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In this article we'll take a look at different ways to price, a few strategies to use, and why you might want to avoid charging everyone the same price. To get greater returns from pricing, companies typically find ways to charge different prices to different customers. Imagine that you've created a widget that enables a machine to work at twice the output it did before.
In terms of SEO, are you charging enough for your services if you charge a few thousand dollars, whilst your clients make millions? Do customers value other characteristics, such as brand, established service levels, reputation, locality etc? Are there times of the year they can afford it, and other times where their purchasing power is constrained? This type of approach takes into account a number of variables when setting price, namely affordability, value, market conditions, and competition.
The Law Of Three: If you go into a shop to buy a washing machine, you'll likely be faced with a range of models. Auctions: Perhaps not applicable to SEO, but if you're selling products, the auction system can be a great way to achieve better prices.
Segmented Pricing - Perhaps your buyers can't pay the entire cost up front, but they can buy using other arrangements, like a monthly fee. Differential Pricing - Offering coupons can grab those buyers who are very price sensitive, or looking to buy only if they perceive a genuine bargain. Notice that luxury items either don't display their price, or, if they do, it's typically stated in rounded figures i.e.
However, keep in mind that if the differing price points reflect different levels of value, then the customer is deciding what they value most.
I was trying to remember a time when using this tactic, and they did NOT pick the middle price. I tend to make the high-priced option the same basic thing as the mid level, just done in much less time.

Yes, I often find they pick the top one, especially if the top price point is set close to the middle. Now you can know exactly where they rank, pick off their best keywords, and track new opportunities as they emerge.
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Pricing of a good or service is determined by working out the total production cost, then add a profit margin.
If we offer a SEO service at $15,000, arrived at by the cost-plus method, but our competitors offer the same service for $10,000 then our pricing clearly won't work. The value to the customer is considerable, as they can now double their output with little extra investment.
Thinking of pricing in terms of value provided to your customer is a key to increasing profits. For example, if you sold cars, there are other costs involved that make up the total cost of ownership, including running costs, insurance and maintenance. A hotel may jack up the rates to ridiculous levels because it knows demand will surge, however the long-term value of the brand may be damaged if the hotel gets a reputation for price gouging. For example, in order to build a reputation in the market, new SEO agencies sometimes provide services at a discount, or free, in order to get a few big name clients on their books.

Offer a bells and whilstles version that is highly priced, a mid option, and a cheap option.
Entire books have been written about the psychological effects of auctions, but it all boils down to the fact that people place different values on products based on their own needs.
Conferences tend to offer coupons off retail price for early attendees, but so long as the full price has been seen publicly by some folks, this lends a perception of value that can be used in subsequent marketing & packaging. Some clients might prefer bundle offers where everything is done for them, whilst others want to mix and match parts of your service. Your other customers won't bother with coupons, so you can successfully run two different pricing strategies, one discount and one full price, by using coupons.
There's nothing wrong with this method - cost-plus pricing is widely used - however it does present a few problems. The cost of production of each model is probably near identical across the range, but by offering different versions, they can figure out who is prepared to pay more.
Some companies might run an in-person conference which charges thousands of dollars, and then afterwards, sell you a download version of it for a few hundred dollars, all the while anchoring on the "fact" that you just saved $1,000+ with your purchase. Markdowns don't work so well on luxury items, as this can compromise their exclusivity value.
Value based pricing would charge in line with the total value it creates for the customer i.e. If the shop didn't offer a ridiculously expensive model as a basis for comparison, the middle option becomes the expensive option, and you're more likely to set your sights lower.

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