Last week, we had a discussion about the different pricing models you can consider, particularly if you work for or in a service business.
This week, I’d like to take that conversation a step further and discuss what my Agency Leadership co-host, Chip Griffin, calls the “goldilocks” client strategy.
Remember Goldilocks and the three bears? She started out by eating porridge that was too hot, then some that was too cold, and then some that was just right.
Then she sat in a chair that was too big and another chair that still didn’t fit right, but the third chair fit perfectly. And so on.
That’s how I want you to think about the clients you work with—some will be too big, some too small, but some will be exactly right. You have to get your pricing right, as we discussed last week.
And when you do that, the magic begins to happen.
It also gives you a massive amount of freedom because you know exactly how much something costs with profit on top, and it makes it lots easier to say no when a prospect wants to negotiate it.
This, by-the-way is one of my biggest pet peeves, No one goes into a restaurant and sits down and says, “This menu looks great! I’d really like to pay only half of the price you have listed here. Can we do that?”
Yet, everyone wants to do that when they hire a creative agency. It makes me nuts! But that’s why knowing exactly what things cost in your agency, with profit added in, is so important.
Once you have that down, it’s time to think about who the clients are that are just right.
Clients who can just barely afford your services create one set of problems. Those who think your fee is a drop in the bucket also have their issues.
This is why you need to follow the Goldilocks Principle when signing up new clients.
And that is what we discuss on this week’s episode of the Spin Sucks podcast.