Competitive prices
What do you hear when someone claims that: “We have competitive prices”?
Piiiiiiiiiiiiiiii
That’s the ringing in your prospect’s ears right after they hear your prices. They can’t listen to anything else. They can’t hear. It’s just this ringing after they hear your price. And you keep in silence. Let it stay in their head. Once they processed it, they’ll ask questions. And that’s when you grab on the opportunity to lead. Lead them to see their future. Lead them to think and see things different.
Nothing wrong
There’s nothing wrong with copycats. Or with not being different. That is, if what you’re selling is based on high volumes and low price. Are you in that business, though?
What “competitive price” sounds like
Here’s what it sounds like when someone says “competitive prices”: that they have lower prices than the competition (so they can win). That they’re inexpensive. That they won’t be able to command a premium. That they’ll accommodate to whatever the customer asks. That they have no power in the sale. That they shy away from leading. That they can’t say “No, thank you. Not interested.” That they’re cheap. That they’ll match competitors’ prices. That they’ll win… the race to zero.
650
Here’s Billy. A specialized b2b expert in a very niched market. Yesterday, he got to sell a custom application (B) for a client as an added featured to another product (A). The costs of the materials of this added (B) application are $200. The price set, 650. Is this a good or a bad deal? . . . . . . . Your answer here. . . . . . . The price for the base instrument (A) is $ 16 000. . . . Still keep your thought of good / bad deal? Let me know what you think. PS. The main device (D) to where…
Is another good idea
The message from yesterday was asking “What’s the opposite of a good idea?”. A bunch of responses —myself included not long ago— said “A bad idea”. And it makes sense…. if we’re living in a world of dualities, win-lose, zero-sum, black and white. But that’s not the case. 🙂 Listening to this amazing conversation between Rick Rubin and Rory Sutherland, here’s what Rory said: “The opposite of a good idea is another good idea.” Because creativity (and originality) is not about beating the…
Your own prison
A prison where you’re trapped —of your own making. That’s how Blair Enns describes pricing and the feeling of stagnation you might have —how you “can’t” raise your prices just like that. [You can also listen to it here] And he’s right. Traditional pricing (and how most of us have been taught on it) has to do with how we charge, based on what it costs us, and the extra (margins/profits) we’re supposed to make. This margin of what we’re supposed to make usually gets to be based on: what the…
Show them the door
Hard truth: Customers don’t hate anything more than “being educated” (especially by you). In the sense of “Hey, you, customer. I know better. Let me educate you.” It’s so obnoxious. Don’t educate them. When you choose to educate others, it comes as condescending. And in a disparity of power dynamic. Come along and understand where they come from. Then, give them the information to make their decision. Show them the door.
No fucking way!
“No fucking way!” That’s what you want to hear from your customers. As in: “No fucking way! That’s really what we wanted all along. After trying with other options, how is it you got it SO fast?! That’s amazing.” You get to that by delighting them. And asking the right questions. And —while having a broad range of understanding— with a deep knowledge of what you’re really good at. And willing to understand. To listen to get it, not to reply. And pushing them back on their thinking. And…
Not their job
Customers aren’t supposed to “see” “find” “figure out” what’s that that you provide. It’s your job to help them see that. You’re the expert at what you do; they, on what they do (and want). Make it simple.