Do you know the one key to being a better pricer? It’s the ability to have a good conversation. Pricing success really does come down to your ability to encourage and navigate respectful dialogue.
Win Without Pitching®: Thinking
At the highest level of pricing centralization and, I believe, value-and-profit creation, here’s how account leaders and a value council should work together
The goal of value-based pricing is not to charge more—that’s merely a beneficial consequence. The goal of value-based pricing is to create an organization that is intently focused on creating extraordinary customer value.
It’s early January. My phone rings. It’s Sue, a former client I spoke with two weeks earlier. She had called to share she was leading a new firm and they were growing like mad. She needed our help again. I had always liked Sue. We did really good work for her and she’s a straight
I’m pretty sure I can show you the levels of financial success you’ll move through in your career. I can’t predict how far you will go, but by reading the descriptions of the levels you’ll be able to see where you are on the journey and what lays ahead.
The value conversation is where value pricing theory goes to die. The difficulty in mastering this conversation is what causes most people to give up on value-based pricing completely and revert back to selling time and materials. It needn’t be so difficult, though.
It takes a lot of work in fact to generate a steady stream of good referrals and it’s no surprise that very few firms ever get to this place where the business is sustained and growing entirely by doing great work for good clients and systematically asking for and following up on referrals. It is however the highest form of “marketing” that we should all aspire to.
When selling time you tend to strive to a consistent level of profitability across every project. When selling value, your profit measurement focus should broaden out to make sure the entire relationship is profitable, accepting that some projects will be wildly profitable and others less so, even allowing some smaller projects to be unprofitable.
Money, money, money. Most of us, I believe, have poor relationships with money. Another belief of mine is that some of us have warped or skewed views on the topic that we think are universally shared by others when they are not.
In this article I’ve tried to sift through these ideas and hold up the truths that I think are universal across time and cultures, and in so curating them maybe I’ll be able to help you improve your relationship with money and earn more.
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