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…
As a buyer
In response to the 650 question on if Billy’s deal was good or bad, friend of the list and great illustrator and designer Rad came back with one question that was HUGE (edited slightly for conciseness, shared with permission). “The customer got a heck of a deal from Billy because they’re sure to make a killing with the enhancements because it’s already 16,000 to get the instrument but only less than 10% to get the upgrade.Billy could have charged more. (I think)What am i missing?” Here’s a…
Marketing or branding
Marketing is understanding business through the market lens. Branding is understanding business through the customers lens. They both work together. One is not “better”, “more important” (aka strategic), than the other.
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?
Competitive prices
What do you hear when someone claims that: “We have competitive prices”?
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.
“You need to be competitive”
That’s what most people say: “You need to be competitive” No. You need to be competent. First, competent.
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.
Your value is not important
Value pricing. There’s a big misconception with it. It has nothing to do with your value —or how you perceive your own value, or how your customers have to understand what you sell to show them how you justify your prices. Or how much effort you put into it. Or how cool you are. Or how great your work is. None of it. Take yourself out of the picture. Value pricing has to do with what your customer values —what they believe is important. Value pricing takes this factor and prices in alignment…
