These Savvies explore the topic of Business in more detail —
By this point, I hope you recognize the importance of "running the numbers". Don't assume that the obvious answer is the correct answer — apply some basic arithmetic and check your assumptions before they cause you real problems!
Now that you’re convinced of the importance of running the numbers, let’s turn our attention to the primary reason speakers use numbers — pricing their speeches, products, and services.
Before you explore how to determine the appropriate price for your speech (or other product), let’s consider several reasons why the fixation that many speakers seem to have on their speaking fees simply isn’t justified. For example….
Now that you’ve seen that speaking fees are not your sole concern (and possibly not even your primary concern), let’s start exploring how you can go about pricing your products and setting your fees. An important consideration in pricing your products (whether they’re physical resources or programs that you present) is the resource’s “preconceived value”. (Not its “perceived value” — which we’ll talk about later. This is its preconceived value.)
Another way of determining the price or fee that you charge for something is to determine the costs of producing it. If you want to make a profit by selling the product, you obviously need to charge more to purchase it than it cost you to produce it.
Earlier you considered production costs in producing a physical product. But production costs apply to your speeches and programs too. And knowing what your production costs are will help you enormously in setting your fees.
Now that we know how much your time is worth, we simply need to figure out how much time the project requires. As you saw earlier in this course, it’s all about running the numbers.
Now let’s say that your marketing campaign brought in a total of ten speaking engagements. You can easily see that you need to charge $4,700 per speech, just to cover your development and marketing costs. But that isn’t the end of the story…..
Knowing how much it costs you to produce your product (whether a keynote, a book, or a training program on DVD) is valuable in setting your price or fee, but it’s only one consideration.
Another consideration in pricing your resources is, how important is the sale to you? And why is the sale important to you?