Have you ever asked someone else to review a proposal before you shared it with a customer? If so, what type of feedback were you seeking? Are you interested in catching the typos or grammatical errors? Or, are you interested in how to present your ideas in a better light? How about pricing? Do you ask for feedback on your price? Is the price too low, too high or even fair?
A 1% increase in price has been shown to have a 10% or more impact on the bottom line. If pricing is this important (and it really is), then it makes sense to get better at it. Pricing is a skill that can be studied and improved just like leadership or project management. One way to learn it is to ask others to review your prices and provide feedback.
Putting It Into Practice
Recently, I started to teach my team some of the fundamentals of value pricing. I wish I could say it was a stroke of genius. However, they asked for it. After listening to me talk about it for months, they wanted to know more. Of course, I was thrilled to honor the request. “They are finally getting it,” I thought. There was one huge benefit I did not foresee.
Once my team members began to understand and think of pricing as a skill, they began to practice it. First, they started giving me better feedback on my prices. Second, they started putting more thought into the prices they created. They actually asked if they could price something before I did. We began to pursue excellence in pricing the way we pursue excellence in our craft.
You Can Do It Too
It is common sense to seek the advice of mentors or peers when you are developing your chops in a challenging subject like pricing. The natural tendency is to seek out someone who has more experience or at least someone who is learning it at the same time. However, if you are blessed to work with a team, you have an untapped resource.
The people you work with know your business better than anyone else. They know what it takes to do what you do. They see the blood, sweat, and tears you pour into building your business. Why not include them in the pricing function? Who besides you has a better interest in seeing your company get better at pricing?
Question: What is your gut reaction to asking someone else to review your prices? You can leave a comment using the form below.