Reap Marketing previously priced its digital marketing testing services based on staff hours, but the director realized pricing based on client value delivered could increase revenues. The director created a tiered offering structure and presentation templates focusing on client ROI projections rather than costs. This led to closing three new deals in three months, an 800% larger pipeline, and selling their first large enterprise offering for 300% more revenue.

1. Lou McErlean
5809 Brushy Creek Trail
Dallas, Texas 75252
972-571-0448
lou.mcerlean@gmail.com
SUCCESS STORY: Effectively Pricing and Selling an Offering Based on Value, not Cost
SITUATION: Reap Marketing is a boutique digital agency specializing in eCommerce Conversion Rate
Optimization. The primary offering was A/B and multivariate testing services to help clients increase order
volume, decrease cart abandonment, and the like. Prior to my arrival as BizDev Director, Reap had priced
its testing offerings based on staff person hours required to complete the work.
SOLUTION: Recognizing that past Reap engagements had delivered significant increases for other
eCommerce clients, I realized that Reap could increase its revenues of engagements by charging based on
the value delivered, versus the cost of execution.
ACTION: After creating a 3-tiered offering structure, I created presentation templates which allowed us to
present our offerings based on the prospect’s projected ROI, rather than their out-of-pocket expenditures.
We would get several data points from what prospects were doing currently, plug them into our
calculations, and then make projections based on like engagements.
RESULTS:
• Closed three new engagements within first three months.
• Increased the pipeline by 800%.
• Created/Sold company’s first ever enterprise-level offering, increasing deal size by 300%.