How to Price Your AI Services (AI Agency 101)
By AI Workshop
Key Concepts
Value-based pricing, Anchor pricing, Tiered pricing, Retainer model/Monthly maintenance fee, Return on Investment (ROI), AI automation services, Client acquisition, Pricing strategy.
Pricing Strategies for AI Automation Services
1. Value-Based Pricing
- Main Idea: Anchor the price to the value delivered to the client, not just the time and effort invested.
- Key Points:
- Focus on the Return on Investment (ROI) for the client.
- Understand the impact of the automation on the client's business.
- Calculate the time saved, the value of a lead, and the number of leads lost due to inefficiencies.
- Example:
- Building an AI assistant for WhatsApp messaging, appointment scheduling (Calendly), and CRM data organization (HubSpot, Salesforce).
- If the business owner loses 5 hours/week on these tasks, valuing their time at $100/hour, the loss is $2,000/month.
- If the AI solution saves 80% of that time, it delivers $1,600/month in value.
- A safe pricing strategy is 30% of the monthly value, which is $400/month, plus an initial build fee.
- Actionable Insight: Determine the monetary value of the problem you're solving for the client and base your pricing on a percentage of that value.
2. Anchor Pricing Method
- Main Idea: Position your price next to a higher price point to make it seem more reasonable.
- Key Points:
- Compare the cost of your AI solution to the cost of a full-time employee.
- Highlight the savings and benefits of automation over manual labor.
- Example:
- "Hiring a full-time assistant for these tasks would cost $3,000/month. My solution automates all tasks without the headaches of managing a person."
- Offer a one-time investment of $1,800 plus a $300/month maintenance fee.
- This saves the client $900/month at minimum, plus the additional costs associated with hiring an employee (insurance, etc.).
- Actionable Insight: Research the cost of alternative solutions (e.g., hiring an employee) and use that as an anchor to justify your pricing.
3. Tiered Pricing Structure
- Main Idea: Offer clients multiple options with varying features and price points.
- Key Points:
- Create a basic, standard, and premium package.
- Each package includes additional features or resources.
- The goal is to make the standard package look the most attractive.
- Example:
- Basic Package ($2,200): WhatsApp messaging, lead connection, CRM data organization.
- Standard Package: Includes everything in the basic package, plus Calendly integration and email follow-up sequences.
- Premium Package: Includes everything in the standard package, plus advanced analytics and personalized support.
- Actionable Insight: Design your tiered pricing to guide clients towards the package that offers the best value for both them and you.
4. Retainer Model/Monthly Maintenance Fee
- Main Idea: Offer ongoing support and maintenance for a monthly fee.
- Key Points:
- Business owners may not be familiar with AI and automation.
- The retainer model allows you to handle the technical aspects and ensure the automation continues to deliver results.
- Advantages:
- For the client: They don't have to worry about the technology.
- For the service provider:
- Builds a strong relationship with the client.
- Increases the likelihood of future projects.
- Provides opportunities to connect with other businesses in the same industry.
- Actionable Insight: Always offer a monthly maintenance fee, even if it means lowering the initial build fee.
Additional Tips
- Non-Round Numbers: Use non-round numbers (e.g., $1489 instead of $1500) to give the impression that the price was carefully calculated.
- Adjust Pricing Over Time: As you gain more experience, adjust your pricing based on your results and the market demand.
Conclusion
The video provides a practical guide to pricing AI automation services, emphasizing value-based pricing, anchor pricing, and tiered pricing structures. The key takeaway is to focus on the value delivered to the client and to offer ongoing support through a retainer model. By implementing these strategies, AI agency owners can avoid undervaluing their services or overpricing them, ultimately leading to more closed deals and a sustainable business.
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