Agency OperationsPricing Strategy

How to Set Up Profitable Agency Packages

Custom quotes are a pain. Client A asks for a website. You spend 2 hours scoping.

Client B asks for similar work. You scope again. No consistency.

Packages solve this. You have three website packages. Client asks for website.

You show them packages. They pick one. You win a 4-hour proposal process.

More importantly, packages let you improve margins. You learn which packages are profitable (charge more) and which are unprofitable (retire them).

How To Build Packages

Step 1: Analyze past projects

Look at your last 30 projects. What are the most common types?

Example: You did 30 projects. They fell into:

  • Small websites (5-10 pages): 10 projects average $8K
  • E-commerce sites: 8 projects average $15K
  • Brand identity: 7 projects average $12K
  • Other: 5 projects

You have three natural packages here.

Step 2: Set package scope clearly

For each package, define exactly what's included.

Starter Website Package:

  • Includes: up to 8 pages, one round of revisions, mobile responsive
  • Does not include: e-commerce, custom functionality, SEO optimization
  • Timeline: 6 weeks
  • Price: $10K

Pro Website Package:

  • Includes: up to 15 pages, two rounds of revisions, mobile responsive, basic SEO
  • Does not include: e-commerce, custom functionality, ongoing support
  • Timeline: 8 weeks
  • Price: $16K

Enterprise Website Package:

  • Includes: unlimited pages, custom functionality, two rounds of revisions, mobile responsive, SEO optimization
  • Timeline: Custom (usually 10-12 weeks)
  • Price: $25K+

Step 3: Test packages in the market

Offer packages to new clients. Track:

  • How many pick each package?
  • What do they ask to change?
  • Are you profitable at that price?

After 20 clients with packages, you'll know what works.

Step 4: Adjust packages based on data

The Starter package is getting no traction. Everyone wants more. Replace it with a mid-range package.

The Pro package is always getting upsold. You're handling 15-page projects for $16K profit. Raise the price to $18K.

Three-Tier Package Strategy

Most agencies do best with three tiers:

  • Starter: Entry-level, 60-70% of buyers pick this
  • Professional: Sweet spot, 25-30% of buyers pick this
  • Enterprise: Premium, 5-10% of buyers pick this

Price them:

  • Starter: $5-10K
  • Professional: $10-18K (1.5-2x starter)
  • Enterprise: $20-40K+ (2-4x starter)

Having three tiers lets clients feel like they're choosing. It anchors pricing (Enterprise feels expensive, Professional feels reasonable).

Packaging For Services (Not Just Projects)

You can package retainers too:

Starter Monthly Retainer:

  • 20 hours/month of design work
  • Social media content creation (4 posts/week)
  • Monthly strategy call
  • Price: $3,500/month

Professional Monthly Retainer:

  • 40 hours/month of design and development
  • Social media content creation (5 posts/week)
  • Paid ads management and optimization
  • Bi-weekly strategy calls
  • Price: $6,500/month

Enterprise Monthly Retainer:

  • 80 hours/month of design, development, and strategy
  • Content creation and copywriting
  • Paid ads management, optimization, and reporting
  • Weekly strategy calls
  • Quarterly business reviews
  • Price: $12,000/month

How To Price Packages

Price them based on cost plus margin, not arbitrary:

Starter Website Package costs:

  • 40 billable hours at $100/hour = $4,000
  • Overhead allocation (20%): $800
  • Total cost: $4,800
  • Target margin: 50%
  • Price: $9,600 → round to $10K

Professional:

  • 60 billable hours at $100/hour = $6,000
  • Overhead: $1,200
  • Total cost: $7,200
  • Target margin: 50%
  • Price: $14,400 → round to $14K

Enterprise:

  • 100 billable hours at $100/hour = $10,000
  • Overhead: $2,000
  • Total cost: $12,000
  • Target margin: 50%
  • Price: $24,000 → round to $25K

This ensures each package is profitable.

The Package Conversation

Client comes in: "I want a website."

You: "Great. I have three packages.

Let me walk you through them. Most of my clients are in the Professional tier, but it depends on your needs."

Show the three packages. Let them choose.

If they want something custom: "That's outside these packages. Let me scope it and send a custom quote."

Updating Packages Quarterly

Review your packages quarterly:

  • Are you always overservicing (clients ask for more than quoted)? Raise the price or reduce scope.
  • Are you always underutilizing (you're done in half the time)? Raise the price.
  • Is a package not selling? Kill it or revise it.

Never keep a package that's losing money or uncompetitive.

FAQ

What if a client wants a custom package?

You can offer it, but charge a premium. "That's custom scope, so we'd quote at $X instead of using a standard package."

Custom is more expensive than packages because you lose the efficiency of repetition.

Should I have the same packages across all services?

No. Your web packages are different from your branding packages. Create packages for each service.

Do clients actually want packages or do they want custom quotes?

Clients love packages. Packages look professional.

Packages show you know your business. Packages speed up the sales process.

The only clients who want custom quotes are tire-kickers or people who want to negotiate. Skip them.

Can I change package prices mid-year?

Yes. Increase prices 10-15% for new clients. Existing clients usually honor their quoted price unless you're renewing contracts.

What if a client's needs don't fit any package?

Quote custom and charge 20-30% premium over package pricing. This incentivizes package purchases and compensates you for custom work.

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