Growth October 21, 2020

Never Compete on Price

Tyler Hakes @thakes

I've been an entrepreneur for 4 years now.

One of the things that I think about a lot is price.

  • How do we put a value on the work that we do?
  • How do we decide what to charge?
  • How much is too much?

These can be deep, scary questions for anyone trying to sell something.

Personally, I've embraced my own flavor of value-based pricing. I've focused heavily on constructing the entire business model around value creation and value communication--I never want to argue or haggle over our price.

This has led us to a fortunate place, but it's puzzling to outsiders.

Many of our clients hire us for $7,500/mo for a scope of work that includes just 4 blog posts.

People think it's insane.

But, our customers are willing to pay these rates because of how we've constructed the business model and positioned ourselves versus the competitors.

I wrote a breakdown of my approach to value-based pricing and how I've gone through the process for my business.

You might find it insightful.

Never Compete on Price: Why Clients Pay Us $7,500/mo for 4 Blog Posts

  1. 2

    Great article, Tyler. I will be doing a summary of this on Growthunt

    Might reach out to you for more info in the coming days! Cheers.

    1. 1

      Really cool! Thank you! Let me know if I can be helpful. :)

  2. 2

    You got me! After reading your post I can see that you are quite cheap in fact. Nobody likes to fail, so what you sell is indeed invaluable -definitely worth more than $7500 per month. Not writing a check yet, but definitely looking forward to it... This is a great source of inspiration, that's why I have followed you. I now consider myself a future customer.

    1. 2

      Ha! Well, thanks. The post wasn't really meant to sell our work, but I'm always happy when my writing resonates. :)

  3. 2

    I don't think anyone pays $7500 per month for 4 blog posts, but they certainly can pay that and more for top consultants.
    Newsreaders are not just paid for reading, doctors are not just paid for asking uncomfortable questions like 'what color is your pooh?'.
    The blog posts are a result of the consulting services. It does feel good to think that a client is paying $7500 for 4 blog posts though.

  4. 2

    Hey Tyler, just wanted to say I saw your post on r/entrepreneur. Those guys are absolute clowns. I thought this article was really great and really insightful, thanks for sharing!

    1. 1

      Haha. Thank you Allison. Reddit's a tough crowd. But, I have pretty thick skin from sharing my story there for many years!

  5. 2

    And even when you do think about the price, it's still a bargain to get an entire marketing team — that you don't have to manage — for the price of a single marketing pro's yearly salary.

  6. 2

    A lot of people come in and think "$7500 for 4 blog posts"?!? But they don't look at the big picture.

    That includes content strategy, custom design, deep research, content promotion and often linkbuilding.

    An entire end-to-end process that sets up content assets to perform on behalf of a client/company for years to come with only minor upkeep.

  7. 1

    How beautifully you have explained. Needless to say why your articles are worth that price. Thanks for making my bad day, great. :P

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