How to Price Your AI Services (AI Agency 101)

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.