As a UK-based digital marketing agency offering comprehensive services, what should be the appropriate pricing structure for securing monthly retainer clients? Despite generating leads, I am struggling to determine the right price point for my services given the disparity between high-end agency pricing and lower-end outsourced pricing. Specifically, if a client requires social media management across three channels, including content creation, design, lead management campaigns, SEO work, and two dedicated resources, what would be an appropriate monthly fee for this work?
I have created my share of pricing for outsourced activity. Knowing what my competition is charging both on the high end and low end helped me understand the landscape but I created my pricing based on my own value proposition for each specific partner. First I needed to understand where they were and where they wanted to go. Then what has typically stood in their path to achieving their goal. Knowing these things was a good start in creating a plan for them.
Next communicate to them what it would take for them to do it themselves in terms of manpower, management, infrastructure, investment and total cost without the guarantee of success. Are they experts in the problem you are solving? Position yourself as the expert solution provider.
Then communicate to them how your team would manage this process and produce results for them. Not only reducing the complexity and reducing the cost but the additional value of partnering with your team.
If you lead with your product and solutions then the number one objection will be price. If you take a consultative approach and tailor a plan based on results and value the objections will be around the inputs and desired outputs. These will be objective discussions and basis for negotiation.
Of course my explanation is a simplified approach but hopefully gives you food for thought and creativity.
Good luck!
David
Answered 2 years ago
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