Pricing legend Ron Baker joined me again (for a record-setting fourth appearance!) on Ditching Hourly to talk about the nuances of the subscription model for service business.
Talking Points
Subscription pricing is becoming increasingly prevalent, with the subscription economy projected to reach $1.5 trillion by 2025.
Pricing tiers can be implemented based on the range of services offered, providing flexibility for customers.
Providing outcomes and guiding transformations creates a better customer experience.
Non-rival assets, such as knowledge and ideas, can be leveraged through subscriptions, allowing professionals to serve more clients simultaneously.
Wasting customers' time is a major downfall in many professional firms, and subscriptions can help mitigate this by fostering consistent and meaningful client interactions.
Subscription is a straightforward pricing model that offers a set price for a defined range of services or products.
There is a potential shift towards performance-based payment models, where sellers are paid based on results rather than promises.
Quotable Quotes
“The more services we pile on brick by brick, we add more value.”
“If you're going to the market with an uncommon offering, you're commanding uncommon prices.”
“You are building lifetime annuities that are worth more than it costs you to acquire them.”
“A business model explains where revenue will be earned when services are provided free of charge.”
“I do think it's a way station. I think we'll move to a world where we're actually paid for performance and not promises.”
“We're too busy selling services brick by brick by brick by brick. And that's not where our value is.”
Ron’s Links
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Do you have questions about how to improve your business?
Things like:
- Value pricing your work instead of billing for your time?
- Positioning yourself as the go-to person in your space?
- Productizing your services so you never have to have another awkward sales call or spend hours writing another custom proposal?
Book a one-on-one coaching call with me and get answers to these questions and others in the time it takes to get ready for work in the morning.
Best of all, you're covered by my 100% satisfaction guarantee. If at the end of the call, you don't feel like it was worth it, just say the word, and I'll refund your purchase in full.
To book your one-on-one coaching call, go to:
https://jonathanstark.com/call
I hope to see you there!
