Profitable Care Plan Pricing Calculator

0:00:00 Hey, it’s Kevin from Geary. co.

Thank you for opting in for my profitable care plan pricing table. I know that when you first open this, it’s going to be a little bit overwhelming, so I’m recording this video to walk you through it, show you exactly how to set it up and use it so that you can know your numbers better and design more profitable care plans. So with that said, let’s go ahead and dive in.

So first things first, when you open this up, you are not going to be able to edit this. We need to get it inside of your Airtable account in order for you to do anything with it. You only need a free account so no worries about paying anything.

But come up here and click copy base. You’re going to need to sign in to Airtable or create your account. I’ll go ahead and sign in here.

Create your free account. All right. 0:00:44

Actually what I’m going to do, I’m going to go continue with Google and I’m just I’m showing you every step from the very, very, very beginning. All right, so now it’s going to open up and it’s going to say where would you like to install this base? You can say my first workspace, that’s the default area.

It’s going to say adding base and then it’s going to open up. I would close this little sidebar over here. I would click on views and close the views sidebar, just kind of get all of the clutter out of the way.

And let’s just go ahead and understand what we’re looking at right now. What you are seeing is a segmented website care plan database of deliverables more or less. And the two primary categories that are active by default are my base plan.

So what are all the deliverables included in my base plan? And then what are all of the deliverables that are available as add-ons? So if I open this up, you’re gonna see all of these are add-ons that are available to add either to my base plan or add-on to an active plan.

0:01:48 I’m gonna show you how to do all the scoping in just a little bit. But once you are opening one of these, either the base or the add-on, you’re gonna see that everything is also categorized, okay?

So I’ve got theme and plugin, I’ve got hosting deliverables, labor deliverables. What this allows me to do is get a better understanding of how my plans are structured. And it also gives me number breakdowns when we look at the numbers in just a minute for the different categories.

0:02:13 So I have numbers for my deliverables, but I also have numbers for my categories of deliverables. And then I have numbers for the entire plan altogether.

So having it grouped like this is very very very beneficial. So I see all of the deliverables on the left-hand side categorized and then put into either base or add-on. Here’s your status column right here if I want to change a deliverable from base to add-on I can or I can use the include feature which we’ll talk about in just a minute.

Under category here’s where I can categorize everything I can add things to multiple categories if I want to. This is going to help with all the grouping, sorting, filtering, and all of that. In the next column, we see the cost for the item.

How do we get the cost by the way? Let’s take a look at maybe advanced custom fields pro. So I’m just going to go to advanced custom fields.

I’m going to click on pro and view pricing and we see three pricing options. 0:03:06 Which one do I put in here?

Well, you put in the one that you bought into or that you are planning on buying into. So for me, that is agency at $249 a year and unlimited websites. So what I did is I came back and I put in ACF Pro, I put it in my base plan, because I install that on every single website, I put it in the theme plugin category, and then I put the cost as $249.

Next I chose the payment term. This is an annual payment, so I chose annual. Not all of them will be annual, right?

So we can open this up and, oh, I’m in the wrong one. That’s why I can’t edit it. 0:03:43

Here we are. I can click the little down arrow and I can choose monthly if it’s a monthly option or LTD. Now, quick thing about LTD is all of the numbers that are being calculated, when you choose LTD, it’s actually gonna extrapolate those costs out over three years.

Three years is kind of the base number, the lifetime of an LTD. We don’t need to think beyond three years. We obviously don’t want to put unlimited.

We can’t do calculations based on unlimited values. Same thing when we get to the licenses in just a second, you’ll see the exact same thing happening. We have to come up with some sort of realistic value to put in here.

So the breakdown for an LTD is three years. By the way, most LTDs charge you based on the annual times three. Okay.

0:04:30 So I think three is a good number to use there. And the next column is the licenses column.

Well, ACF pro is unlimited, but again, I can’t do calculations based on unlimited values. So what I want to do is choose a number that kind of makes the most sense. A hundred licenses is probably a good number to use.

So for all of my LTDs or anything that’s unlimited, right, actually an LTD may not even be unlimited, but for anything that’s more or less unlimited, I use a hundred and for anything else, you put in the actual number of licenses. For example, and then there are services, this is a good example right here, Vulture or Volter, however you wanna pronounce it. 0:05:13

They give you a server at $24 a month, like a high frequency server. They don’t tell you how many sites you can or can’t put on it. You could put a hundred on it if you want to.

But our agency for each server at that spec, at that size, we only put 15 websites on that server. And so for the licenses, we put 15. This is very important because the numbers are based on the number of licenses you’re going to need for the amount of Care Plan clients you have or the target number of Care Plan clients that you’re using as your threshold or your foundation.

0:05:49 We’re gonna talk about that more in just a second. But it’s very important for you to put an accurate price.

So don’t make things up. Don’t guess off the top of your, oh, what was it I think I paid? No, go and get the actual price, put in the term correctly, put in the number of licenses that that gives you, and then you are going to have accurate numbers.

The next column that you’re going to see is the suggested price. This is per project. Okay, so for example, Rank Math Pro cost me $269 a year.

That gets me a hundred licenses. It’s really unlimited, but it gets me a hundred license, that breaks down based on my target number, my threshold of projects, two dollars per project is my, is the actually suggested price. 0:06:34

Okay. And that’s based on the cost per project and then a markup value that I get to set. And I’m going to show you how to set that in just a second, but it’s basically saying, Hey, you should basically retail this at $2 per project per month.

This is per month, okay? Then over here in the care plan quote, you’re going to see the exact same value or if we scroll down to the add-ons, you’re going to see zero. Because the care plan quote, and I go down to the bottom down here, you’re going to see that my base level care plan is saying the retail should be $98 a month.

Now I can round that up and just make it $99 a month. 0:07:14 I can even make it $129 if I want to, but I know that based on all my costs, my suggested retail value of my care plan is $98.

Now, if I wanna see what would it be if I added something else on? Well, there’s two ways I can do this. Let’s say I want the CDN to be in my base plan.

And now under the column for care plan quote, notice it’s included. So the price has jumped by $10. So if I was going to include that in my base plan, I know now I would have to bump up the price of my base plan or I’m going to be potentially not losing money but definitely losing profit, right?

My profit margin is decreasing if I don’t increase the price of my care plan. That’s one way to do it. 0:08:00

You could also say, all right, what I’m doing is I have my base over here, but I’m going to design the next tier up and in the next tier up, I want to offer the CDN. So now I can say add on include, and that’s going to create a whole nother category. Let me go ahead and toggle these down and you can see the add on include category, which is including it.

It’s called include because it’s including it in the care plan quote column right here. So you can see it’s not part of my base plan, but I’m basically crafting the next tier up, or I’m crafting a quote based on what this particular client that I’m working with actually needs. 0:08:37

So let’s go back into our add-ons and say, you know what, this client also needs a dedicated server, so let’s go to add-on include there, and they want monthly consulting. So we’re gonna add-on include that as well, and now look their plan $306 and maybe I say $299 a month. So $299 a month for that client right there.

That’s how I’m scoping a real project using this tool right here. Or if I was designing a next tier up and it wanted those things, that’s what I would price my next tier up at based on using this tool. So you guys can see exactly how that works, how easy it is.

Once you guys get this set up, really, really, really powerful stuff. 0:09:17 If numbers change, right?

The price of a plugin increases. You come in here, you throw the new price in, guess what it’s going to tell you? Here’s the new cost per project.

Here’s the new suggested retail per project. Here’s what that did to your overall plan price. It’s going to, again, you’re going to know your numbers, which is very, very critical.

And you’re going to make sure that all of your care plans are always designed for maximum profitability. Okay, next thing that we need to take a look at, hidden fields, because we need to know how to actually make this our own and set it up properly. 0:09:50

So I’m going to click on hidden fields, and I’m going to click on show all. It’s going to take just a second. It’s going to make this table a lot more complicated looking.

There’s going to be a lot more going on, but it is absolutely okay. All right, let’s take a look at the first, which is active care plans. You want to come in and edit this field.

This is a formula field, so that it always has the exact same number, right? The number you want to put here is the number of active care plans that are paying you money right now, because this is going to factor into your actual cost per project and some other areas. 0:10:24

We want an accurate number here. Sorry, my Grammarly is taking over the screen right now, but I’m just gonna put in 15 as my number and I’ll hit so not 156 let’s go back to configuration 15 save and hit confirm change and notice active care plans all Changes to 15. Okay.

Now next one is base care plan. This is like your threshold so when we’re doing our pricing we and we’re doing calculations like per project and trying to figure out what is our retail gonna be, all of this is based on a threshold, like a base level of care plans that you wanna target. Anything above your threshold is just added profit, added value, added revenue, everything is gravy, okay?

0:11:09 But if we’re underneath our threshold, like we are right now, my threshold is 20, but I only have 15 active care plans. Based on all the deliverables that I’m paying for, my profitability is actually gonna be much lower, okay?

I’ve gotta work to get to this threshold as quickly as I possibly can and move beyond it. That’s where maximum profitability lives. But at the same time, I can’t make the threshold one because that means my prices are gonna be based on having one Care Plan client.

0:11:39 That means that Care Plan client is gonna be paying for all of these things at full price, okay? We obviously don’t want that to happen.

We wanna spread the costs out over a certain number of clients. What is that number of clients? It’s the threshold, the base Care Plan target, whatever number you wanna set here, I have it set at 20 by default.

Now, if you don’t ever see yourself having 20 Care Plan clients, you’re gonna have to change this. 0:12:03 This would be like, my goal is to have 50, but my threshold for pricing is 20.

You need to set a threshold here that makes sense for you. And once you’ve done that, you can hide both of these columns. So we’re going to hide, and we’re going to hide.

The next thing that we’re going to do is we’re going to come over to markup. Notice that I can set a markup, and I’m going to open my base again, I can set a markup on every single deliverable. What this is going to control is your suggested retail price.

So it’s going to calculate the cost per project, but then it’s going to add your desired markup. So 100% is the default value, but you can actually go in, notice I changed this one to 300%, you can go in and set a markup on every single deliverable. 0:12:50

If I’m doing something like a labor charge, like for a quarterly consulting call, okay, so I broke that down, let’s say, to $40 a month for a quarterly consulting call, right? I just put in 40, I don’t want it to mark that value up that’s already the price I want to charge, so I put 0% markup on that, right? So the markup column allows you to control, based on the price that you put in over here, how much you want to make over the cost or if the cost is already what you want to charge, you can just set 0% as the markup.

Once you get all of your deliverables marked up properly, you can go ahead and hide that field. Okay, the next one, we’ve already done licenses, but there’s this amplifier column. 0:13:34

I just want to explain that to you real quick. So when you come in and you put in the number of licenses, that is the number of licenses provided by that price point right there, what we have to do is say, well, if you’re basing your pricing on a threshold of clients, like 20, remember 20 was our threshold, but this only gets you 10 licenses, well you’re going to need two of these things, two of these payment plans, in order to have 20 licenses and serve that threshold level of clients. And so what it’s going to do is it’s going to say we need to double all of these costs, right?

And it’s going to do that for you automatically. So this is really, really, really powerful. You’ll notice that this is one, right?

So it has a multiple of 20. Why 20? Because that’s our threshold.

We would need 20 of these licenses in order to serve all 20 of our threshold clients. 0:14:27 This is just helping you with your cost analysis and breakdown and things like that.

So you don’t have to touch this column. I just wanted you to know it’s there and wanted you to know what it’s doing. You can go ahead and hide that field.

Okay, the next field is monthly cost and then we have annual cost as well. This is the monthly amount that you are actually paying for these licenses or for these products over here. 0:14:53

And this just helps you get control of your budget, right? You can get an overview of what you’re actually spending for all of these tools, right? So I’m spending my sum in the theme plugin category is $270, but my base plan, I’m spending $1,175 per month.

I’m spending $14,000 annually just for the tools that are included in my base plan. Now obviously I’m making way more than that, but that’s what I’m spending. These two columns are your real costs to you, okay, and they help you keep an eye on just your overall what are you spending to service these clients.

You can go ahead and hide those. 0:15:38 They don’t have to be visible at all times.

The next is the target cost per project and the actual cost per project. So this is the per project cost of each deliverable based on your threshold. My threshold is set to 20, so if I have 20 clients this is my cost per project.

So actually I’m paying five dollars and eighty seven cents per project When my target is 440 now, what would this be? Okay, let’s go to hidden fields. Let’s go to active care plans Let’s say I have 40 active care plans.

So I’m gonna edit this field 40 hit save hit confirm change. Look what happens to my actual cost per project. Now, this is why profitability goes up and up and up as you breach the threshold that you set for your pricing.

Okay, so I’m gonna go ahead and hide both of these and we are gonna take a look again at suggested price and then our care plan quote. 0:16:46 I set these to averages, right?

So here’s your suggested price average, but I sum up the actual Care Plan Quote column. This tells me that my theme and plugin part, portion, makes up $27 of my amount. Let’s say I’m charging $99 a month.

$27 of that is for theme and plugins. $28 of that is for hosting. $43 of that is for labor.

And then my total is 98, I’m charging 99. Okay so this is just a really fantastic way and this is why I like grouping them like this that’s controlled via this. I sort it by the suggested price so it’s actually putting the higher price items first the lower priced items last.

I think that’s all you need to know to get going on this. So go ahead and make this yours, delete the deliverables that you don’t need, add in the deliverables that you actually offer, start to use this. 0:17:39

If you need any help with it, we are happy to help. I would highly recommend joining my inner circle. If you join the inner circle, you’re going to get valuable, valuable content on agency growth.

Even if you’re a freelancer, super valuable for you. All of my pricing stuff, proposal stuff, SOWs, of course a lot of trainings on SEO and UX and development, best practices. It’s just a phenomenal, phenomenal resource.

Not to mention the thousands of agency owners and freelancers who are in there, who are willing to jump in and help you with anything you need. 0:18:17 It is invaluable.

It is a very, very affordable community to join. There will be a link down below to that. Check it out, check it out.

It is a big, big, big help. And I can definitely help you there if you need help with this stuff, okay? I hope you find this valuable.

I hope you put it to use. And I hope you use it to make more money. I’ll be back very soon with more trainings.

0:18:41 Make sure you follow me on YouTube at GearyCo. Peace.