Money and Finance
These Savvies explore the topic of Money and Finance in more detail —
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?
Sometimes significantly increasing a price on something can not only increase demand for the item, it can actually increase sales... and this principle applies to speeches as well as physical products.
So how do you avoid becoming a commodity? That’s where positioning and branding come in. When people want to hire you because of your matchless style or your unique content, you are no longer simply “a” speaker — you are “the” speaker that they want to hear.
As you have seen, there are a variety of reasons to set a low price (or lower your price) on a resource, including making the resource more affordable, increasing sales volume, or using a “loss leader” to increase sales in other areas. But there is one reason that you should not consider when lowering your prices… competing on price.
So you certainly don’t want to compete on price. But what about going the other direction — raising your fees? After all, there are a multitude of reasons why you might want to charge more, not less. But your customers may not share your enthusiasm for raising your prices. How can you justify doing that? There are several approaches you can try:
So, when it comes to changing your fees and prices, most speakers would prefer to go higher, not lower. But how high?
What if your target market cannot afford your fees? Don’t be too quick to lower your prices. You may be able to get someone else to pay for your programs or resources (through sponsorships or grants, for example).