Sharing your pricing with someone else falls into the category of risk and fear. One reason it is working well in my company is because watching me do it has sparked a natural curiosity for my team members. However, you do not have to wait until your team asks you about pricing. It seems mysterious. Whenever, you shine light on something mysterious, it creates curiosity in those who use their knowledge and experience to improve the lives of their customers.
Asking for Feedback
Recently I had to price a web development project for a customer. I came up with the first draft of options and prices. (BTW, have you ever thought of your first price as a draft?) Then I created a model for the prices. Then I asked a team member to review the prices. I was concerned my pricing was too high. After discussion, she helped me realize my prices were probably too low. I was letting fear of the customer's reaction to the price cloud my judgment. When the proposal was presented, the customer said the price was fair.
The benefit of teaching my team how I price is that we have created a pricing council — a group who can review our prices from a similar perspective, ask tough questions, and ensure we are setting a price to match the value. This teamwork only happens when a business treats pricing as a core competency like its craft (accounting, consulting, design, etc.). It is a risk because you have to open yourself up and trust the team's judgment.
It also works in the reverse. The same week one of my team members wrote a change request for a customer. He created a model for the prices. He then reviewed it with another team member. Finally, it was my turn to review it. Did I revise the prices? Yes. However, I took the time to explain to the team member what my changes were and why. He learned something to help him price better next time. He felt comfortable to do so because I had already set the example.
Question: What is the level of pricing knowledge of your team? You can leave a comment using the form below.