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You've been taught pricing... backwards
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Friend-of-the-list Brandon Hughes started an interesting discussion on price and rates. "If you find the price, you would give the extra value." This makes sense on the way we've been taught about pricing and prices. We need to find the right price. But there's no right or wrong price. Just a price. We've been taught that first you find how much it costs you, then you find the right price, and then you see the value that can be added to your customer. That's backwards. You don't find the price to then give the value. 1- You find the value of what your customer is after, then 2- you set the price (an acceptable value/amount for the customer as a trade-off in exchange for what they desire), and then 3- you determine the cost of what you could do to make your price workable for you. We've been taught the wrong way. But you can change that. :) |
Rod Aparicio
Get one tip, question, or belief-challenge that just might change the way you market, to help your customers buy. A *daily* email for b2b founders on improving your business —without the bullshit.
That's Blair Enns' proclamation in his manifesto. That not everyone will do business with you. And that's ok. Same applies to your current customers. When shifting your pricing and pricing policies, current customers won't like it. They'll fight you over small things —that are totally fine if it comes from somebody else (at even higher prices). 🤷♂️ And that's ok. It's a sign to start looking into the future and find better fits for your business. It's your decision to keep them in your...
Friend-of-the-list Brandon Hughes started an interesting discussion on price and rates, and how that shows your expertise. Excerpts of our convo (w/permission to share). If I have rates, I'm not an expert or I'm leaving money on the table. If I find the price, I could probably do the job in my sleep, giving the customer extra value. —Desmond If you have rates, you could very well be an expert. Yet, you would project less confidence in your work, as the customer is the one who bears all risk....
That's one of the things that state you care about your customer, because price is all about them (and their certainty). The difference between a rate and a price. Rate: a variable that needs to be calculated with other(s) to have a final figure. Price: a variable that is final. Dissecting yesterday's reply. "We don't work with predefined rate cards, as all you could get is an estimate based on assumed calculations of the rate, times X, Y, or Z. And you know estimates are just that, they...