When it comes to agency pricing, more often than not it’s treated as a closely-guarded secret, not shared or published anywhere your clients – or your competitors – can see. But would it give your agency a competitive edge if your prices were published on your website?
Today I’m looking at the pros and cons of publishing your agency’s prices online, based on my own experiences as an agency founder, and from working closely with other agency directors.
4 Reasons Why You Should Publish Your Prices
With so many agencies not publishing their prices, doing so can be a real differentiator for your agency. Here are four reasons why doing so could be a real advantage for your agency:
1) It Shows Confidence
Displaying your agency prices publicly shows that you have confidence that the price of your services correlates with the quality of your team’s work. It also offers greater transparency, which will help to build trust in your agency and prevent customers from challenging your invoices once you start working together, as they can clearly see in advance what they’ll pay and what they’ll get in return.
2) It Pre-filters Prospective Clients
Having your prices on your website will automatically filter out prospects who can’t afford (or don’t want to pay) your prices. Your sales team will be able to reclaim time normally spent on pitches and conversations with these poor-fit customers, and instead focus on good-fit prospects, whose perception of the value of your services aligns with your agency.
3) It Makes You Think About Your Prices
Putting your prices on your website – either as set packages your clients can purchase, or displaying your team’s hourly rates – forces you to think about the prices of the services you offer. Is your pricing competitive? Are you charging enough to ensure your projects are profitable? Are your packages clearly differentiated, and easy to understand?
The simple exercise of making your prices public can have a huge impact on your pricing strategy, and your agency profitability, by virtue of making you re-think your prices.
4) It Simplifies Your Sales Process
Your sales team won’t need to spend time building custom quotes for your prospects anymore, which eliminates the risk of unprofitable projects. A simpler sales project may also particularly appeal to some prospects, as it means they spend less time on the sales process, and their projects can get started sooner.
3 Reasons Against Publishing Your Agency Pricing
On the other hand, publishing your pricing could set your agency up for problems in the future. Here are three reasons why you may want to keep your pricing offline:
1) It Could Damage Your Sales Pipeline
If you package up your services for your website, you run the risk of putting together packages that your prospects don’t want, or that they can’t afford. In doing so, you risk destroying your existing sales pipeline, and leaving your agency in an unstable position, without any upcoming projects.
2) Your Prices Become the Starting Point for Conversations
While having your pricing publicly visible on your site is a great way to filter out prospects who can’t afford your services, it also means that, for any prospective clients who engage with your sales team, price becomes the starting point for the conversation.
It can easily be compared with other agencies who they’ve received quotes from, and can also mean your competitors can easily position their services to undercut yours. If they can offer a similar level of service to you, knowing their prices are slightly lower, then your agency’s price become your main differentiator – but not in a good way.
3) It’s A Risk
You won’t know how publishing your agency’s pricing will affect your business, until you’ve done it. So publishing your prices is a risk: does your agency stick with what it knows, and keep your prices offline; or do you do something different?
What’s Best for Your Agency?
It won’t always be possible for agencies to publish their prices – for example, if their work is very specific to each customer, with custom projects and wide variation in the scope of your projects. But if you offer services that are very similar from one customer to the next, this more productised approach could easily be developed into standardised packages to display on your website.
Your agency may be reluctant to publish your prices, but if you’re confident in the quality of your services and feel like your prices accurately reflect that, then publishing your prices on your website is a great way to instil confidence in your customers, and a great way to build trust in your agency.