Wondering if you could have squeezed a few more pennies out of that last client? Wondering if you charge too low? Well then this how-to if for you!
Here is a rough outline of what you need to do. The Green line is Client’s Patience, this starts off flat, or unchanging over time. That’s because they have a certain expectation of a schedule and they’re patient up to the delivery date.
You’ll notice that where the Orange dashed line and the Client’s Patience line meet the Patience line starts to drop off. This is because the Orange dashed line represents the promised work schedule. In a perfect world, or just one where you manage projects effectively, this is where you would price your application and deliver. But in our world, the business saavy world, you can mismanage the application and allow for many changes that push delivery date back. This is the Red line, the Actual Delivery Schedule.
Now we’ve promised the timeline of the Orange dashed line, and we know we’ll be doing something like the timeline of the Red line and that brings us to the Yellow line. You see you don’t have to focus on one client with this strategy. You can have multiple client project OF ANY SIZE, at the SAME TIME! That’s the beauty of this system!
The Yellow line is Productivity, in the beginning you already know, due to the nature of the business, you’re not going to hit your promised delivery schedule you don’t have to actually work on this project untill just before promised delivery date/client patience dips! Then focus more on this project and eventally ramp up to full capacity to meet you new Actual Delivery Schedule (Red line).
Now the Highlighted area, this is your pricing zone. You can set your price at the left side and get paid too little, or you can follow our secret and price to the right. The optimal pricing is the point where client’s patiences meets your actual delivery schedule.
Following this simple procedure will insure that you will be able to fleece your client for as much as they are actually willing to pay before they get frustrated and walk away from the deal. An added bonus to this system is that since there was such a rush put on in the end, you will have bugs and will then be able to charge to fix them!