Resourceful Designer: Strategies for running a graphic design business

Mark Des Cotes
undefined
Aug 16, 2021 • 31min

The Psychology Of Pricing: Part 4 – RD267

This is week four of my psychology of pricing series. Where I share research-proven strategies to influence people to part with their hard-earned money, some of these pricing tactics work great with your design business, and many of them are perfect for helping your clients get more sales. If you haven't listened to part 1, part 2 or part 3 of this series, I suggest you do so before continuing with this one. Let's continue with the series. As previously mentioned, I took the tactics I'm sharing here from an article by Nick Kolenda on his website nickkolenda.com on the psychology of pricing. Nick has links to many of the studies I mention in these episodes. Let's get on with the list. Tactic 29: Create a Payment Medium. If you'll recall the last episode, I talked about the Pain of Paying. That feeling we get when we have to part with our hard-earned money. Tactic 29 offers a great way to reduce that pain by creating a payment medium between the money spent and the purchased product. What is a payment medium? Casino chips are a great example. When gambling at a casino, it's much easier to place a $10 or $20 chip on the table than it would be if you had to put a ten or twenty dollar bill down. Casino chips act as a buffer between your wallet and the act of betting, which reduces the Pain of Paying. Another way this works, and possibly a way for you to incorporate this into your design business, is with advanced payments. If you charge clients by the hour, Instead of offering a monthly retainer agreement, you may instead offer a discount if a client pays for a pool of hours upfront, to be used at a later date. For example, if your regular rate is $100 per hour, twenty work hours should cost $2000. However, you could offer clients twenty hours of work to be used later for $1900. Your client would get 20 hours of your time banked for future use at a discounted price. The next time they have a design project, it won't cost them anything because your time is already paid for. This creates a payment medium reducing the pain of paying. Should the client have a design idea they want to explore, it will be much easier for them to justify spending hours they've already paid for than it would be for them to justify spending the money on their idea even though it works out to the same thing in the end. Another thing to consider is a refundable deposit. Someone starting a venture that requires people to open an account to make purchases may require them to make a $50 refundable deposit when opening their account. This $50 can be used for future purchases or returned should the purchaser decide to close their account. Since the money required to open the account is refundable, there will be less resistance to depositing it. More importantly, the deposit now acts as a payment medium. People will be more willing to spend it on a purchase since it doesn't feel like money coming out of their pocket. Tactic 30: Avoid Language Related to Money. This tactic works great when combined with tactic 29 above. Instead of referring to deposited money as money, you may want to refer to it as something else, such as credits. For example: Instead of clients buying 20 hours of your services. You have them buy 20 design credits, where each credit is worth up to 1 hour of design time. Then, when a client asks for a quote on a new design project, you can say it will cost them X credits. A 2004 study showed that using credits creates an off-balance conversion between the money and the value. This conversion creates a payment medium that is more effective as it's more difficult for the customer to convert the values. A client with 20 design credits is likely to be more willing to spend 3 credits on a new project than spend $300 on it. Even though the two are essentially the value. Tactic 31: Emphasize the Inherent Costs of Your Product. People don't just care about the perceived magnitude of a price, for example, whether it's high or low. They also care about the perceived fairness of a price. Even if you price something low, people could still perceive it to be unfair. The opposite is also true. People could perceive a high price to be fair. It all depends on your pricing method. Cost-Based Pricing or Market-Based Pricing. Cost-Based Pricing: Prices based on cost factors such as the cost of the materials. Market-Based Pricing: Prices based on supply and demand or the competition. Most people view cost-based pricing to be fairer than market-based pricing. And you can increase the perceived fairness of a price by emphasizing the inherent cost of the product. Since consumers don't know the actual cost and markup of an item, making the relevant cost and quality information transparent helps them make their purchase decision. How does this work? It's quite easy. Emphasize the product's "top-of-the-line" materials or any other cost-based input. Instead of advertising a new beverage as Delicious, say something like this new beverage uses naturally sourced organic ingredients. Including this information triggers a more empathetic perception of the price, causing people to imagine it's worth more. This will translate into more people willing to buy it. Tactic 32: Add Slight Price Differences to Similar Products. Whenever you have multiple options for a single product, you create a Paradox of Choice. When presented with multiple options, people feel less likely to choose an option. That's because once they choose an option, they lose the benefits offered by the other options. This loss aversion causes them to hesitate or postpone their decision. This feeling increases as more options become available. In a 2012 study, two groups of participants were asked if they wanted to purchase a pack of gum. Each group had two options. Group 1: Two different packs of gum priced at $0.63 each. Group 2: One pack of gum priced at $0.62, and a different pack of gum priced at $0.64. Surprisingly only 46% of people in group 1 chose to purchase a pack of gum. Compared to 77% from group 2. Why did this happen? It's kind of weird. When the two packs of gum shared the same price, people perceived them to be less similar. However, adding the small price difference increased the perceived similarity of the two packs. This happens because when the two packs of gum are priced the same, people can't distinguish between the two based on price. As a result, they look for other differentiating characteristics making the two products less similar. But when the prices were slightly different, people felt less need to compare the characteristics between the two packs of gum because they could differentiate them based on price. Since the people in group two focused less on the differences between the two packs of gum, both packs maintained a higher degree of similarity, making it easier for them to choose a pack to purchase. This tactic is used a lot on Amazon. Items that are available in different colours are priced differently depending on the colour option chosen. Tactic 33: Use More Frequent (Yet Smaller) Price Increases. Out of all the tactics I've shared with you, this is the one that I find mostly relates to designers. The idea behind this tactic is to control price perception when it comes to price increases through what is called JND (Just Noticeable Differences). Just Noticeable Differences: The minimum amount of change that triggers a detection. In other words, a difference that is just noticeable. Increasing your hourly rate from $50/hr to $55/hr will be less noticeable than if you increased it from $50/hr to $80/hr. Obviously, people take more notice of price increases when they are larger. Unfortunately, most businesses, including designers, are guilty of avoiding price increases until it's necessary. The problem with this is once you reach the point when it's necessary to increase your prices, chances are a tiny amount won't help much, and you'll need to increase it noticeably. Many designers I know still charge the same rate as they did five or more years ago. As the price of everything increases with inflation, they are still making the same amount of money. When they finally decide to raise their rates, they'll need to increase them significantly to catch up with inflation. This tactic states that you should increase your rates or prices more frequently but in smaller amounts. My suggestion is to increase your rates every January. Your clients might not even notice a small increase. And those who do won't be too concerned with a small increase as they would if you increased your rates significantly. Tactic 34: Downsize a Feature Besides Price. The concept of Just Noticeable Difference can be used in other ways as well. It's used all the time in the food industry. Instead of raising the price of something, they reduce the size instead. For example: Instead of raising the price on a 500g bag of chips, the chip company will instead use the same size bag at the same price but reduce the contents to 450g. This saves them money, and most customers won't notice they're getting fewer chips in the bag. A variation of this tactic can be used when negotiating prices with clients. If a client thinks your price is too high. Offer to reduce it by removing a feature from the project. And make sure the feature you remove is worth more than the amount you reduce the price by. More to come. Next week I'll conclude this series with the final tactics in the psychology of pricing.
undefined
Aug 9, 2021 • 25min

The Psychology Of Pricing: Part 3 – RD266

This is week three of my psychology of pricing series. Where I share research-proven strategies to influence people to part with their hard-earned money. Some of these pricing tactics work great with your design business, and many of them are perfect for helping your clients get more sales. If you haven't listened to part 1 and part 2, I suggest you do so before continuing with this one. Let's continue with the series. The Psychology Of Pricing - Part 3 As I mentioned in the previous parts of this series, these tactics were taken from a very in-depth article by Nick Kolenda on the psychology of pricing. Have a look if you want to read through it yourself. Since you're here right now, I'll presume you want me to continue summarizing each pricing tactic. So let's get on with the list. Tactic 19: Raise the Price of Your Previous Product. This tactic applies whenever you or your client introduces a new, more expensive version of a product. Although under certain circumstances, it may also work with the services you offer. If you're introducing a new, more expensive version of a product, what do you do with the old version that's left? Many people would lower the old one to sell the remaining stock as soon as possible. But a 2010 study suggests raising the price of the old product might be a better idea. If you lower the old product's price, you'll be reinforcing the lower reference price, which makes the new product seem more expensive, making people question if it's really worth it. Let's say the old product originally sold for $100, and the new product is priced at $130. If you drop the price of the old product to a clearance price of $80, people are going to wonder if it's really worth spending $50 more for the new product. However, if you raise the old product's price, you also raise people's reference or anchor price, which enhances their perceived value of the new product. So instead of dropping the original product's price from $100 to $80, you raise it to $110. Now, people who compare the old and new versions will favour the higher-priced new version that is only $20 more than the old one. And those looking for a deal will be happy to save $20 by purchasing the old version. Tactic 20: Sort Prices From High to Low. A study conducted in 2012 showed that, on average, customers chose a more expensive option when products were listed in descending price order from highest to lowest. This study was conducted in a bar over the course of 8 weeks. The researchers regularly alternated the sequence of the beer prices. Sometimes the beers were listed from the lowest priced beer at $4 down to the highest-priced beer at $10. Other times they reversed the list putting the $10 beer at the top. The researchers discovered that, on average, the bar generated more money in beer sales when the higher prices were listed first. Why does this work? Once again, it comes down to the ever-important anchor price. Whenever someone looks at a list of prices, the first few prices create their anchor price. If the initial prices are low, it creates a low anchor price which creates an aversion to spending money on the higher-priced items lower on the list. If someone wanted to splurge a bit, they might opt for a $5 or $6 beer instead of the base $4 beer, but they probably won't be interested in the highest-priced beers at the bottom of the list. However, if you reverse the order by placing the highest prices at the top to act as the anchor price, each lower price on the list seems like a better deal. Instead of spending $10 on a beer, someone might decide to save a bit of money and opt for a $7 or $6 beer instead. They feel good about saving money but still spent more than in the previous example. As a species, we have an aversion to losses. When we see a list of ascending prices, meaning from low to high. We subconsciously see each price as we descend the list as a loss. Our motivation to minimize that loss causes us to chose a lower-priced product from the top of the list. But when we see a list of descending prices, meaning from high to low, we see each item as we go down the list as a loss in quality. And since we don't want to lose quality, we are motivated to purchase the higher quality, and hence more expensive product. So if you're putting together an eCommerce site for a client, you may want to put the higher-priced items first in the hopes of increasing the average revenue from each sale. This might also work with the Three-Tiered Pricing System I'm so fond of. I show my three price options from lowest to highest. It might be worth reversing it and showing the most expensive option first. You never know. Tactic 21: Position Prices to the Right of Large Quantities This tactic applies to products sold in bundles. A study conducted in 2012 shows that listing prices to the right of large quantities convert better. 70 items for $29 is better than $29 for 70 items However, the study showed that two conditions must be met for this tactic to work. Condition 1: The unit price calculation must be difficult. Meaning it shouldn't be easy to figure out the individual unit price. The tactic works well with "70 items for $29" because it requires a somewhat difficult calculation to determine how much each item costs. However, "10 items for $10" is too easy to figure out for this tactic to be effective. Condition 2: The item quantity must be larger than the price. Following this condition, "70 items for $29" works, but "3 items for $29" doesn't. This brings us back to anchor prices again. "70 items for $29" works because, as Tactic 18 states, exposing people to any high number creates an anchor that makes the lower price seem more favourable. So $29 seems more favourable when placed to the right of "70 items." Tactic 22: Add Visual Contrast to Sale Prices. When you compare a price to a higher price, people are less likely to shop around for a comparable price. This is the same trick that works with the three-tiered pricing strategy. By showing three prices, you reduce your client's chances of comparing you to another designer since they already have various prices to compare together. Tactic 22 takes another step and optimizes that comparison by visually distinguishing one price from a reference price. As shown in a 2005 study, changing the colour of a sale price triggers a fluency effect. Customers will misattribute any visual distinction to a greater numerical distinction. By listing the original price in black and the sale price in colour, you create a greater numerical distinction making the sale price seem more favourable. Combine this with Tactic 3: Display prices in small font sizes for a double whammy. So not only should you change the colour but also make the sale price smaller to bring home the sale value. Tactic 23: Offer a Decoy Option. We've discussed using your own products as reference prices to prevent clients from looking elsewhere for comparison prices. Tactic 23 says you should consider adding a "decoy option." Back in 2008, Economist magazine did something that many people thought strange. They offered three subscription options. Web Only: $59 Print Only: $125 Web and Print: $125 What? Print Only for $125 and Web and Print together also for $125? That had to be a mistake. Why would anyone chose "Print Only" when they could get "Web and Print" for the same price? That was the point. Further investigation revealed that without the "Print Only" option, people couldn't accurately compare the other two subscription options. How much should a "Web and Print" subscription be? Who knows? Most people had no idea and therefore chose the "Web Only" option. In fact, 68% of people subscribed to the "Web Only" option. But when Economist introduced the "Print Only" option, it helped people compare the other options. Because "Print Only" was the same price but a worse version of the "Web and Print" option, people could now easily recognize the value of the "Web and Print" subscription. With the "Print Only" option available, subscription purchases suddenly shifted, with 85% of people buying the "Web and Print" option. Economist magazine generated 43% more revenue simply by offering a Decoy Option. By offering a similar, yet worse, version of a more expensive product, you influence the comparison process making the more expensive product more appealing. How could you use this tactic for your design business? When submitting a proposal, you may decide to offer a logo package for one price, a website for another price and a combined logo and web package for a very similar price as the website alone option. It might be worth testing out. Motivating people to buy. So far, we've been talking about ways to make prices more appealing. These next tactics are not about making the price look better but more about giving people a little nudge and motivating them to buy. The idea here is to reduce the "Pain of Paying." That feeling you get when you have to part ways with your hard-earned money. This "Pain of Paying" comes in two factors. One: The pain we feel when our money leaves our hands. Two: The pain we feel when we pay after we consume. Uber, the ride-sharing service, does a great job of countering these. With a normal taxi, you see the price meter go up and up with each kilometre you ride which causes stress. Plus, you're forced to pay once you reach your destination heightening the Pain of Paying. Uber, on the other hand, is almost pain-free. You pay for your ride in advance, and their app is connected to your credit card, so you barely notice the money leaving your hands. Offering credit card payments for your design business and charging upfront are both ways of reducing the Pain of Paying and motivating people to buy from you. Tactic 24: Remove the Currency Symbol. A 2009 study showed that the Pain of Paying could be triggered pretty easily. Just seeing a dollar sign (or Euro or Yen or whatever currency symbol) reminds people of that pain and could cause them to spend less. Removing the currency symbol can help reduce that pain for them. However, don't start leaving the currency symbol off without considering the clarity of your price. We often need the currency symbol to show that a number is, in fact, a price. Only use this tactic where people expect a price to appear. Such as on restaurant menus. Tactic 25: Charge Customers Before They Consume. Whenever you can, charge people before they use your service or product. It's a benefit to everyone involved in the transaction. By charging first, you know you've already been compensated for the work you do, so you won't be worrying about getting paid. And chances are your client will be happier with your product. A 1998 study shows that people are happier with a product or service when they prepay for it. This allows them to focus on the benefits they're receiving, which numbs the Pain of Paying. If they've already experienced the benefits before paying, such as a taxi ride, spending the money becomes much more painful. This tactic works great for designers who offer retainers. Make sure you charge your retainer clients at the beginning of the month for the services they will receive. Not at the end of the month for services already rendered. Tactic 26: Attribute Bundled Discounts to Hedonic Products. To be honest, I don't understand this tactic. Plus, I had no idea what the word "Hedonic" meant. So I looked it up. Hedonic is Something relating to or considered in terms of pleasant (or unpleasant) sensations. In other words, attribute bundled discounts to pleasant (or perhaps unpleasant) products. Even knowing the definition, I still don't fully understand how this tactic works, so I'm not going to try and explain it. If you're curious, you can read the full description of Tactic 26 in Nick's article. Tactic 27: Don't bundle Expensive and Inexpensive Products. The tactic is self-explanatory. Avoid bundling expensive and inexpensive products because the inexpensive products reduce the perceived value of the expensive products. A 2012 study asked people to chose between a home gym and a 1-year gym membership. The results were an even split, with 51% choosing the home gym. But when the researchers bundled the home gym with a fitness DVD, only 35% of people chose the bundle, the rest opting for the 1-year gym membership. The inexpensive fitness DVD reduced the perceived value of the home gym. Tactic 28: Shift the Focus Toward Time-Related Aspects. Try to avoid references to money when describing a product. Instead, focus on time: A much greater benefit. An experiment conducted in 2009 had a lemonade stand where the researchers alternated three different signs advertising the product. Sign One focused on TIME: "Spend a little time and enjoy C & D's lemonade." Sign Two focused on MONEY: "Spend a little money and enjoy C & D's lemonade. Sign Three was NEUTRAL: "Enjoy C & D's lemonade." Shoppers were told they could pay whatever they wanted between $1 to $3 for a glass of lemonade. The results were unanimous. Not only did the "TIME" sign attract twice as many people to the stand, but those people paid more for their glass of lemonade than the other patrons. Whenever you write sales copy, emphasize the enjoyable time people will have with your product or service over the money they may save. The added benefit is that not only will focusing on time make your offer more appealing, but it will also lessen the Pain of Paying. More to come. Next week I'll conclude this series with the final tactics in the psychology of pricing.
undefined
Aug 2, 2021 • 30min

The Psychology Of Pricing: Part 2 - RD265

Last week I shared the first nine psychology of pricing tactics from Nick Kolenda's article. This week I continue the series with more great pricing tactics. Tactic 10: Position Low Prices Toward the Left According to a 2002 study, when designing a layout, you should position prices on the left if you want them to appear smaller. Here's the reasoning. Research shows that people associate directional cues with certain concepts. Up is usually associated with good, whereas down is usually associated with bad. You give a thumbs up to things you like and a thumbs down to things you don't. In the Christian faith, good people go up to heaven, and bad people go down to hell. This notion of up being good and down being bad triggers a spatial association. A 2004 study found that people recognized positive words faster when those words are positioned at the top of a layout. They recognize negative words faster when positioned near the bottom of a layout. This same principle applies to numbers, including prices. When people conceptualize numbers, they imagine a horizontal like with numbers going up from left to right. The smaller numbers on the left, the larger numbers on the right. Since people associate smaller numbers as belonging on the left, positioning prices on the left side of a layout can trigger someone to associate it with a smaller value. The opposite works with larger numbers. If you want a number to appear large, position it on the right of a layout. For example: for a message saying, "Receive a $20 credit for every person you refer." you'll want to place the $20 towards the right of the layout so that those seeing it will associate it with a large number making the offer more appealing. The whole point of this tactic is to change the perception of a fixed price. If you want $20 to seem like a great low price, position it accordingly. Whereas if you want $20 to seem like a nice high reward, position it accordingly. Because of these directional cues associated with spatial concepts, the optimal position for your prices is the bottom left of a layout if you want it to appear as a low price. And the upper right of a layout if you want the price to appear higher. Tactic 11: Expose Customers to Two Multiples of Your Price My first time reading this tactic, I thought, "c'mon, this can't be true." but the more I think about it, the more it makes sense. A 2011 study showed that customers exposed to two multiples of a price reacted more favourably to the price. Let me explain this. Nick's article shows four ads from Pizza Hut, a popular pizza chain you may be familiar with. All four ads offered a deal costing $24. The first ad is for 3 Medium pizzas with unlimited toppings. The second ad is for 4 small pizzas with unlimited toppings. The third ad is for 3 medium pizzas with up to 8 toppings each. And the fourth ad is for 4 small pizzas with up to 6 toppings each. The study conducted showed that customers were more favourable to ads 3 and 4. The two ads that limited the toppings. Then they were to the first two ads that offered unlimited toppings even though the first two ads were an economically better deal. Why is that? It's because ads 3 and 4 incorporated multiples of the price. 4 small pizzas with up to 6 toppings each for $24. 4 x 6 = 24 3 medium pizzas with up to 8 toppings each for $24. 3 x 8 = 24 I know it sounds crazy, but psychology can explain it. As children, we were drilled with simple math problems where an association develops between operands. For example, if I say 2 x 6, you immediately think 12. You don't actually have to do any math. It's been ingrained into your brain. You just instinctively know that 2 x 6 is 12. Because of associations like these, your brain processes them more fluently than if we actually had to figure out the sum or product. Back to the Pizza Hut ads, Because ads 3 and 4 contained multiples of the $24 (4 x 6 and 3 x 8, respectively), customers could process the $24 more easily. The price feels right to them. This tactic can be used with small and large prices. A product could be on sale for $15. Next to the price, you could indicate a 3-Day Sale for $5 off (3 x 5 = 15). Someone could offer 4 weekly 30-minute coaching calls for $120 (4 x 30 = 120). A webinar might sell a training course for $500, and as a reward for signing up before the end of the webinar, you'll get 5 bonus eBooks (a value of $100) (5 x 100 = $500) Tactic 12: Use the Right Amount of "Roundedness Instead of using a non-rounded price, such as $97.76, use the rounded price of $98. A study done in 2015 found that round prices are processed fluently, whereas non-rounded prices are processed disfluently. This tactic seems to contradict tactic 9 that I shared with you last week. Tactic 9 said to use precise numbers instead of rounded numbers because people assume rounded prices are artificially higher as if you plucked them from thin air. However, there is a time when round numbers are preferred. And that's when emotion plays a part. It turns out that rounded prices because they are fluently processed, work better for emotional purchases. The opposite is true for non-rounded prices, causing people to use more mental resources to process the numbers. These are good for rational purchases. So if you're trying to appeal to someone's emotions, such as donating to a charity or supporting a fundraiser, remove the cents and round to the nearest dollar. However, if you want someone to make a rational decision, such as buying life insurance, include the cents in the price. Tactic 13: Tailor Prices Toward Names and Birthdays. This tactic is a bit weird, but there is a lot of scientific research to support it. However, I'm not quite sure how you would put it to use. A 2014 study found that customers prefer prices that contain the same letters in their name or birthday. For example, someone named Frank is more agreeable to a product priced at fifty-five dollars because fifty and five both start with F, the same first letter as his name. This principle is called implicit egotism. It causes us to subconsciously gravitate towards things that resemble ourselves, including our names and the numbers on our birthdays. I can't argue with the birthday thing. My birthday is on the 26th, and I know that I notice the number 26 whenever I see it. So maybe the next time you submit a quote to a client, adjust the price to suit their name? $55 for someone named Frank, $66 for someone named Sam. Tactic 14: Show Prices at the Optimal Time Unlike the previous tactic, this one makes a lot of sense. It asks what you should display first, your product or your price? A 2015 study found that the order in which a product and price are displayed influences the buyer's criteria when making their decision. When a product is displayed first and the price next, buyers base their purchase decision on the quality of the product. When the price is displayed before the product, buyers base their purchase decision on the product's value. Put the Product before the price, and people ask themselves, "Do I like this product?" But put the price before the product, and these same people ask themselves, "Is this product worth it?" So how do you put this into practice? The same study determined that if you consider what you sell as a luxury product or service, you want people to base their decision on the product or service quality. Therefore you show the product before the price. A good example of this is a jewellery store. A jewellery store wants customers to focus on the product before they see the price. Hopefully swaying their purchase decision. The opposite is true for utilitarian or economic products, such as flash drives or batteries. You want to display the price first so that customers see the economic value of the purchase. Tactic 15: Display Red Prices to Men This is another tactic I'm not 100% sure of. Probably because it makes men, of which I'm one, seem simple-minded. (Ladies, stop nodding your heads) A 2013 study found that men are more likely to buy something when the price is displayed in red. This study noticed that men process ads less in-depth and use price colour as a visual heuristic to judge the perceived savings offered. Meaning, men are less likely to compare the product's other attributes when presented with a red price. They diminish the importance of the photos and listed features and focus on the red price. Studies have proven that the colour red increases arousal, so maybe that explains it. Tactic 16: Start Negotiating With a High Precise Number. In my opinion, this tactic applies more to products than it does to services, but I suppose you could get it to work. The trick is to use a higher anchor price to drive up the selling price. You'll see this tactic often used with higher-priced items such as cars and furniture. It's often referred to as the MSRP or Manufacturers Suggested Retail Price. When you buy a new car, the sticker on the vehicle will often display two prices: the price the manufacturer suggests and the price the dealer is selling the car for. I can guarantee you that the dealer price is always lower than the MSRP. That MSRP creates an anchor or established value, making the dealer price seem like a great deal. I suppose you can use this if you offer packages to your clients. For example, you may offer a package of services for $800, but next to it, mention that it's a ($1000) value if they were to buy each service individually. A 2004 study of eBay sales showed that auctions with a higher reserve price – the price that needs to be met for the item to sell. Higher reserve prices create an anchor towards the higher end of the price spectrum, resulting in more people bidding and the seller making more money. Another study done in 2008 found that using a precise value as the anchor price also produced better results. When people were asked to estimate the actual price of a plasma TV based on the suggested retail prices of $4,998, $5,000, or $5,012, the researchers found that the average estimated price was much higher for the two prices that were not rounded. Tactic 17: Expose People to Higher "Incidental" Prices. I just talked about anchor prices and how setting a high anchor price can make the actual price seem like a good deal. That tactic works great with higher-priced items. But what if you're using lower prices? A 2004 study showed that items could sell at a higher price when placed next to higher-priced items. For example, a clothing store sells belts for $15 each. When the belt rack is placed near a rack of $25 pants, the store sells very few belts. However, when they move the belt rack next to a rack of $80, pants belt sales increase. If you're offering a service, it might be a good idea to mention some other higher-priced services you have to make the current selection seem like a great deal. Tactic 18: Expose People to Any High Number Continuing on the topic of anchor prices. This same tactic can be used with not only prices but with any number. A 2003 study did a test with rare wines. They asked participants whether they would purchase a bottle of wine for the dollar amount equal to the last two digits in their social security number. After receiving a YES or No answer, the researchers asked the participants to state the exact dollar amount they would be willing to pay. Remarkably, they found a direct correlation between the purchaser's social security number and the price they would pay for the wine. Those with Social security numbers ending in 00-19 were willing to pay $16 for the wine. Those with Social security numbers ending in 20-39 were willing to pay $26 for the wine. Those with Social security numbers ending in 40-59 were willing to pay $29 for the wine. Those with Social security numbers ending in 60-79 were willing to pay $35 for the wine. Those with Social security numbers ending in 80-99 were willing to pay $56 for the wine. Obviously, you're not going to ask your customers for their social security numbers to come up with a price. But you can expose them to a high anchor number just the same. For example, on my podcast branding website where I sell podcast artwork for $295. I could list below the price that I've designed artwork for over 400 podcasts. Even though 400 isn't a price. It still acts as an anchor, which psychologically affects their perception of the $295, making it seem lower. Check back next week for even more ways to use psychology when displaying prices. Tip of the week How not to miss anything when updating a project. Whenever I have to update or make changes to a previous client project, the first thing I do is colour every element of the project MAGENTA. I colour the text, the lines, and for photos, images and graphics I colour or add a magenta frame to them. Then, as I make the necessary changes or determine that a section doesn't require any changes, I recolour it back to what it should be. Once I'm done, I can quickly look over the project to see if there are any magenta sections I've missed.
undefined
Jul 26, 2021 • 32min

The Psychology Of Pricing: Part 1 - RD264

Use these psychological tactics to change how people see prices. I recently read a very in-depth article by Nick Kolenda on the psychology of pricing. I was so fascinated by what he revealed that I immediately changed some of the ways I display prices for myself and the things I design for my clients. I thought I would save you time by summarizing the 42 research-proven psychological tactics in Nick's article in a podcast series. I'm sure you'll find it very useful in your design business. All studies I reference are linked to in Nick's article, in case you're interested. As Nick puts it, At the end of the day, price is merely a perception. Nothing more. Nothing less. In fact, you can change that perception of how people interpret a price simply by changing the visual traits of the numeral. It's a given. The number 5 is greater than 4. And 6 is greater than 5. But using these psychological pricing techniques, you can actually make prices seem lower - without reducing the actual price. According to a 2002 study, most people don't remember exact prices. Rather, they remember general prices. Have you ever looked at a price, and later when asked about it, only have a general idea of how much it was? When I get home from the grocery store and my wife asked me how much it cost. I don't always remember the exact price. Was it $131 and change, or was it $138 and change? So I might tell her it cost "$130 something dollars." Because humans have such a hazy memory regarding prices, we can use certain psychological tactics to influence people into seeing smaller prices than they realize. Let me get right down to the actual tactics. Tactic 1: Reduce the Left Digit By One You're probably already familiar with this tactic. Reducing the left digit by one creates a perception of a lower price. $199 is viewed as a much better deal than paying $200. Gumroad's conversion rates study shows that pricing things at $0.99 instead of $1 or $2.99 instead of $3, or $5.99 instead of $6 conversion rates increase by 2-3%. According to a 2005 study. Our brains encode numbers so quickly that we register the size of the number before we finish reading the entire number. When reading $1.99, our brain registers it as a dollar something which is lower than $2 something making it more desirable. Nick offered a bonus tip to this tactic. Superscripting or minimizing the digits after the decimal places more emphasis on the number before the decimal. So $1 with a small 99 next to it appears smaller than $1.99 all the same size. Tactic 2: Use Prices With Fewer Syllables I'm a bit skeptical about this tactic. But according to a 2012 study, the more syllables there are, the more mental resources we need to process the information. The same principle applies to numbers. If we spend more mental energy reading a number or price, we falsely perceive that price as larger. The fewer syllables involved, and we perceive that price as smaller. It doesn't matter that you are not saying the number out loud. Your brain does it for you. This same study found that a slightly higher price with fewer syllables was more favourable to people than a lower price with more syllables. For example. $27.82 has 7 syllables. $28.16 has only 5 syllables. There's only $0.34 between the two prices. But people were more inclined to spend the higher amount. As I said, I'm skeptical about this one, but the studies do show it to be true. Tactic 3: Display Prices In A Small Font Size. This one applies to what we do as designers. According to a 2005 study. Human brains conceptualize size with value. If you display the price in a smaller font size, people will perceive the price to be smaller. Another trick is to position larger elements around the price to create a visual hierarchy. The larger elements will make the price visually smaller, which in turn makes the perceived price smaller. The revers works for discounts. Display discounts larger to emphasize their large value. Tactic 4: Remove The Comma. I really like this tactic. According to a 2012 study, removing the comma from a price makes it seem lower. This one ties into tactic 2 of having fewer syllables. A price displayed as $1,499 reads as one-thousand four hundred and ninety-nine–10 syllables. Whereas a price displayed as $1499, without the comma, reads as fourteen ninety-nine–5 syllables. I may be skeptical about the syllables thing. But I cannot argue that $1499 sounds like a better deal than $1,499. Tactic 5: Use Words That Indicate a Reduced Magnitude. According to a 2005 study, the words associated with a price influence people's perceptions of that price. For example. Two identical pairs of inline skates are selling for the same price. Both packages list the same features and benefits. However, one pair emphasized "High Performance" while the other pair emphasized "Low Friction." The pair that emphasized "Low Friction" outsold the other pair. The wording associated with the price caused the perception of the price to change. How can you incorporate this into your design business? Maybe you can promote low-maintenance websites as opposed to high converting websites? I don't know. But it might be worth doing some A/B testing. Tactic 6: Separate the Shipping and Handling. According to a 1998 study, people are more likely to use the base price when making comparisons. By partitioning your price, meaning separate the price into multiple components instead of offering a total price, you lower the base price, which creates a perception of the offer being more affordable. A 2006 test run on eBay showed auctions with an opening bid of $0.01 and a shipping cost of $3.99. Outperformed auctions for the same item with an opening bid of $4 with free shipping. The total prices were identical. And yet, the first one received a lot more traction. Tactic 7: Offer Payments in Installments By offering people an option to pay in smaller increments rather than one lump sum, you anchor their perception on the smaller price. Let's say you are pitching a new website design to a client. Instead of quoting them $6000, quote them three installments of $2000 each. Don't get me wrong. Client's are not stupid. They know that three installments of $2000 are $6000. But by offering installments, you taint their comparison process. Even though the client knows your total price is $6000, if they compare it to another web designer who quotes a total of $6000, you're lower installments will feel much more appealing to them and have a good chance of influencing their decision towards you. Tactic 8: Mention the Daily Equivalence. You see this tactic often used by charities and non-profits. Instead of mentioning the monthly or yearly cost, they share the low daily price. A 1998 study proved that using a daily price creates a perception of an overall lower price. This doesn't mean you shouldn't mention the regular price. In fact, it should still be the primary focus. However, mentioning the daily equivalence anchors people towards the lower end of the price spectrum. For example. Being a member of the Resourceful Designer Community is $14.95/month. That works out to $0.49 per day. Is having a group of fellow design peers who are able and eager to help you grow your business not worth $0.49 per day to you? If so, join today. A bonus tip: if you can't reframe your price into a daily cost, a 1999 study shows that the same thing can be done using petty cash expenses, such as the cost of a cup of coffee. Tactic 9: Be Precise With Large Prices This is one of my favourites out of all of these tactics. It's also the first one I started implementing. When dealing with large prices, people are willing to pay more money when a price is precise instead of rounded. For example, A website project costing $6834 as opposed to a website project costing $6000. Why is that? A rounded price is more suspicious. A client may question how you came up with a nice round price of $6000. Did you pick it out of thin air? Did you calculate the actual cost at $5700 and decided to round it up to $6000? However, a precise number, such as $6834, leaves little room for suspicion. If you are quoting a precise number, clients will readily believe it's the actual price of the project. This thought pattern makes people much more agreeable to the price. A 2007 study analyzing 27,000 real estate transactions showed that home buyers were willing to pay more, often thousands and even tens of thousands of dollars more, for a home listed at a specific price compared to a home listed at a rounded price. These same people were also less likely to negotiate, or if they did, they would negotiate in much smaller increments than those bidding on a home with a rounded asking price. By providing a specific price, such as $6834 for a website instead of $6000, the client is much more likely to trust what you are selling them and be agreeable to the price. As I said, after reading this one, I immediately stopped quoting rounded prices to my clients. It's still too early to tell how it's going, but so far, so good. Want more tactics? Tune in to next week's episode Resource of the week Chrome Application Shortcuts A convenient way to turn a website into a desktop application is by using Chrome Applications Shortcuts. This is especially useful for browser-based tools such as invoicing/bookkeeping and Customer and Project Management Software. Instead of searching through dozens of open browser tabs for the right one, create an application shortcut and treat the webpage as a desktop application. To create a Chrome Application Shortcut, open the website, you would like to turn into an application in a browser tab. On the far right of the address bar, click the three vertical dots. Select "More Tools" > "Create Shortcut" Name the application in the pop-up window and be sure to check "Open as Window." then press Create. A new Application icon will appear in the Chrome Apps folder within your Applications folder. You can now use it just like you would any other application. You can add it to your Dock. You can create Aliases from it. And you can easily switch between it and your other applications via the Control Centre. Give it a try and let me know what you think.
undefined
Jul 19, 2021 • 17min

The Secret To A Happy and Satisfying Design Career - RD263

Do you want to know the secret to a satisfying design career? Let's face it; it's impossible to be completely happy and satisfied with whatever career choice you choose. I mean, even being a professional chocolate taster has its drawbacks. But out of all the gazillion different things you can do with your life. Being a graphic or web designer, at least in my opinion, is one of the more satisfying options out there. Then again, I may be a bit biased. But just like every other career choice out there, being a designer has its ups and downs. You get to make money using your creativity. You get to design things that change peoples' lives. Your creations are displayed for everyone to see and admire. But there's the flipside. Clients don't always have the same vision as you. Some people are demanding to work with. And don't get me started on taxes and all the administrative work involved with being a designer. As I said, ups and downs. Luckily, and I'm sure you'll agree, the life of a designer is filled with more ups than there are downs. That's what keeps us going. But what if I told you that you could increase the number of ups you experience? What if I told you there's a very simple secret that will allow you to have a happier and more satisfying design career? That secret boils down to four words. But hold on, before I tell you those four words, I want to share a scenario with you. Something you've probably experienced yourself at some point in your design career. And if you haven't, give it time. I'm sure you will. Let me know if this sounds familiar. You're hired to design a logo for a client. Being the good designer, you are you hunker down and get to work sketching out dozens, if not hundreds, of different ideas for the logo. Most of these will be dismissed almost as soon as you make them. Some of them you know even before you make them that you won't use them, but you have to get the idea out of your head. Or am I the only one who does that? After a while, you are drawn back to a handful of your ideas that show merit. Some of them you play and tweak, trying this and that until you realize they won't work and discard them. But there are a few that are promising. So you concentrate all your talent and design skills on making them just right. In the end, you are left with two or three logos ideas. You then create a nice presentation, including various mockups to showing how each one would look in real-world situations. Then it's off to present to the client. Even though all three ideas are good, you secretly have your favourite from the bunch. You know, The one you're already picturing in your portfolio. The one you can't wait to show off and let everyone know, "Hey, I designed this logo." Yes, you always have your favourite. Then, of course, there's your second favourite. You don't like it as much as the first one, but still, it's a damn nice logo. Not that there's anything wrong with the third logo. After all, you wouldn't present a logo to a client that you didn't think was good enough, would you? I didn't think so. But logo number three, even though good, doesn't compare to logo one or even logo two. You present your three designs to the client. You may even try to upsell your favourite logo a bit more than the other two. There's no harm in doing that. And then you sit back and wait for the client's decision. You know where I'm going with this, don't you? Regardless of your effort and your desires, the client chooses the third logo. You put on your happy face as you pretend to share in the client's enthusiasm, but in your gut, you feel let down. How could they choose logo number three? Can't they see how great the first logo is? Or even logo number two would have been fine. But no, they chose logo number three. I'm sure this exact scenario is why some designers practice the one-concept approach. They don't offer their client's any options. Instead, they offer them one concept-take it or leave it. If that's how you work, then more power to you. But that's not the way I do things myself. Why did I share this scenario with you? It's because I was hoping you could think about how you would feel in that situation. You were so sure the client was going to fall in love with the same logo you loved. And they didn't. You feel confused. You feel torn. You feel let down. You feel dejected. Remember I told you that the secret to a happy and satisfying design career came down to four words? Well, here they are. IT'S, NOT, ABOUT, YOU. It's not. It has never been, and it never will be. A happy and satisfied designer knows that everything they do is about the client. When you embrace this concept, your design career becomes so much easier. You may have liked logo number one better, and that's fine. But that wasn't the client's choice. To them, logo number three is the best one. And you know what? They're right. At least for them. It's not about what you think. It's about what they think. The client is more than happy with their decision to chose the third logo. And so should you be. After all, they hired you to create something for them, not something for you. Sure, you wish they had chosen the first logo so you can showcase it on your social media and in your portfolio. But it's not your logo; it's theirs. Once you move on to the next design project, you'll give their logo very little thought. On the other hand, the client is going to embrace and live with your creation for hopefully a very long time. So regardless of your preferences, it was never about you. It was always about the client. Remember that. But "It's not about you" doesn't only apply to client preferences in logos. It applies to many aspects of your business. The RFP (Request For Proposal) you submitted gets turned down. The person reviewing it had their reasons for saying no. Maybe you didn't match their criteria. Maybe someone else submitted a better proposal. Maybe the person judging the RFP already had a preference in mind, and the process was just a formality. Regardless, It's not about you. A client turns down your website proposal stating the price is too high. Did you overprice the project? No. You priced it where you thought it should be. The fact that the client thinks it's too expensive is not about you. It's about them. It's about their expectations. Now you do have some control over client expectations. The way you present your proposals, the way you explain the value you bring, the way you show how much of a benefit working with you can be. All these things can help sway a client's expectations. But ultimately, it's not about you. It's about them. They make the decision they think is right for them. And even if you feel it's the wrong decision. It's still not about you. It's all about them. If you remember that it's not about you. It will make every hurdle in your design career much more palatable as long as you do the best that you can. As long as you present the best options. As long as you're sincere and honest in your dealings. Then the results will never be about you. You can be satisfied that you've done everything possible. The final decision is in their hands, and therefore, it's all about them. Hopefully, you'll learn something from the process, take note of it for next time, and then put the whole thing behind you and move on. "It's not about you" applies to smaller things as well. The client doesn't like a suggestion you make. It's not about you. The client doesn't like the colours you chose. It's not about you. The client doesn't like the font you used. It's not about you. The client doesn't like the web feature you added. It's not about you. None of these are about you. And therefore, there's no reason to get upset about them. And even if the client does agree to your price and hires you. Even if they love your choices and ideas, even if the client praises your designs, it's still not about you. You may feel good about it, and you should. But It's still all about them and how they feel. When you learn to embrace an "it's not about you" attitude and learn to let go of all the little things that may upset you about this career. You will notice that your life as a designer will be much happier and much more satisfying. Always remember, your goal as a designer is to make the client happy. You're there to serve them to the best of your ability. In the end, it doesn't matter what you think, because it's not about you. And when your clients are happy with what you do for them. When they come back to you over and over again with more design projects. When they tell everyone about the great services you offer. When they treat you as a trusted partner, well, at that point, maybe it is a little bit about you. Resource of the week Backblaze There are not many tools on my must-have list. Even Divi, my ultimate choice for building WordPress websites, isn't a must-have. But one thing everyone with a computer should have is a backup strategy—a way to safeguard all those precious files you have. And an extra hard drive is not enough. And that's why I believe that no backup strategy is complete without BackBlaze. Backblaze is a cloud backup solution that gives you peace of mind, knowing all of your precious files are safe and secure, regardless of what happens to your computer. You may be thinking, I don't need Backblaze. I have DropBox or Google, or One Drive. Let me tell you that those platforms were never meant to be a backup solution. They're great for storage and file sharing but not for backup. For a true cloud backup solution, you need something that was build just for that purpose. And that's Backblaze. I've had Backblaze installed on every computer I've owned for the past decade. And it's well worth the low yearly cost of the service. Give it a try. You won't be sorry.
undefined
Jun 7, 2021 • 19min

There's No Such Thing As A Bad Client - RD262

Have you ever worked with a bad client? Ok, I have a confession to make. Obviously, bad clients are a thing. I chose this title to get your attention. And it worked. You're here, aren't you? The title I should have chosen is If you do your job right, you should never have to deal with bad clients. But it just doesn't have the same ring to it. I bet if I asked you to recount an experience with a bad client, it wouldn't take you long to think of one. Heck, there are entire websites dedicated to stories of bad clients designers have had to endure. Be warned. Once you start reading the stories, it's hard to stop. What is a bad client? Every designer has their own definition of what makes a bad client. To some, it's their personality. They're demanding or obnoxious. "This is how I want you to do it" or "That's not what I asked for. What's wrong with you?" Or they're too timid and uncommitting, never able to give a firm opinion. "I can't decide. What do you think?" Maybe it's their inability to visualize. For example, "I have no idea what I want, but I'll know it when I see it." or "can you try it like this, and like this, and like this and perhaps like this so I can see what each way looks like?" Bad clients also come in the form of people who reluctantly or flat out don't pay. They don't realize, or they don't care, that as a freelancer or small business, you rely on every bit of income to make a living, and their refusal or tardiness in paying can drastically affect your way of life. Then some clients want something for nothing. They assure you that the exposure you'll get from working on their project will be more valuable than any sum of money you would charge them. The list of bad clients continues with clients who change scope midway through a project. Some do it innocently, asking you to add on small extras, not thinking anything of it. "Can we add an extra page to the website that talks about all the philanthropic work we do?" And some do it not so innocently, trying to squeeze in extras without paying for them. "While you're making the header for our website, can you also supply us copies to fit our Facebook Page, LinkedIn Profile, Twitter and YouTube headers? It's a simple matter of resizing what you already have. It shouldn't take you any time at all." Don't forget the clients who make strange demands. You know the "can you make the logo bigger?" type clients. Or those who expect too much "I searched for 'car dealership' and our brand new website isn't showing up on the first page of Google, what are you going to do about it?" Some clients think they know more about design than you do. Some clients wait until the last possible minute to supply the content you've been waiting months for and still expect the project to be delivered on time. And some clients are so disorganized that you don't know how they're still in business. I could go on and on. There are no shortages of "bad clients." However, there are ways you can minimize, if not eliminate, your interaction with this less than desirable clientele. It all comes down to experience. Minimizing bad clients requires experience. When you first start in the design field, you will encounter bad clients. It's inevitable. Call it an initiation or rite of passage. Treat these bad clients as a learning experience. You have to experience bad clients to be able to spot bad clients. Whenever you work with a bad client, make a mental note of what was undesirable about working with them. Then use that knowledge to help your future self. This could simply be adding a new clause to your contract or starting to use a contract if you're very new. Or you could use that knowledge to spot the red flags and weed out potential bad clients before you start working with them. If you find yourself working with the same type of bad clients over and over again, you're doing something wrong. And that something wrong is not learning from your mistakes. With enough experience and by putting that knowledge to use, you should be able to spot a bad client a mile away and steer clear of them. Turn bad clients into good clients. Don't get me wrong, not all clients who appear bad are actually bad. Some, and I would even hazard a guess that most are uneducated clients. That is, uneducated in the ways of working with a professional designer. Many clients don't understand what creative professionals do, and they don't realize why their requests are so crazy. In these cases, instructing the client on how you operate can turn a potentially bad client into someone who is a pleasure to work with. If you haven't already, I suggest you listen to my seven-part Client Onboarding series. In my Client Onboarding series, I explain the entire process of acquiring a new client, explaining how you operate and laying the foundation for a strong and ongoing relationship with them. Following the steps I outlined in that series can help steer a client from the dark side and turn them into a great client. You're there to help. When a client hires a designer, they have a goal in mind. But they don't necessarily know how to reach that goal and sometimes not even what that goal is. That's where you come in. Through proper communication and an understanding of their problems, the two of you together can set out on a plan to reach a solution. Show the client you understand what they want, and let them know what you need to make it happen. Some clients will get it right away, and others will require a bit of handholding before they understand. Either way, you need to draw clear lines so that both parties know what they're getting into. Remember, most clients don't think like a designer. They don't have the same creative process you have. That puts you in the unique position to lead and educate them on a process that works and results in success for both of you. In the end. Any client who lets you do your work, no matter how demanding, impolite or fussy they are, and who pays you fairly for the work you provide, is a good client. Not every project can be creatively satisfying. Sometimes even the best clients give you boring and mundane projects, and there's not much you can do about it. Unfortunately, that's par for the course. What you can do, however, is chose who you want to work with. Through acquired experience and knowledge gained over time, the day will come when you'll be able to weed out and pass on the less desirable clients who approach you and identify those who need to be educated on how the process works. That should make what you do all the more satisfying. Remember, the only truly "bad clients" are the ones you take on despite your better judgement. Trust your gut. It won't let you down. Resource of the week Nested Pages. Nested Pages is a simple and yet useful WordPress plugin that provides a simple and intuitive drag and drop interface for managing your page structure and post orders. It allows you to add multiple pages and posts to a site quickly. And, if you want, it can automatically generate a native WordPress menu that matches your page structure.
undefined
May 24, 2021 • 27min

Putting Yourself Out There With Presentations - RD261

Have you ever given a presentation? This Bootstrap Advertising series is to help give you ideas to use to gain exposure for your design business. Because after all, people won't hire you if they don't know about you. So far in this series, I've covered Bartering Your Services For Exposure, Promoting Yourself On Client Projects and Getting Free Media Exposure With Press Releases. But in my opinion, one method trumps all of those, and that's making presentations. Making presentations is one of the best ways to get exposure and actually land new design work. Almost every time I make a presentation, I end up with at least one new client. I'm not talking about design pitches or presenting to your clients. I'm talking about getting up in front of a group of people and presenting on a topic that is beneficial to them, AND paints you as an expert when it comes to that area. Did I lose you? I know that many designers are introverts, and the thought of getting up in front of a group of people sounds terrifying. However, if you can find it within yourself to conquer that fear, I can almost guarantee it will be worth it. Save your trepidations for now and hear me out. Who knows, I may convert you. Why Presentations? Presentations are a great way to educate people on the part of the business industry that you are familiar with—design. It may be branding, marketing, advertising, online presence through websites or social media, or any other design aspect that the average business owner might find useful. Regardless of what aspect of design you decide to present, just the fact that you are presenting it gives you credibility in the eyes of those watching. The fact that you are presenting to them, that you are educating them, that you are bestowing valuable knowledge that will help improve their businesses elevates the way they see you. They may have known you before as just another graphic designer, but you graduate to becoming an expert once you present. And as an expert, you become someone they admire and look up to. And when it comes to hiring a designer, who do you think they'll consider? One of the many designers from your area? Or, the expert designer they admire because you gave them valuable advice during a presentation? It sounds strange, but it's true. In March of 2020, I was at a podcast conference in Orlando, Florida. A few of us designers met up for an impromptu get-together in the hallway outside the conference rooms. We had a very in-depth conversation on the impact good design has on the success of a podcast. As with any conference, several other attendees, non-designers migrated their way to our conversation. They were curious as to how design could help their shows. My fellow designers were very knowledgeable, and we had a great discussion. It was obvious to anyone listening that each one of us knew what we were talking about. During our conversation, I mentioned I was presenting the following day on the importance of good podcast cover artwork to help grow a show. When we were done, and we parted ways, several podcasters stopped me to ask questions. The other designers walked away unaccosted while I had a small gathering around me. These people chose me because I was a presenter at the conference. I hadn't even presented yet, but the fact that I was, was enough to elevate my status above the other designers as far as these podcasters were concerned. The conference had chosen me to present; therefore, I must be someone worth listening to. That's the power of presenting. It elevates you in the eyes of those you talk to. And you know what? A couple of those people hired me to help brand their podcast. And I gained several more new clients after my presentation. It works. Where can you give presentations? You may be thinking, "That's easy for you Mark, you started a podcast branding business, so it makes sense for you to present at a podcast conference. But I don't have a niche like you. So where am I supposed to present?" I'm glad you asked. You don't have to travel to big conferences with thousands of people in attendance to present. There are many opportunities for you around where you live. In fact, presenting close to home is even more beneficial because you have the bonus of word of mouth afterwards. "You're looking for a designer? I heard so-and-so present recently, and they really knew what they were talking about. So you should give them a call." Places you can give presentations. Chamber of Commerce. Special events. Small business month (October) Business trade shows Business Associations Municipal Business Associations (Downtown, Waterfront, Central, etc.) Women's Business Associations People of Colour Business Associations LGBTQ+ Business Associations. Business Enterprise Center Small business startup presentations Entrepreneurial help presentations Municipal Events Lunch and a talk Business growth seminars Local Library Themed Presentations All sorts of presentations Networking groups Local Networking Groups National Networking Groups Co-working spaces Business Growth Sessions Schools Present to Business Students Present to Marketing Students Present to Design Students If you look around, I'm sure you can find places or venues around your area that would love to host your presentation. And don't just look for existing opportunities. Make them. Approach your Chamber, library, Business enterprise center, etc. and ask them if you can put on a presentation. Many of them would be happy to accommodate you. What to present? The idea behind any good presentation is to keep it simple and keep it focused. How much you present is determined by the time allotted to you and to whom you're presenting. In most cases, pick one topic to talk about. The broader your presentation, the more confusing it will be. The more focused it is, the more memorable it will be. The best presentations provide 2 to 3 pieces of actionable advice at the most. But, of course, one piece of actionable advice is even better. Instead of giving a presentation on branding a business, which entails a lot. Give a presentation on choosing a colour palette. The idea is to narrow down the topic so as not to confuse people. Possible presentation topics include: How Landing pages can help increase website conversions. How to focus on benefits instead of features in your marketing material. How to understand Web analytics. The importance of consistency with your visual assets. Who you're presenting to will help you decide on what topic to chose. For example, if you're talking to a group of retailers, you may want to talk about increasing sales by marketing with floor decals. Or how different colours on a website can increase conversions. If you're talking to a group of new entrepreneurs, you may want to talk about using visual assets to help build a brand. Or the importance of creating visual assets that appeal to their target market, not just the business owner. If you're talking to a mixed group of businesspeople, you may want to talk about the importance of branding in social media. Or how to identify your competition. That's actually a good one. Unfortunately, many new business people don't know how to identify their competition. The skies the limit to the number of topics available to present. And if you find yourself unable to narrow down your topic, maybe consider doing a series of presentations instead of just one. Whatever works. Making presentations works. In my opinion, presenting is one of the best ways to garner exposure for your business without spending anything. Not only that, but there's an excellent chance that you pick up some work from it. It's worked for me time after time. Over the years, I've made presentations at: Chamber of Commerce events. At a Starter Business seminar put on by our local Business Enterprise Centre. A business series put on by our local library. At several local schools. At networking events. At trade shows. At conferences. And more. And almost every time I gave a presentation, I gained new clients from those who attended. So try to get over your fear if presenting is not something you're used to doing. It helps to start small and work your way up. Like anything else, the more you do it, the more comfortable you'll become. As you get better at presenting, you'll discover people will invite you to speak at their events. Who knows, maybe someday you'll actually get paid to present. Now wouldn't that be nice? Until then, try to settle with the new clients that come your way from those you help. Presenting, it's worth looking into if you're not already doing it. Remember, the idea behind this Bootstrap Advertising series is to get your name out there. To get as much exposure for your business without having to spend anything doing it. I believe in you. So go out and do it. Resource of the week Swatchos.com Swatchos is a deck of 130 cards to help you choose colours for your design projects. Each card has one clour on the front and six on the back. The front is the primary colour, and the back shows darker and lighter versions of the colour on the front. That's 903 colours in total with millions of possible combinations. Each colour shows the CMYK value and the Hex Code. And because they're cards and not in a book, like the Pantone swatch books, they're really easy to mix and match to find that perfect colour combination. And once you do find that perfect combo. Use the downloadable swatch files for Adobe CC and pick the colours within your favourite applications. I bought my deck through a Kickstarter campaign. But you can get yours by visiting swatchos.com. There's a link at the top of the page to where you can purchase your deck.
undefined
May 17, 2021 • 23min

Getting Free Media Exposure - RD260

Use Press Releases To Get Media Exposure. In parts one and two of this bootstrap advertising series, I talked about bartering your design services for exposure and promoting yourself on your client projects. Two great ways to get your name out there. After all, the more people there are who know about you and the services you offer, the more successful you will be. Both bartering for exposure and putting your name on client projects are great methods of spreading your name. But that's all they do. They don't offer any form of credibility or positioning. Sure, people can't hire you if they don't know about you. But just knowing about you doesn't guarantee they'll contact you when they need a designer. Especially if all they know about you is your name. Media coverage, on the other hand, gives you credibility. It means you're "important" enough to merit mentioning. And that publicity can mean the difference between someone just knowing about you and someone hiring you. When combined, these different forms of exposure leave a powerful impression that can lead to more business. But how do you get media exposure? Send out press releases. The easiest way to get media coverage is by submitting a press release for each of your accomplishments. A press release is sometimes called a "press statement," a "news release," or a "media release," which is an official way to inform the media about something you deem important. Media could be newspapers, radio or tv stations. It might be blogs, magazines, podcasts, social media channels, YouTube channels or industry journals. Any platform people visit for current information is considered media. And most media outlets are constantly looking for new stories to cover, especially on slower news days. Press releases are a great way for media outlets to add "filler content" to their platform. Then, if they deem the press release to be newsworthy, they'll write or report on it. It's that simple. Don't forget other places that may be interested in your special announcements. If you're a member of your Chamber of Commerce or similar associations, send them your press release. They may publish it in their newsletter. If you attended design school, send your press release to the school. Most schools love hearing and sharing the good news about their alumni. Lastly, reach out to any industry-specific platforms related to the announcement you are making. For example, if you designed new signage for a local law office, send your press release to any law-related publications or outlets that may cover your story. The purpose of a press release isn't just for recognition and publicity; although it is the principal reason, most media outlets that run your story will also include a link to your website. And every backlink to your website, especially from recognized news outlets or schools, helps to boost your position in the search rankings. What merits a press release? Any time you do something somewhat "newsworthy," you should send out a press release. This includes any time you... Offer a new service Complete a big project Win an award You are recognized for an achievement You reach a milestone If you take on a partner Any exciting news you would share with family, friends and peers might be worthy of a press release. When Resourceful Designer was a finalist for a People's Choice Podcast Awards, I sent a press release to my local media. It must have been a very slow news day because my story appeared on the front page of my local newspaper. All because I sent a press release. When my local Chamber of Commerce told me the cover I designed for their printed club directory won an award at a national Chamber of Commerce event, I sent a press release. The story was covered by two local newspapers and one of our radio stations. When I was awarded the contract to design the event program to unveil a new Canadian National Heritage site, I sent a press release, and several media outlets shared the story. When I launched my secondary design business, Podcast Branding, I sent a press release to everyone who covers news in the podcast space. Many of them mentioned my new business. Sending out a press release is an amazing way to get media exposure for your design business. How to write a press release. A press release is usually one page, two at the most, with succinct information on what you want the media to know. The idea is to give the reader the details so they can, in turn, write or compose their own story. Rarely will the media publish your press release word for word. Instead, in some cases, they'll compose something based on what you submit, and in other cases, they'll contact you for an interview or perhaps invite you to appear on their program. The generally accepted format for a press release is as follows. 1. Title. Your press release title is important. The more irresistible you make it, the better your chances of it being picked up. If required, you can use an italicized subheading to summarize the news you're sharing. Make your titles stand out. For example, instead of "Designer builds a website for local business," which is pretty boring. Write something like "Business hires local designer and sees online revenue soar." That's something people want to hear about. 2. The body. The body of your press release has to grab whoever is reading it. Chances are the person reading your release gets dozens, if not hundreds of them each day. So the quicker you grab their attention, the better your chances of them using your story. It's customary for your first paragraph to start with the city you are in so they know where the story relates to. In my case, I would start the first paragraph of my press release with – Cornwall, Ontario: and then introduce my story. Your first paragraph needs to cover not only who you are but the what, why, where, and how of whatever it is you're telling them. Please keep it to the facts without any fluff. They should know everything they need to know about your story after reading that first paragraph. Once you've set the scene with your first paragraph, the rest of the paragraphs in your release help fill in the details and give them any other pertinent information with greater detail that will help them paint a picture of what they can write. How has what you've done made an impact? How has it changed the client? How will people benefit from it? What makes it newsworthy. If applicable, provide a direct quote they can use in the story they write about you. For example, when I submitted the press release about the Canadian heritage site, I included a quote something like this. "it's an honour to be chosen for this project out of the many talented graphic designers from across Canada." The writer assigned to my story used my quote in his article. You should also provide any background information on the press release subject, such as why you undertook the project or what you won the award for. The reader already has most of the vital information they need. Don't provide superfluous facts or such about you, your company or the announcement. Remember, a press release needs to be concise. But do offer any details that strengthen your narratives, such as any creative ways you accomplished your announcement or any struggles you had to overcome. If you can, comment on the future implications of your announcements. For example, in the case of a new client website, you may want to say the company expects to double their income with their new online sales. Just make sure the information is factual. 3. Your last paragraph. The last paragraph of your press release should summarize who you are and what you do. In plain English, list your company name, your name and title, the full URL to your website, and your email address and phone number should they need to contact you. Follow that information with pertinent details such as how long you've been in business, What you offer, for example, "Graphic and web design services," and any awards or recognition you've received. 4. Photos It's a good idea to include a headshot of yourself and a photo that relates to the announcement. When my Resourceful Designer story was published on the front page of our newspaper, I included a photo of me sitting in front of my microphone with the press release. Attach any photos to your press release if you're submitting them by email. It's also a good idea to upload them online and include a URL link where the reporter can download them. Just in case something happens to the attachments you send. The very last thing on your press release should be three octothorps. Or as you may know them by Hashtags or Number signs. ### This is the traditional way to mark the end of a press release and is still appreciated by the media. It informs the reader that there is no more information to read. Tips to submitting press releases If you know a specific journalist, try sending your press release directly to them instead of the general news@ address. You'll have a much better chance of having your press release seen. Give them enough time. Most media outlets release stories at specific times of the day. TV news, for example, often airs at noon, 6 pm and 11 pm. So send your press release early enough for your best chance to get in on the next news cycle. And lastly, if your announcement does get picked up, be sure to share it as much as possible to help spread the word. Keep the buzz going for as long as you can. That's how you submit a press release. Just because you submit a press release doesn't mean they will use your story. If you're lucky and it's a slow news day, there's a better chance they'll use your press release. But it is hit and miss. However, when they are used, the media exposure you get from it is a great form of publicity. As I said initially, when someone sees, hears or reads about you in the media, it increases your clout. It strengthens the mantle of the professional that you are. And it gives you credibility in the eyes of those who see or hear it. And all of that is great exposure. And it doesn't cost you a cent. For more information about press releases, read this great article by Hubspot. It includes a free press release template kit for you to download. Resource of the week Designers Available Simply put, Designers Available connect social justice organizations with pro bono designers. Let me stress, this is not a platform for getting paying clients. This is an opportunity for you to put your design skills to work for causes you can get behind. As stated on the website, Designers Available is an opportunity for designers to use their skills and abilities to support the work of community organizations, non-profits, social causes and movements. Upon submitting your name, you will be included in a member network that receives regular calls for designers to be matched with organizations. If this sounds like something you would be interested in please visit designersavailable.com
undefined
May 10, 2021 • 26min

Promoting Yourself On Client Projects - RD259

Get your name out there. In part one of this Bootstrap Advertising series, I discussed bartering your services to get exposure. This week I'm sharing more ways to get exposure by promoting yourself on client projects. Exposure means making people aware of your design business. After all, People cannot hire you if they don't know you exist. So the goal here is to get your name, business name, and logo in front of as many people as possible. This form of promotion is called a shotgun approach. There's nothing scientific or targeted about it. Instead, you hit the masses and hope that someone who sees it needs or knows someone in need of your services. This "spray and pray" approach doesn't cost you anything and is a great method of bootstrap advertising. If you're not familiar with the term bootstrap or bootstrapping, it means promoting or developing by initiative and effort with little or no assistance. In other words, bootstrap advertising is getting your name out there with minimal effort and practically zero expense on your part. Let me share two methods you can promote yourself on client projects. Put your name on everything project you design. My stance is if I design something, my name deserves to be on it, from websites to posters, brochures, car wraps, wedding invitations and more. If I can get away with it, I put my name on it. I've learned over the years that, as the adage goes, "it's better to ask for forgiveness than it is to ask for permission?" If you ask a client if it's ok to put your name on their project, there's a 50/50 chance they'll say no; they'd prefer you don't. And many times, they'll ask if they get a discount if your name appears on their project. However, if you include your name on the initial project proof without asking, only one in twenty clients will ask you to remove it. That's why I never ask a client if I can put my name on their project. Instead, I present the work with my name and sometimes logo already there. Should the client ask me to remove it, I'll take it off without a fuss. But in my experience, there have been very few clients who have asked me to take it off. My name or logo appears in small inconspicuous corners of the project for printed work—kind of like an artist's signature. On a poster, I include it in the bottom corner. I try to include it on the back cover of a brochure, sometimes running vertically along the spine. If it's a book or booklet, and I can't put it on the back cover, I'll try to include it on the inside front cover somewhere. Over the years, I've included my name on Posters brochures, flyers and rack cards books and booklets door hangers reports pocket folders event tickets invitations stickers and decals Vehicle wraps Window signage Banners and many more items I can't think of right now. I've even included my name and logo on trade show booths. I've designed several pop-up or roll-up banners as well as many backdrop walls for trade shows, and I've included my name and logo on the bottom right corner of all of them. For websites, the obvious place is the footer, or sometimes on a separate bar below the footer. Divi makes this really easy. Sometimes, when I do T-Shirts, I'll have my screen printer add my logo to the sleeve with my client's permission. My screen printer is a great guy, and depending on the size of the order, he'll add my logo to the sleeve at no extra cost. Think about it. Everyone walking around wearing one of these shirts has my name displayed on their sleeve. So whenever possible, I try to include my name on every printed piece I design. Showcasing yourself via an ad. I'm a bit surprised how well the following method works. Have you ever designed something for a client that includes boxes for ads? I've designed event programs, maps, placemats, pocket folders, magazine layouts, and more for clients. What all of these had in common were advertising spots the client could sell. Take a program for a local theatre company, for example. The program contains information about the theatre company, the play their performing, the cast, perhaps upcoming plays, etc. The theatre company then sells the extra space in the program as ad spots to cover the printing costs. The way these sort of projects work is the client has the program designed, and once all the pertinent information is in place, they are supplied with a PDF to see how much available space is left for ads. When I present the client with this initial proof, I include an ad for my business in one of the spots. I tell them it's so they can show potential advertisers what an ad may look like. And you know what? 75% of the time, the client leaves my ad in the program. Of course, I'll gladly remove my ad if they ask me to, but they rarely do. And not once have they ever asked me to pay for my ad spot. Over the years, I've had ads show up for free in programs for theatre productions, sporting events, entertaining events, fairs and festivals and other things. In addition, I've had my ad appear on local maps, paper diner placemats, on the back of pocket folders that real estate agents and mortgage brokers hand out to their clients, and even in a couple of local business magazines. All because the initial project proof included my ad, and the client never asked me to remove it. Funny story, one client actually apologized, saying they had oversold the allotted ad spots and asked if I would be willing to give up my spot to accommodate it. Of course, I said yes. These were all free advertising opportunities gaining good exposure for my design business. All because I took the time to include an ad in the initial proof. I designed a website for a local association that includes three ad spots on the home page. They planned to sell these ad spots to association members to promote their businesses. When I designed the website, instead of leaving the three spots blank, I included my ad in one of them. That was in 2017, and even though I'm not a member of the association, my ad is still there. The other two ads have changed over the years, but they've never removed mine. When given the opportunity, present the proof to your client with a "temporary" ad, and cross your fingers that they don't remove it. These are two great ways to get free advertising for your design business without spending anything. Why it works. The idea behind this is to get your name out there. If people don't know about you, there's zero chance they'll hire you. By putting your name on as many things as you can, those who see it will take notice. Imagine a new entrepreneur looking for a designer to help brand their new business. They remember seeing your name on a store poster, in an event program, on their kid's dance recital t-shirt and in a local magazine. They're going to think, wow, this person must be good since I see their name everywhere. A lot of people must trust him/her. That confidence, along with repeated recognition, is good enough for them to reach out and hire you for their project. All because you included your name on everything you could. I've been doing this ever since I started my design business, and I can tell you, it works. The more people who know about you, the more successful you will be. Isn't that what you're going for? A side benefit of putting your name on everything is that the contact people you deal with at your clients may change. Sally may retire, and Jason takes her place. Maybe Sally forgot to inform Jason who their designer is. Luckily for you, you've included your name on everything you've designed for that client, making it very easy for Jason to know who to contact. That's yet another reason to put your name on everything. Resource of the week pixsy.com This week's resource of the week is a great tool for photographers and illustrators to keep track, or should I say, stay on top of who is using their images. If you sell your images through any stock image platform, you're often left wondering what people are doing with the images they purchase. Pixsy.com allows you to discover where and how your images are being used online. It's also a great resource for battling image theft. Find out who is using your copyrighted material and use Pixsy's tools to help you resolve the issues. Best of all, you can start with their free plan and only upgrade if you need to take advantage of one of their premium features, such as issuing a takedown notice. As I said, if you are a photographer or illustrator, you'll want to bookmark Pixsy.com and take a stand in the battle over Copywrite theft.
undefined
May 3, 2021 • 21min

Bartering Design Services For Exposure - RD258

Do you ever barter for exposure? Working for exposure. That thought is the bane of most designers. A client asks you to use your valuable time and skills to benefit them. And in exchange, they'll tell everyone they know about the great services you offer. It's a win-win for both of you. They promise you fame and fortune if only you do this project for them... for free, or at a vast discount. It's a crock full of s**t if you ask me or any other designer who's ever been presented with a similar offer. Those clients don't care about you. And they will never be advocates for your services. If they do tell someone about you, it will be in the context of "offer them exposure, and they'll give you a great deal." Is that really the reputation you want as a designer? of course it isn't. You should never agree to a request to exchange your services for exposure. But that's not the same thing as you bartering for exposure. Let me ask you a question. You've probably spent some if not a great deal of time stuck at home during the 2020 pandemic. During that time, did you ever order out for a meal? How many times did you order from a restaurant you had never heard of before? I don't mean a place you recently found out about through family, friends or colleagues. How many times did you order from a restaurant you've never heard of? Of course, that's a trick question. If you've never heard of a place, how are you supposed to order from them? The same applies to your design business. Nobody is going to hire you if they don't know you exist. Sure they can google designers in your area and stumble across your website. That might be all they need to reach out. But there has to be some intent for that to happen. The person needs to be seeking a designer. But how can you let that person know about you and your services if they are not currently seeking a designer? The only way is through exposure. What is exposure? According to the Merriam-Webster dictionary, the definition of exposure is: Exposure: the fact or condition of being exposed: such as the condition of being presented to view or made known. In other words, getting exposure means making people aware of your design business. And once people are aware of you and what you can offer them. They are much more likely to think of you the next time they need a designer. Think about it. If you wanted to order a pizza and, for some reason, your regular place is closed. Wouldn't you order from the next place you're most aware of? Would you order from a pizza joint you had never heard about and just found through a google search? Or would you choose the pizza place whose ads you've seen over and over, who's commercials you've seen or heard, who's delivery vehicles you've spotted around town? Chances are you would choose the one you are most familiar with, even though that familiarity is only perceptual since you've never eaten one of their pizzas before. You would choose them because you've been exposed to them. There's a whole industry based upon this principle of exposure. It's called advertising. Needless to say, the more you get your name out there, so people become familiar with you and what you do, the more successful your design business will become. But how do you get your name in front of people without spending a truckload of money on advertising? You barter for exposure. I talked about bartering in episode 47 of the podcast. In that episode, I talked mostly about bartering for goods. For example, I acquired my custom-built desk through bartering. I designed a website for a woodworking client in exchange for him building my desk. As a result, I only had to pay for the wood. That's bartering. Exchanging one good or service for another without the exchange of money. Bartering for exposure works on the same principle, except instead of getting a physical product or service back, you are compensated for your time and effort through exposure. That exposure can come in many forms, but they all come down to a form of advertising. Case study #1 Every year I design a T-Shirt, free of charge, for a local children's dance studio. I make money by brokering the printed shirts, but I have never charged her for the design on the shirt. In exchange, I get a full-page ad in their yearly dance recital program. This gives me exposure to hundreds of people every year. We've had this arrangement ever since I started my design business. Without fail, in the weeks following the dance recital, I'm almost guaranteed to get at least one and oftentimes several inquiries from parents of the dancers saying they saw my ad in the program. Case study #2 Our city used to host one of the largest hot air balloon festivals in North America until it folded a few years ago. The festival was one of my biggest clients. I did all sorts of design work for them, and it paid very well. One of the arrangements I made with them early on was that I would offer them a discount for being listed as one of the event sponsors. As a sponsor of the event, my logo was prominent in all their marketing. It also appeared on the fence surrounding the festival grounds, and it appeared on the baskets of one of the hot air balloons. Every time that ballon went up, you could see my logo on the basket. It was giving me exposure. Case study #3 Every year our local fire hall hosts a firefighter challenge. Firefighters from all over the region come to compete. When they hired me to be their designer, I suggested a deal. I would max their bill at five hours of work, regardless of how much time I actually spent on their job. In exchange, I would be listed as a Bronze sponsor of the event, which meant my logo showed up on all their promotional material, giving me more exposure. Case study #4 A few years ago, I was asked to design something for a charity Christmas fundraiser. They had a dozen or so fully decorated Christmas trees they were auctioning off. They didn't have a lot of money and were asking for a discount. However, it was a good cause, so I suggested that they place a sign in front of one of the trees listing me as the sponsor for that tree in exchange for my services. They thought it was such a good idea that they found sponsors for all the trees. I have no idea how much they charged for the spots, but mine didn't cost me anything but my time. And it gave me great exposure. Case study #5 The last story I want to share with you is about a local theatre company. I built their website and designed the posters, ads, tickets and other marketing material for every play they put on. I was brokering all the print material. When I noticed the theatre company's tickets were only printed on one side, I made them an offer. I asked them to allow me to put an ad for my design business on the back of the tickets In exchange for free website hosting. I agreed to pay the difference in print costs which worked out to nothing since I made money on the print brokering. For every play they put on, every ticket holder saw my ad. Over the years, I gain many new clients through that exposure. Get Exposure I think you get the point. In each of these cases, I took advantage of a way to get my name in front of more people. The more people who saw it, the better the chance they would call me the next time they needed a designer or the better the chance they would pass my name along the next time they heard of someone needing a designer. Just like for a restaurant to succeed, people have to know about it. So likewise, your design business cannot succeed if people aren't aware of you. And one of the easiest ways to gain exposure is to take advantage of your current clients and barter a way to get your name out there. Even if each method only brings in one or two clients, they are clients you wouldn't have had otherwise. And the more you do it, the more it adds up. So whenever you have the opportunity, I suggest you barter for exposure. Resource of the week MailChimp A great way to gain exposure is through a newsletter. Exposure isn't just for people who don't know about you. Exposure helps those familiar with you keep you top of mind for the next time they require your services. My favourite tool for creating a newsletter is MailChimp. I won't lie. I like them because their free plan lets you have up to 2000 contacts, which means you can go a long way into building your mailing list before it starts costing you anything. Although many options are not available on MailChimp's free plan, I think it's a great way to start. When you eventually outgrow the free plan, you can then decide if you want to upgrade to one of MailChimp's paid plans. Or if you want to export your list and move to a different email marketing platform.

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app