Pricing - How Much?

 It seems like a good idea to keep in mind the target customer when we consider the way and amount we want to price.

Let's say that we want to price this service at $150.00 / month ($1800 annually). If you are already paying $18,000 per year in fees and taxes for your financial life then you are going to increase your annual cost by 10%.

But...!

You are probably saving yourself more. 

Let's say that you think that an hour of your time is worth $500 (how you get there is unique - maybe that's your job or you just sort of have this idea in your hear). If you need 3 hours a month to manage and react to all of the different aspects of your financial life, then you are spending $1500/month.

If a company can offer you a 66% reduction in time, in this case $1,000, how much would you pay for the service?

To be clear, you are still spending $500 a month on your financial life. You are also still spending $18,000 annually on your financial life for fees and the like. 

But if you pay $150/month for this service, you are keeping $850 each month of the value that the company has created for you. So, you are paying $1800 more in fees but you are saving $10,200 annually of indirect costs and you can go further by spending that time with you family or whatever it is that adds even more juice to this equation.

Party on Wayne!

Party on Garth!