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
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.
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.
Should you be pursuing as much as you can get from your clients or should you be driven by the idea of a “fair” price? Many economists would say that any price paid is by definition a fair price otherwise the buyer wouldn’t pay it. They’re wrong.
We’ve gone from an era where creative firms never published their pricing on their website to one where, while it’s not common, there’s a bit of a trend toward it among certain types of firms.
There are right and wrong reasons to disclose your pricing on your website and right and wrong methods of doing so.
In this 2Bobs podcast, Blair addresses the internal struggle for margin that happens in many firms between delivery teams and business development teams due to their lack of distinction between cost and price.
The battle to increase gross profit margin isn’t that complicated. By simply charging more you generate a higher top line with no change to delivery costs, thus increasing the bottom line. Battle won, right?
The subjectivity of value works both ways. Value is highly personal and subjective but it is so to all parties on both sides of the buy-sell divide. Just as two different clients considering the same offering from the same firm will assign different value to that offering, so too will two different salespeople trying to sell that offering.
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.
In the Win Without Pitching Workshop you heard me say that I think the ability to navigate the value conversation is the most valuable skill in all of business. Then we gave you the framework, a few hours of practice and we sent you on your way. Don’t worry if you haven’t mastered this important
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