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Recognize the fact that your leads are human.

When someone buys something from you, they have a Value (V) in mind for the service they’re buying.

They decide to purchase your service because they perceive the Value (V) they’ll receive by purchasing as higher than the Price (P) you’re charging.

V > P

Your Price (P) for your service shouldn’t equal your Cost (C) for the service โ€” your Price should be higher than your Cost.

Your Cost is what it costs you to perform the service.

– X hours to design a logo
– Y hours to take an app from concept to cloud _(internal proof of concept)_
– Z hours to run an outreach marketing campaign

Your Price (P) should be higher than your Cost (C).

P > C

Put that together, and you have

V > P > C


Value (to the buyer) > Price (to the buyer) > Cost (for the seller)

Why is this important?

If you increase the value of your service, you should raise the price of your service. If you add a new deliverable or got better at some aspect of the service, the value has increased. Raise your rates.

If you’re looking to raise the price of your service, an easy way to accomplish that is to increase the value of your service.

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