The #1 Reason Why Clients Say No to Value Based Pricing of Creative Services - YouTube

When you see an opportunity for extraordinary  value creation, you can price based on that  

value and that really high price. Hello and  welcome to Ask Me Anything, part of the Win  

Without Pitching YouTube Channel. I’m Blair Enns.  Today I’m coming to you from the Two Bobs podcast  

studio. Two Bobs is the podcast that I co-host  with David C. Baker. If you haven’t heard of it,  

where have you been? It’s available anywhere you  get your podcasts, except YouTube. We’ll fix that,  

there’s just too many things to do. Alright, if  you have a question you want me to answer or our  

director of coaching Shannyn Lee to answer, go to  winwithoutpitching.com/ama for Ask Me Anything and  

pose your question. Samuel did, let’s hear from  Samuel in Nigeria. Hi Blair, this is Samuel from  

Nigeria, I’m a huge fan of your work. So I have 2  questions but I’m just give you a bit of context.  

I want to start a video marketing agency very  soon after doing a lot of research and during this  

pandemic period, I realized that’s what I want  to do so I’ve been doing a lot of role play with  

my friends since I stumbled upon the value-based  pricing that you teach, you and Chris Do, so the  

questions, the objections I usually get in these  role-play sessions are why are you charging us  

a percentage of the outcome when you’re just  doing a video like if that’s all you're doing,  

we still have a lot more to do, like we still have  to market, we still have to do a lot more things,  

there’s still a lot more money to spend so why  are you going to take you know a percentage of  

the outcome and I find that to be a legitimate  at least in my mind it’s a legitimate objection  

so how do you counter. Thank you, Samuel. Samuel  has a second question but I’ve cut him off. One  

question per, I might come back and answer the  second question at another period of time. So the  

issue is you are in the role plays that you’re  conducting, you are selling video production  

services and you’re practicing value-based  pricing where you’re proposing to get paid based  

on the results that you create and it sounds like  you’re asking for a percentage of whatever revenue  

that’s generated. So the first thing I’ll say  is value-based pricing doesn’t necessarily mean  

putting compensation at risk. That’s another  topic I think I’ve addressed it in another  

question on this channel already but let's get  to the heart of your question Samuel which is the  

client is saying well why should I pay you based  on outcomes when the video that you’re producing  

is such a small part of the overall marketing  component and as you pointed out, you see that  

as a legitimate concern as do I. So let’s remember  that although value-based pricing is the ideal,  

the place that we want to get to as we move away  from cost-based pricing, we have to accept that  

not every client wants to pay for value. That’s  why we use the options we put forward different  

ways the client can engage us at different price  points. And we really look for those opportunities  

where we see our potential to greatly impact  the value being created and we seek to value  

price those opportunities if that makes sense. Do  you don’t need to value price everything. Now the  

way you would think about value-based pricing  video production services, I think is when you  

get into an opportunity where you conduct a  value conversation and you uncover that the  

marketing efforts the client is looking for of  which the video production is just a small piece  

will create an extraordinary amount of value,  one of the options in your proposal you might  

think about branching out into those ancillary  services that are related to video production.  

So maybe you’ll take over the actual outreach  part of it, maybe the conversions on the website,  

maybe these who knows, there’s so many other  marketing components as you’ve already alluded  

to that are tied to this video, when you see an  opportunity for extraordinary value creation,  

you can price based on that value, and that really  high price should allow you the opportunity if  

you wish to go and get some friends or other  professionals who can deliver these other pieces  

of the marketing puzzle and then you bundle that  up and you take ownership of that so when you’re  

taking ownership of more of the marketing value  chain we’ll call it, then you have the opportunity  

to take a greater ownership in the economic  results that you hope to drive. I hope that makes  

sense, so thank you for your question Samuel, I’m  hoping to get to Nigeria one day, go super eagles,  

and the rest of you if you have a question, you  can hit me up at winwithoutpitching.com/ama.