Price = Risk
January 25, 2021
4 min read
Hi photographers 👋,
Recap: The price you set is the reflection of your abilities to complete (and excel) at your service.
“I want a million YouTube subscribers…”
I’m searching online for a marketing firm that can help me grow my YouTube following substantially.
“I want a million YouTube subscribers,” I tell the CEO of XYZ Marketing.
You and the CEO talk for a bit.
The CEO concludes:
“Given our skills as a firm, we believe we can help you achieve this goal for $10,000.”
I nod my head, “Okay, but can you guarantee that I’ll get a million subs?”
CEO: “We can get you on that path, but it’s not a 100% guarantee.”
“So how much is a 100% guarantee, then?”
The CEO replies, “That’ll be $10 million, and we can 100% guarantee that you’ll have a million subscribers.”
Price is the result of risk.
If the client wants to shift ALL (or most) of their risk onto us, then it’s going to cost them more. You and your client are agreeing that this amount of risk is acceptable and a good exchange of value.