Help with PRICING models

May 21, 2012

Shane Robinson
By Shane Robinson

Hello,

I could use some tips or guidance on coming up with a pricing model for my company to use for our E-Learning deliverables. I am working for a small boutique training company in PA.  What's your take on what a fair price is for a medium-complexity wbt course, built in Articulate Presenter, 1 hour seat time, that the client keeps on CD? Our sales director has mentioned giving a price based on the client's target audience being 180 people...saying he could sell it as $75/employee...so $13, 500. It is not a hosted solution at this point and NOT being set up to charge the client on a per use basis. However, I am wondering if someone has found a general rule or 'golden mean' for pricing their work. It would be great to know what small to medium size companies are paying for E-Learning so that we are competitive as well.

Thanks much!

Shane 

3 Replies
Shane Robinson
almost 12 years ago05/21/12 at 11:26 am (UTC)

I found an older post that was similar but not exactly what I am asking here. So, let me try to guard against getting the same responses as that thread got. To clarify:

I'm looking for someone with real-world boutique training company experience, to throw out some ball park figures on what their compnanies are charging small to medium size businesses for a 1 hour medium-complexity e-learning course built with Articulate Presenter, from the client's PPT deck.

Basically, I need a range. Can someone provide a price-range that works for clients in that market (small to medium size) that they have found from experience, just works. I would imagine that someone could say "don't settle for anything less than $2000 (insert real amount here) above your time and materials....but we price these courses out at no more than $15,000 (insert real amount here) per hour of seat time, because we have found that beyond that, we exceed what clients are willing to invest in the training project."

I understand the work-effort calculators. That is not exactly what I am looking for here. I am asking what the fair market price is.

Thanks,

Shane

Shane Robinson
almost 12 years ago07/09/12 at 10:37 am (UTC)

I got a bit of info. a freelancer said he has a set rate he uses and others pointed to research related to estimates of time and work product.

Hi Shane, I've been doing contract work for five years now using a pricing model based on finished screens. In short, I charge $20 per screen. Quizzes at $5 per question. I've found that sometimes I shortchange myself, and other times I make out pretty well. Each job is different, but I feel it all evens out in the end. But the pricing model makes it real easy for clients to estimate their own costs going in.

AND

http://www.slideshare.net/bchapman_utah/how-long-does-it-take-to-create-learning

Hope that helps, and yeah I would still like to know if there are companies that sell 1 hour of wbt at say, $25,000. and what that looks like, etc., but that link above gives the averages in the field.

Thanks,

Shane

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