E101: Get creative on your pricing for more profit with Blair Enns

Blair Enns is founder and CEO of Win Without Pitching, the sales training organization for creative professionals, and the author of two books: The Win Without Pitching Manifesto (published in 2010) and Pricing Creativity: A guide to Profit Beyond the Billable Hour.

Episode highlights:

  • The reason for Blair taking on his second project that’s all about pricing.
  • The art and science into pricing (value-based pricing).
  • The first three rules to the pursuit of scale and the downfall of customizations.
  • Common objections from clients being charged different prices.
  • How high to go with pricing.
  • Best advice ever received: If you’ve got a body in the trunk of the car, you should stop and fix the burned out headlight or don’t speak.
  • Habit that contributes to success: Recharge; the idea that time off is not a reward for effort or good behavior time off is a requirement for success.
  • Recommended book: Zero to One by Peter Thiel
  • Recommended tool: EconTalk podcast

Links

Quotes:

  • “I realized I knew nothing about the subjects of pricing and value.”
  • “He said I really wanna thank you for what you do. We made a lot of money from your advice over the year. And I said oh that’s great thank you, and they said no no no, we made A LOT of money.”
  • “I had no qualms about pricing it in units of hundreds of dollars.”
  • “There are ninety thousand pieces of information data points that go into the pricing of an airline seat…ninety thousand points. So it’s like heavy on science and the computation.”
  • “You cannot decouple the subject of pricing from the subject of selling.”
  • “I proved this in the book is wired to answer the question which of these is the best value so you change the question from is this worth X to which of these is the best value.”
  • “I said, “I appreciate that you’ve reached out to me.” and I said this, “So, I want to make two points. Number one, I reserve the right to charge you whatever the hell I want. Your decision is whether you pay it or not. And number two, I pulled the invoices and one of the three of you bought a different product I packaged things up and the other three of you who think you paid three different prices, you all paid the same price, you just misremembered.”
  • “You will create animosity if you proposed to be paid more than the value you propose to create or more than what they see as a fair share.”

Takeaways:

  • You can create packages for the client without tying your agency to three specific packages for every client all the time.
  • (1) Press the client, not the job or the service. (2) Always offer options. (3) Anchor High.
  • Charge prices based on the value offering.