Incompetence
There are 2 types of incompetents. Type I Here you find the ones who try new things, experiment, fail consistently, and try to bring new perspectives into new scenarios. They’re incompetent because they’re not trying to achieve efficiencies. They haven’t had the experience in doing the thing yet. They’re learners. Seth Godin writes a bit about it here. Type N Here you find the other type. Where they stick to the old ways of “We’ve always done it like this”. Where they don’t look for…
After the silence
After the awkward silence came: “Why are you saying that? Our product goes for 42K per year.” Here’s the thing While this price might be high, it depends on the context. The firm is specialized in IT security (aka protecting high-profile companies from being hacked). Going deeper into the conversation, a company being hacked loses —besides reputation— a few millions. In no time. When set up on this specific context, putting 40K a year is pocket change compared to what stays secured. What…
What did you just say to me?
Here’s a conversation that happened last week with a founder. Them.- “Our closing ratio is over 50%. But some clients consume way too much of our resources, and a very few are just perfect (with the time-resource-profit proportion).I don’t think we have identified who our ideal clients are yet.” Question to you: While this closing rate is awesome, what if you pushed back? Here’s what came next: Me.- “Well, your product might be REALLY good… or you might be too cheap. :v” Founder’s reaction…
Don’t start from the bottom
Sometimes you need to start from the bottom up. Pricing is not when. When presenting 3 options for your customers to choose from, the usual way the proposal building gets approach is: Listen to the budget. Think of what could be built based on the budget and make a profit. Think of what the next thing could be built and make a higher profit. And build an even better one that would blow their minds (and be used as the high anchor). The thing is, it takes more effort on doing it so. It requires…
The power of options. And why to give 3.
Pre-S. Influenza got me good this past week. Not fun having high fever sustained through days and nights. So, PSA, get vaxxed if you can. 🙂 ———— Giving your customers 3 options actually helps them. It gives your customers agency. That they are in charge —which they are— of what’s next. It gives them a better view of your expertise and how you’re thinking for them and with them. It makes the comparison easier between you and your competitors: it goes from “Why should i choose you?” to…
Nobody will pay this
“It’s too expensive. Nobody will buy this thing. The price would be too high.” — Will . salesperson The price? $ 100 K. Here’s the fun part, though: Without context it sure feels like a lot of money. It’s 100 K, right? However, the customer is currently using an alternative for $ 200 K.PER YEAR. This 100 K? What it would be for the customer to pay. For 5 years. To them (the customer), it’s comparing 1 million to spend in 5 years vs 100 K in 5 years. For them, it’s 90% in cost savings. For the…
You got approval and now… Procurement
You got through the hard part of the sale, you got the approval and now comes Procurement saying: “We’re about to place the order. Do we get a discount?” There are 3 possible ways you could go on it. Say no and call it out. “We got approval and agreement for the price. I’m curious, what’s the reason for this to happen?” “Sure. I could do a 1-figure discount for early-payment, etc.” “No can do for this one. However, with the following projects we could take this into consideration.” It’s…
Not all will follow. And that’s ok.
That’s Blair Enns’ proclamation in his manifesto. That not everyone will do business with you. And that’s ok. Same applies to your current customers. When shifting your pricing and pricing policies, current customers won’t like it. They’ll fight you over small things —that are totally fine if it comes from somebody else (at even higher prices). 🤷♂️ And that’s ok. It’s a sign to start looking into the future and find better fits for your business. It’s your decision to keep them in your…
You’ve been taught pricing… backwards
Friend-of-the-list Brandon Hughes started an interesting discussion on price and rates. “If you find the price, you would give the extra value.” This makes sense on the way we’ve been taught about pricing and prices. We need to find the right price. But there’s no right or wrong price. Just a price. We’ve been taught that first you find how much it costs you, then you find the right price, and then you see the value that can be added to your customer. That’s backwards. You don’t find the…
Wordplay on prices and rates
Friend-of-the-list Brandon Hughes started an interesting discussion on price and rates, and how that shows your expertise. Excerpts of our convo (w/permission to share). If I have rates, I’m not an expert or I’m leaving money on the table. If I find the price, I could probably do the job in my sleep, giving the customer extra value. —Desmond If you have rates, you could very well be an expert. Yet, you would project less confidence in your work, as the customer is the one who bears all risk….
