I can’t stop listening to my second podcast/interview with Michael e. Stern, in which he shares the pricing strategies he’s developed over 36 years in business.
Here is Michael’s summary of what he calls his 3 Pricing Drivers:
“First, you have to understand what kind of an animal you are. We are nuts in the first place to think that us right brainers can work in a left brain world. The numbers and columns go against the grain of what creatives like to do, which is think outside the box and come up with wild ideas and tap into our emotions and make art. There’s a fundamental conflict right there. Still I’ve been able to develop this [pricing] idea for myself that works: instinct, emotion and numbers.
1. Instinct. You have to have a gut feeling that this is the right price. I listen to the scope of work and I listen to what the potential client wants. My instinct already has a number in mind.
2. Emotion. It’s an experience-driven way to price your work. It can be self-defeating if you don’t have the aforementioned instinct developed and refined. The emotion part of it is “the J.B. factor” that goes into all of my pricing. And the J.B. factor means “just because.” (Read that on the blog.)
3. Numbers. This is the driest part of the process, but you have to know what your numbers are on a monthly basis. I know what goes out in terms of cash every month, and I know what kind of numbers I have to hit to make a profit. I’m not here to survive. I’m here to thrive.”
Listen here to the first podcast with Michael e. Stern on how his niche gives him the freedom he wants.
And if you need guidance with pricing or other left-brain issues, I’m here to help. If you’ve never done the free 30-minute session with me, sign up for it here.