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.
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.