I am totally piggybacking on Marcus’ post over at Spin Sucks, but this is a question I have been pondering for a LONG time.
The two most popular posts so far this year (by a mile) are this post on How Much Social Media Costs in 2011, and this one on How Much Social Media Costs in 2010. Also, three of the top 7 keywords that send search traffic to this blog are associated with the price of social media services. So I only have to look at my Google Analytics to tell that there is a HUGE interest in the price of social media services.
And yet, most social media and/or marketing consultants don’t list their prices. Or if they do, this information is usually buried on their site, in doing research for both of the above posts on the price of social media services, I found several ‘name’ consultants that did have prices for their services, but it was like hunting on their site for a needle in a haystack to find the numbers. It seems that the few consultants that do quote prices are quoting prices that are so far and above what most of their peers charge that it seems to simply draw ridicule from their peers. Which might be the plan, cause it also draws a lot of attention to their prices!
I did start listing prices for my Social Media Strategy and Blogging Strategy Audits, but that’s really all I have solid prices down for. And I also offer a Satisfaction guarantee on both, which is something else I am experimenting with.
But really I want to know what y’all think about this issue. And I can completely see both sides: I can see why it would be better to list prices, but I can also see why it would be hard/impossible to quote exact prices for some services. And to further stump me, I have very good friends and business professionals that have told me I should absolutely list my prices, and others that tell me I absolutely should not!
What do you think? Should every consultant/agency list prices for their services, or nothing? If you are a consultant or work for an agency, what’s your policy?
Should consultants list what they charge for social media and marketing services on their site? Yes or no?
@MackCollier Shouldn’t any consultant list his/her price?
@MackCollier Or should all consultants simply bid by project?
@NW7US You tell me 😉 Make the case for why they should.
@MackCollier If a consultant is bidding on a task – they bid on a whole project and don’t list hourly rate
@NW7US I think it depends on the type of work/services, it’s almost impossible to give upfront prices for many services, but not all.
@NW7US Or for example, if a consultant offers an hourly rate, should they list that?
@MackCollier So no – don’t list rates because it is done by the job which can fluctuate based on resources needed, etc.
@MackCollier If they do charge an hourly rate plus a retainer, like a lawyer, then yeah, I think they should list a price. Fair market.
@NW7US I agree with you, if you don’t know the exact scope of the project you can’t give exact figure. But what about a range?
@MackCollier That’s what I have had to do. My customers would not entertain hiring me otherwise.
@MackCollier Negotiations in a contract are always tricky and risky – ranges are built on milestones and rewards…
@NW7US So you list hourly rates, but not rates for projects?
@MackCollier Both sides have to be willing to risk – “feature creep” and the like just like software or other engineering.
@NW7US And ranges aren’t perfect either, just wondering if it’s an option.
@MackCollier You cannot list for a project – one person’s “item A” is not defined the same as another person’s same item A.
@dariasteigman Thanks, I keep having trusted sources on both sides of this issue giving me advice, not sure there’s a ‘right’ answer?
@MackCollier I’ve seen it blow up – “Website for basic business, starting package for only $some sum” – what is a basic package???
@MackCollier I’m with you. Like much in business, depends on what you do (product vs. consulting) and what you’re comfortable with.
@MackCollier Same idea in consulting – “Social media – get x y z deliverable” – too vague
@MackCollier A contract has to be something you can take to court
@MackCollier Both sides have to be able to measure exact deliverable and cost…
@MackCollier In consulting, it might have to be “x number of hours, with no guarantee that you will be famous.”
@dariasteigman But from the client’s point of view, do they want to see the prices? Does that cause them to place more cred in consultant?
@MackCollier Consulting in Social Media and Online Equity (PR) – whatever – how do you define deliverables? Milestones have to be defined…
@NW7US So for you, no prices listed for projects, a ‘maybe’ on smaller items like hourly rates?
@MackCollier Both parties would agree that a task to set up a campaign to set up a market effort, for example, for x hours, at $rate is ok
@MackCollier Interesting question. My gut feeling is to not post an hourly rate, but a flat-rate service is a good idea to put on your site.
@MackCollier Look at it like radio or other advertisement campaigns – you have a run time and deliverables, etc. so it is a project
@MackCollier It has time frame and a set ceiling on cost. Hourly rate even. But the rate has the costs built in, etc.
Hi Mack,
Tricky question indeed. I’ve come down on side of “no” for my business, because so much depends on the scope of work. I’m pretty upfront with prospects about hourly rates, but I also make clear that they are based on a project. The rate to pick my brain for an hour or a half-day is higher. You can’t just brain-suck my intellectual property on the cheap(er).
Another reason: Why self-select clients out? They think you’re too pricey upfront; why chase them away before you’ve had an opportunity to define your value?
I read Marcus’ post last night (but was too tired to leave a comment then), and I think there’s a big difference between selling a product (I’m presuming that his company has a pretty fixed price for different types/sizes of pools) and a service (which is often fraught with variation). I get why you have a couple of services that have fixed prices, because they’re both services where you have a very defined scope and (hopefully) a pretty good sense of how much time they take you.
This should be an interesting discussion…
@MackCollier But, the campaign is not the same for you, that it might be for the band U2.
@MackCollier Whose clients? Reverse is chasing ppl away upfront before you’ve had opportunity to define the work, your value.
@MackCollier Costs for me to run the campaign for you as compared to U2 differ, so my rate may differ. Cannot know ahead of time.
@MackCollier If a prospect defines the “trust equation” based on posted rates, they’re probably the wrong client for me anyway.
@MackCollier Therefore, I won’t print a rate sheet. It has to be negotiated. So, some services I guess you could advert your rate, while..
@MackCollier … other aspects of your consulting would have to be negotiated…
@MackCollier Are you getting pushback from prospects? I think there’s a diff b/w hidden rates (i.e., have no idea how you priced this)…
@MackCollier (I’ve been consulting on and off since 1983 – so I’ve seen all sides of this)
@dariasteigman See with the ‘chasing away’ worry, who are you chasing away? Potential clients or tirekickers? Sometimes hard to say…
@NW7US I think I more or less agree with your approach, and I don’t think you could post a flat rate for most projects even if you wanted 2
@MackCollier Tire-kickers are (sigh) cost of doing biz. At least I’ve gotten better at spotting them.
@MackCollier The only way I would ever see a flat rate on a proj is for a loss leader by a big firm… 🙂
@dariasteigman Hey Daria love your thoughts and appreciate the discussion on Twitter. I should say that from my viewpoint, I think there is a lot of misinformation out there about pricing. For example, I had someone approach me about speaking at their event, and that told me they considered asking me to ask at their event last year, but didn’t because they heard my speaking fee was $25,000! I have NO idea where they got that from, and I am constantly hearing how others assume they ‘can’t afford me’, even though they have no idea what I charge.
So that’s another element to the discussion. And I totally get that it’s hard/impossible to list flat rates for projects where the scope isn’t obvious. I think the question is more around if you should list prices for services where the fee is fixed, or close to it. Like hourly rates, or a phone call, something like that. Thanks for thinking this through with me!
@MackCollier If you listed hourly rates, however, would that have made a difference (other than the speaking thing)? It’s still going to have some people thinking you’re too high. Heck, I have people periodically try to drop my hourly rats by $5-10. (Um… NO. But it does give me fodder for blog posts from time to time.)
I think having a few flat rate services listed is a great idea,. I knew you’d done that, but hadn’t really thought through the broader business value until we started talking. I think it gives people a sense that you are pricing for the marketplace — reasonable but not looking for low-hanging fruit.
I’m going to have to ponder how that might make sense for my business and what services I do that could fit under that rubric.
Thanks for making me think.
@MackCollier That should be hourly “rates’ not “rats.” Though I kind of like the “rats” thing…
@MackCollier , I’m with @dariasteigman . I’ve decided not to post my rates because they vary, especially for projects I really believe in (like a veteran-owned company). If they want to know how much I charge, they need to ask for a quote or a proposal. Each project is different.
Oh, and with all of the new services out there that practically automate social media for a company at a very low monthly fee, I need the opportunity to differentiate my services rather than compete on price. 🙂
I think it makes sense to list fees for a couple of services. People want to know whether they are looking at a Lexus or a Chevrolet.
I guess it depends on your position in the marketplace and the amount of energy you want to spend convincing someone to buy up. If you can draw people happy with your rates and focus your energy on delivering the results you promise, you don’t have to spend so much time selling them on you.
For you, Mack, I can see where publishing a speaking fee (plus expenses to compensate for distance travel) would help you connect with the right venues and clients. I also expect that you have reached a position in the marketplace that rather than spend a hour on the phone with a prospect making the case that you are worth more than they expected to pay, your time is better spent in #Blogchat proving to the world at large that you are worth every penny you charge and letting the clients pre-qualify themselves based on an semi-informed idea of your costs.
@CharityHisle@dariasteigman If the majority of my work was coming from extended projects which involved a big execution element, I would totally agree with you. And I do agree that it’s almost impossible to give a flat rate for projects where the scope is completely variable.