Simon discusses Pricing and how much you should charge your customer. Does the amount you charge depend on who you are selling to?
Note: This transcription has been generated with AI and there may be errors present.
I got a job and to go and get a proper job for a while. So Alan and I started the Popup Business School and we had one sale. So yeah, so So what happens is we start the Popup Business School, we run one event, we’re working on it behind the scenes, but there’s only one sale. And that’s not enough cash to feed us both. So I had to go and get a job for a bit. And just before I took the job, I was doing some freelance consultancy where I was turning up to charities and companies. And I was facilitating the leaders of those businesses and organisations to have meetings. And I was charging between £750 and £950 per day. So they pay me for my time I’d come in and I do some stuff with them. Then I go again, when I joined the company, I got hired to do the same job, but working for someone else rather than working for myself. And overnight, so on the 31st of August 2012, I was worth £950 per day. On the first of September 2012 24 hours later, I was worth £6000 per day. Same me. Same skills. Same work. Yeah, it’s like a, like a big hike overnight, isn’t it? Yeah. So so how is it that the company that hired me, were able to sell me out and kind of pump me out the door for £6000 per day. But I was only able to do £950 per day on my own to the company because the company is more established. They’ve got some clients. And actually, I’m not going out there is Simon Paine Incorporated. I’m going out there is the name of this company. They’ve got some clients already, they’ve got a track track record of some good work. And, of course, because it’s a company, they’re more expensive to run just me on my own. So there’s a mixture of things going on there. The the kind of clients that they’re working for were different to the ones that I was targeting. So one of the things that we’re having in our heads with pricing is what’s my customers expectation? What’s their ability to pay? Because I was doing a lot of work for companies like British Airways, if you go to British Airways and say we’re going to charge you £950 per day. That’d be thinking, Well, I’m not sure you’re at the right level for this. But if you go in there with a price, so a company like ba at £6000 a day. They say that’s quite expensive, but you must be good to be charging that money. So there’s there’s an expectation of the customer. The price that you’re charging is related to the quality of the product, and their ability to pay and their expectation and the confidence thing. So there’s a lots of stuff going on here. Lots of stuff going on.