Gearbox Solutions is switching to value pricing. In this episode, owner Marty Thomasson discusses his experience during the transition and the impact on the business.
What is the most important thing you can share about pricing?
- Moving to value pricing requires a full commitment.
- It requires changing the way you think, including new soft skills.
- Changing your business to value pricing is a philosophical change.
- Value pricing is a technique to create a win-win for the customer and the business.
How has your conversation with your customer changed?
- Talking about value more quickly, not just talking about features.
- We want the customer to know that we are going to guide, consult, identify the problems and the why behind them.
- Discussing value earlier in the conversation, the customer sees a different approach than our competitors.
- Once we learned we were not building a commodity, it led to value pricing.
- Your interests become the customer's interests.
- Focusing on hours ignores the results. It focuses on minimizing or maximizing the time spent.
- You can make more money through value pricing, but it is not gouging the customer.
- Knowing you have made a dramatic difference in someone's life is what drives Marty.
Why are you an entrepreneur?
- Marty enjoys seeing opportunities and going after them.
- He likes to constantly learn and value pricing is a new area of learning.
- The value pricing process allows Marty to take one step back and discuss the value the customer will receive.
- That conversation increases his value to the customer.