Pricing psychology for agency clients
In this episode, Chip and Gini discuss the psychology of pricing within agencies. They cover topics such as the importance of being confident in your pricing, avoiding negotiating against oneself, and the benefits of premium pricing. Gini highlights her experiences with male and female negotiators, emphasizing how women often undervalue themselves. The duo debates the effectiveness of the ‘three pricing options’ strategy and its pitfalls. They also offer practical advice for owners to ensure their pricing sends the right message to clients and reflects the true value of their services. Key takeaways Chip Griffin: “If you’re absolutely convinced, and you might be right, that a prospect doesn’t have a certain budget, you can give them an option at a lower price. But for God’s sakes, make the amount of work less than what you planned on doing originally for the higher price.” Gini Dietrich: “Stop negotiating against yourself. People will pay more than three grand a month. Trust me.” Chip Griffin: “There are high end and low end bounds to your targeting, and you need to think about how your pricing presents within those.” Gini Dietrich: “If you know exactly how much something costs, it will build your confidence to say, this is just how much it costs. And then add in your profit margin.” Related Pricing strategy for your agency The relationship between bottled water and agency pricing Understanding pricing models for your agency’s services View Transcript The following is a computer-generated transcript. Please listen to the audio to confirm accuracy. Chip Griffin: Hello, and welcome to another episode of the Agency Leadership Podcast. I’m Chip Griffin. Gini Dietrich: And I’m Gini Dietrich. Chip Griffin: And Gini, I think I’m gonna be a psychologist today. Gini Dietrich: Oh, you are great. Yeah. Yeah. Okay. Shall I, I tell you all my problems. Chip Griffin: Oh, I, I, I figured that Olivia Benson would actually, Gini Dietrich: yeah. Olivia Benson’s having a rough morning. She’s, it was Addie’s birthday on Friday and there are balloons downstairs, and she’s scared of them. She’s having a rough day. Chip Griffin: So. Listeners, if you, if you hear a dog bark in the middle of this, she just wants to be part of the show. Which is natural. I imagine lots of people, in fact, based on my inbox, lots of people do want to be part of the show. Most of them having absolutely nothing to do with the business of agencies. Gini Dietrich: Yes, yes. Chip Griffin: Most of them being just awful, awful podcast guest pitches. Gini Dietrich: My, my favorite one is, ones are always the ones that say I’m a big fan. I listen all the time. And I’m like, no, you don’t. Nope. Chip Griffin: Nope. You don’t. ’cause you wouldn’t be pitching this person. You wouldn’t be pitching anybody because you would know we have never had a guest ever. Right. In seven years. Ever. Like, we don’t do guest interviews. Don’t bother trying. Gini Dietrich: Right? Yes. Chip Griffin: But we, we’ve been on that rant before, so I suppose we probably don’t need to go on it again. But you know, if you happen to be listening, then you know, don’t pitch a guest for this show. Gini Dietrich: Don’t pitch. Yes. Chip Griffin: But most of the people who are pitching don’t listen, so that doesn’t really help, Gini Dietrich: even though they say they do Chip Griffin: at all. And, and I really do appreciate the ones where they then become almost abusive in the follow up emails Gini Dietrich: because you haven’t responded, Chip Griffin: never heard back from you. Yep. Yeah. Yep. And you’re not gonna Yep. Because if you, if you’re not polite enough to actually tell me the truth or make a good pitch, I feel no obligation to respond. Gini Dietrich: Right, right. I got one yesterday. That had a meme that said, are you ghosting me? And I was like, yes, I am ghosting you because you didn’t like, same thing. We don’t have guests. I’m not gonna respond to you. Chip Griffin: Yeah, I, I did respond once th