value.
- Do not let imposter syndrome (or the opposite) Dunn and Kruger syndrome impact your pricing.
- Understand the value that you are providing by surrounding yourself with people that you trust and help you access your skills.
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About Justin Sainton:
Justin Sainton is the founder of Zao, an agency based near Portland, Oregon. As a core contributor to WordPress and lead developer for the WP eCommerce project, Justin believes passionately in the philosophy of open source software. Working exclusively with WordPress and an array of other open-source technologies, Justin and Zao have provided creative and effective solutions for a wide variety of companies and associations ranging from Amazon to PayPal to Pitney Bowes. When not building the Zao empire or spending time with his beautiful wife and four incredible kids, Justin can be found enjoying the best espresso in Portland.