Dan Morris runs an accounting company and loves to ask, “What if?” He thinks of himself as the rudder to help his customers think strategically.
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What is the most important thing you can share about pricing?
- Always remember that whatever the price, the price to the customer has to be less than the value they receive.
- The price received by the producer has to be more than the psychological and physical cost to the producer.
- The basics for a good value conversation include three questions:
- Why me?
- Why now?
- Why in this manner?
Why are professionals fearful about having a value conversation?
- They are brow-beat by customers into believing they are a price-taker, not a price-maker.
- They are unwilling to walk away from business.
- Observe good pricers, for example airlines.
- Review pricing with your spouse or a professional peer.
If a customer is reluctant to discuss value, how do you persuade them?
- Try out pricing points to see how the customer reacts.
- Talk about outcomes that they would want to see.
- If you do not ask for the price, you will not receive it.
- Premature pricing is a disease. Slow down.
- What is VeraSage? A think-tank with a mission to “bury the billable hour” and create better lives for professional knowledge workers.
- Speak in a language your customer will understand.
- Hold employees accountable for the results not how the work gets done.
About Dan Morris
- Founder of VeraSage
- Founder of Morris + D'Angelo
- Lives in Oregon, works in Silicon Valley
- LinkedIn: Daniel Morris
- Twitter: @morriscpa
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