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How do you direct your clients to the product you really want to sell? How do you show the value of your services? Can you really get volume with a loss leader? These are all questions we ask ourselves. This week, Jason and Bridget are joined by marketing expert Nathan Allotey. We will discuss the psychology surrounding pricing. This is an episode you’ll want to bookmark and rewatch!

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A Little Bit About Nathan Allotey

Nathan has been working with digital clients for ten years, has a graduate degree, and teaches people through his podcast and blog at His podcast “Freelance Jumpstart,” can be heard anywhere you hear podcasts. If this episode makes you want to know more about pricing your services, check out more of his videos in this playlist on his site.

You Can’t Avoid Failure

Reading books and listening to podcasts is good. Most people educate themselves to avoid failure. Rather, learn from failure. One thing developers understand is iteration. Test the market. Raise your prices.

“They do all these things ’cause they’re trying to avoid failure.” Nathan Allotey

“You will fail; learn from that failure and adapt.” Nathan Allotey

Know Your Cost

Nathan believes that you should be making 30% profit. In order to do that, establish your base. Figure out your overhead costs that also include hosting and any plugin licenses or SaaS fees.

Remember that hourly pricing should be internal.

Know Your Worth

Your pricing should reflect the years of education and hours of training that you’ve spent getting to the level of expertise you’re at.

“Definitely know your worth.” Nathan Allotey

Knowing — deeply understanding — your worth causes you to instinctually protect your time. This affects the scope of work and how a client treats you.

Don’t be afraid to stick to two revision cycles, for example. People get what they pay for. If a potential client says another agency will build the website for $5,000 less, then let them. Otherwise, that is being used as leverage to bully you. It’s manipulation.

Know Your Clients

Clients like to feel empowered. Instead of presenting one proposal that ends in a yes/no answer, present options.

Price anchoring allows the customer to choose an option rather than say no. This educates them and empowers them to understand your value.

“Instead of agonizing over the decision, why not present options to the client and let them choose?” Nathan Allotey

Presenting options gives your clients to understand a range of what they should pay. They have a choice.

How Much Should A Website Cost?

What value is the website going to bring to your customer? You may want to ask the client that question and use value-based pricing instead.

“How much are my websites worth rather than what a website costs.” Nathan Allotey

What should I charge?

Do some research. Scope out a project and ask agencies for a bid.

“Pricing is not a decision; it’s a strategy.” Nathan Allotey

Anchoring Establishes Value

If you do choose to use a loss leader in your anchoring it is important to think long term, Nathan advises.

“Tend to think long term, rather than short term when it comes to loss leaders.” Nathan Allotey

What’s Really Valuable?

The most valuable thing in your business is you. Allow that value to permeate through and influence your actions, attitudes, and perceptions.

“Remember that you are valuable.” Nathan Allotey

Tool or Tip of the Week

This Tool or Tip of the week is brought to you by Fat Dog Creatives. If you’re a service-based business serious about growth, Rhonda Negard is your rebranding and web design thinker, a strategic design specialist. Check out her website at

Nathan recommends a book called “The Win Without Pitching Manifesto.” It’s helpful for those who are shy about sales pitches to get more comfortable with your service offerings and value.

Jason recommends Momentum, a browser extension that helps you be your most productive self. Plus, it’s beautiful. Bridget added it to her Chrome right after the show.

Bridget recommends Voice Memos. If you’re using a tool like Headliner and want to post audio to your Instagram, for example, you need a .wav or .mp3. This tool is free and just works.

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Editor’s Note: Transcriptions of episodes are created with a mix of speech recognition software and human transcribers, and may contain some grammatical errors or slight deviations from the audio.

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Podchaser - Smart Marketing Show

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