Maybe your pricing IS the problem
If you think of it as a response to the market. If you build it up as your costs + profits. If it’s set up being compared to the competitors. If it’s taken as what big cos do. If you want to build it from low entry points to then raise it. If you’ll raise it little by little. If you believe hours define it. If you believe effort defines it. If you believe it’s “what’s you’re worth”. If Rate is confused with Price. If you ask the question “what would you pay” instead of “would you pay ___”. If…
Your price is not the problem
A common thread that comes when talking on pricing ANY offering comes as: “I believe my prices are too high. I think i’ll lower them.” When digging for the reasons, one recurrent is: “My potential clients have told me so.” If that’s the gist of the problem you’re facing, here’s a question for you: If you cut your prices to 50%, would it automatically double your clients, customers, guests? Would you have people lining up because you’ll be over capacitiy? Just think of that. 🙂
(One of) The big lie. A function of your costs.
Setting up your price as a function of your costs is one of the big lies we’ve been taught into. From hospitality…Calculate labour (staff) + supplies and then add what “the best practice” on profit margin in the industry is. Now you have your price. To B2B…Calculate what it costs you, add a margin and you’re good to go. You have a price. To consulting…Estimate how much you’d like to make in a year based on your costs, divide it by 2000 hours (aprox what you work in a year) and you have…
Right people. Right Content. Right Time.
“Getting the right people to the right content at the right time” Bill Shander That is the mantra for the 4×4 Model for Knowledge Content by Bill Shander. It’s not about your content reaching the right people. It’s bringing them to your content. And it all happens from low to high commitments they (are asked to) do. It puts people first. Finds the right ones to get the content to. Content second. Light or heavy to consume? Time third. Is it the right context for them to consume it and get it?…
Value, then Price
If you know what your customer values —what’s REALLY important for them, you have a head start. A head start to put a price that is less that what they gain —so it’s a no-brainer. A head-start to focus on what they really want —so it’s a no-brainer. A head start to ditch whatever would be a nice-to-have and look for the big wins —so it’s a no-brainer. A head start to seeing what to say No to way ahead on the road —so it’s a no-brainer. A head start to shift the conversation from hours, time,…
That dark place of doubting yourself
Writing a proposal and sending it with 3 options. Commenting on it with friends and getting back “But this is not how things usually work here. You need to give a (daily/hourly) rate.” It makes you think if you approached it right. If the price was too high. If you need to show more value. If you need to prove it. if you need to keep giving freebies (and free advice). If the prospect will walk away because you’re too expensive. If —maybe— you thought too high of yourself and shot too high….
Those who
There is this podcast episode by Rochelle Moulton and Jonathan Stark that revolves around “Why ‘Those Who Can’t Do Teach’ is BS”. At a point, Jonathan pivots the question to “those who can’t teach do”… which brings me to something often times overviewed: Those who know how to, learn. Because here’s the thing Doing and teaching can even become mechanical and intuitive. But to know how to —that stage where you go from hands work to brains work— you need to learn. It’s an action you do, not…
Another day in paradise
3 chords. No effort. Just a warm up. A world, epic riff that makes it stand out and recognizable all over the world (and time). That’s how this song was made. However, Dominic Miller’s first intention was to make it about the song and himself until he heard: – “That’s the riff!” – “Wait. Hang on a minute, mate. I’m gonna do something really epic that’s gonna show not only great your song is, but how great i am” (I’m just warming up!) When he understood it was not about him or about how epic…
Costs, then Price
A couple of replies to yesterday email focused on 2 things re: pricing. Decision-making and Costs. Decision-making Long time reader and AI specialist Genevieve Hayes pointed out (shared with permission): “All these pricing formulae are just examples of decision rules. And as we’ve discussed on many occasions, they are there to guide you, not to be blindly followed.”. She’s absolutely right. The thing is though, that almost everything taught is taken from the view that costs determine price….
New into the world
Sometimes businesses are like newborns. As you —in your consulting practice— get to help them, their transition into seeing things is transformative for them. They have their eyes closed (to a different perspective). Then they open them, but can’t make sense of things (yet). First they see shades. Then, high contrast (white and black). Then, forms (new to them). Then, familiar forms (to them). Then, shapes (and faces). They start recognizing the world around. They get to see things. Your job…