Double For Your Trouble: Pricing Strategies Explained
- V.J. Gomes
- Jun 25
- 5 min read
Pricing you can take to the bank…
Years ago, I sat in the small conference room, reviewing the project terms presented by the firm’s CEO. Across the table, he and his deputy CEO sat awaiting my offer. I quickly assessed the timeline and weighed their earlier assurances that, “You won’t be doing the amount of work you handled for your last project.” The project was presented as having a short timeframe and less work, so my services wouldn’t cost as much, right? I proceeded to quote a reasonable figure to them for my compensation. When neither of them protested or batted an eyelid at my price, I knew I had underbid myself. My misstep will become your blessing.
This piece is called, “Double for Your Trouble”, because pricing your services goes way beyond the basics of supply and demand. When you are offering a product or service you have a lot of issues and expenses that have to be factored into your costing equation.
What are the terms?
Is your client offering you a permanent workspace? Are they willing to lend
administrative support? Do they understand what they are truly asking for? Are there specific demands from the job, such as compressed timelines?
I have worked on projects where:
The true nature of the primary tasks was unknown to the persons recruiting my services. To be clear, they knew what they wanted, but they did not understand what it would truly take to reach all their project deliverables on time.
The project terms offered were not the actual terms and conditions that applied in practice. The work environment was unwelcoming, and they refused to designate office space and administrative support (I eventually recruited my own admin support).
There were several unknowns that came up only when serious problems collided with our goals. Those unknowns were challenges that came at additional costs and time we did not have.
Micromanagement, corporate bullying, information gatekeeping, and any other
work horror you can imagine. Murphy’s Law was fully engaged as anything that
could go wrong did, giving me quite the run for my money!
What did I learn? Nothing is ever what it seems when you offer your product or services to people. Assume the worst while preparing to put your best foot forward.
What Pricing Models are you considering?
Are you using the best pricing model for this project or service?
The most common model is the Hourly Rate. It’s the easiest model, and it is usually used by persons breaking into the consulting field or starting their own businesses. This model can be useful when you are trying to understand how pricing works initially, but it is not the best standard when you consider that the hourly rate is basically trading time for money within a context of limited time and possibly limited resources.
As there is only so much that you can do as a human being in a limited time frame, you will inevitably find that you may have to raise your hourly rate, and then, you also encounter those clients who are not willing to pay more. You will be faced with a ceiling of how much you can charge and how much time you have to provide the product or service. Ultimately, you want to avoid the hourly rate in the long term.
Most consultants use a Daily Rate, but understand that with this model, you are still applying the trading of time and labor for money and there may still be a perceived ceiling to work with.
Project-Based pricing goes a bit deeper, as you find yourself considering operational costs, travel expenses, where applicable, and even consideration for emergency or contingency measures if needed. Costs can also be seen and unseen, for example online costs of software subscriptions or for using research tools or meeting platforms, such as Survey Monkey and ZOOM.
If your client decides that your work was valuable, or if they communicate that your
services will be required over the long term, you and your client are then encouraged to work towards agreeing on what is known as a Retainer fee. Your client will agree to pay you to retain your services, and this can be based on a certain level of reporting and transparency. In this case, the client is paying to have access to you over anextended period of time. Depending on the agreed terms, you make yourself available and ready to offer some sort of value for the retainer being paid. One of the upsides of a retainer is stability over an extended period. As long as you avoid being tied down by specific hours, charge a reasonable amount (for you and your client) and deliver diligently what you promised in your offer.
Finally, there is the Value-Based model of pricing. The challenge here is knowing what your approach is because in this pricing model, you are working with your client to determine pricing based on the value that you are creating for their specific assignment.
Strategy consultants, designers, marketing and research professionals, among others, are all solving corporate problems. As you work with the client, and you determine that you can add a specific quantifiable amount of value over period X to solve their problem or deliver on the project, then you use this information to position your fees.
Do consider “Perceived Value”
Robert J. Dolan and Hermann Simon, in their 1997 book “Power Pricing: How Managing Price Transforms the Bottom Line” argued that if customers perceive your product or service as valuable, naturally the price will not only be significantly higher than the actual costs and labor, but your long term profitability will also experience a boost.
Perceived value, a customer's subjective assessment of a product or service's worth, can be the leverage you maximize on.
Final Thoughts…
This isn’t just a conversation about pricing strategies; it is a call to reframe how we value ourselves. Whether you are a consultant, a creative, a business strategist, or a service provider, pricing is not only about money. It is also about boundaries, sustainability, and self-respect.
By consciously considering things like hidden costs, perceived value, and the true terms of engagement, you are setting a rate and your standard. One that protects your time, honors your labor, and builds a working life that feels equitable and aligned.
Before you quote your next offer, ask yourself, “What would it cost me to give my best work for this project?” And don’t be afraid to ask for double—for your trouble, your wisdom, and your worth!
V.J. Gomes is the co-founder of Consciously Quitting, a career-transition platform. Book her for a strategy session or keynote address.
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