Wed, 10 March 2021
Are you constantly trying to get prospects to tell you their budget? Do you spend too much time managing client expectations? Not sure which projects to prioritize? Contrary to my opinion, some agencies find success by putting agency pricing on the website. And, there are some benefits. It solves some client budget issues and helps the team prioritize projects. Do you agree?
In this episode, we'll cover:
I talked to Tory Smith, Co-Founder of the Texas-based B2B and SaaS marketing agency, Bay Leaf Digital. He and his partner began the agency without a playbook or even a solid grasp on what their niche would be. However, they were able to turn to their professional connections to get their foot in the door. Tory believes in being transparent with prospective clients about the price of agency services. Contrary to my beliefs, he is here to tell us about the rather unconventional way his agency addressed the issue.
Does Agency Pricing on the Website Work?
Tory began researching the idea of placing a price page on the agency website during the year before the pandemic. What Tory found is the practice is common with software companies, however, very few marketing agencies display their prices. He and his partner decided to give it a try. They decided f they didn't see a quick benefit, they would take it down.
Within two days, Bay Leaf landed its biggest client to date. An established overseas company found the agency's website. The CEO called Tory asking to obtain even more services than what was offered in the highest package price. What Tory learned was the price page worked for the agency and the top-tier package needed to be open-ended.
The Pros and Cons of Publishing Your Agency's Prices
In addition to disclosing prices on their website, Bay Leaf created a point system for billing their services. The benefits Tory found with the price page and point system include:
The downsides of the price page and point structure include:
What Is More Important Than Pricing to Some Clients?
During the recent economic downturn, Tory wondered whether his clients would still be able to afford the agency's services and considered lowering agency prices. However, instead, he discovered clients weren't hung up on price, but rather the long-term contract. Because of this, Bay Leaf began offering a six-month service commitment for clients and finds even that is too long for some. Since the pandemic, Bay Leaf had a promising prospect walk away who likely would have stayed with a shorter-term contract.
Instead of lowering your pricing, consider lowering the commitment level. Additionally, remind your clients the transparency of your pricing page is just a starting point. It is the stepping stone to a larger conversation that can lead to providing exactly the services the client needs.
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Direct download: Should_You_Put_Your_Digital_Agency_Pricing_on_the_Website_.mp3
Category:general -- posted at: 5:00am EST