The Refinery

Are you a startup? Are you interested in mentoring startups? Join us for OhioXcelerate 2.0 in 2024! Check out how you can get involved at https://lnkd.in/gfhvHcFV Alloy Development Co.

Value pricing DOES NOT WORK for dev agencies... ...unless... 👀 🤩 You have a clearly-defined niche 🤩 You have extensive experience with that niche 🤩 You have a repository of plug-and-play solutions for that niche Just ask Dave Goerlich! In our episode, Dave shared his wisdom and insights on the topic of value pricing for software dev agencies. It's a terrifying subject for many. I've known too many who have been burned by what they thought was value pricing... ...but ended up being a cost-plus, fixed bid nightmare 😫 When you know your space inside and out and have productized services for them... ...value-pricing may be the secret to unlocking better revenue QUALITY in your dev shop. Listen to our full episode for more of Dave's take on the topic! _____________________________ Are you a software development agency looking for a little guidance on your journey to growth? Subscribe to the Dev Launch podcast! We interview software dev agency owners as they share their startup journey and what they're learning in the process. This isn't some generic entrepreneurial podcast with "rah rah" advice - we're talking about specific industry challenges. Find us on YouTube and Spotify. Episodes drop biweekly on Fridays.

Here's why I'm still a HUGE fan of value-pricing for software dev agencies... As Dave Goerlich puts it so well in our interview, but no one really wants software 😱 Feels like heresy, but it's true! No one really cares about the software. They want the TRANSFORMATION your custom software provides. In Dave's dev agency (The Refinery), their use of value-pricing helps them guide the conversations with their prospective clients into a discovery of the ROI of this software investment. Many times (not always, but often), hourly pricing (or retainer pricing) obscures the pathway to discovering the value proposition of the tool to the company as a whole. We frame it as "Well, you could hire these developers full-time, or you could work with us"... ...but we miss the point of WHY the people want the software to begin with. You can't do true value pricing without discovery what the value truly is for your prospect. If you can't make a connection between the custom software project and the prospect's bottom line, Dave asks, "Why are we doing it?" Great question, Dave! 🙌 What WILL this $750k custom application do to bolster your client's business??? P.S. Listen to the rest of the episode where he talks about how they structure their value-pricing, avoiding the common pitfalls such as conflicts with waterfall/agile and the dreaded "scope creep" 😬 _____________________________ Are you a software development agency looking for a little guidance on your journey to growth? Subscribe to the Dev Launch podcast! We interview software dev agency owners as they share their startup journey and what they're learning in the process. This isn't some generic entrepreneurial podcast with "rah rah" advice - we're talking about specific industry challenges. Find us on YouTube and Spotify. Episodes drop biweekly on Fridays.