A short advisory video by Eric Deeran aimed at freelancers and small business owners about pricing strategy. The speaker argues that if you close more than ~40% of prospects on the phone, your prices are likely too low, and you should raise them to create margin for hiring and scale rather than stay in a freelancer mindset.
If you're closing more than 40% of the people that you're talking to on the phone, it's typically because your prices are too low. And a lot of people do this when they're starting out, a lot of freelancers, because they are worried about people not saying yes to them. And so if you can focus on looking at how many people you're talking to, reverse engineering, okay, of those people that I talk to, how many of them actually move forward and then turning that and figuring out what that percentage is. If you are above 40% closing rate, your prices should be going way up, because if you don't charge those higher prices, what likely happens is you don't have the margin to hire people because you're thinking like a freelancer, not thinking like a business owner.
