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Price Between Cost And Value
- Value pricing sets a price based on the buyer's perceived value rather than the seller's cost.
- The ideal price sits between the seller's cost floor and the buyer's value ceiling.
Sweater Example Shows Value Gap
- Jonathan uses his wife's hand-knit sweater to illustrate cost versus buyer value.
- The seller's internal cost and a buyer's willingness to pay determine a profitable price range.
Ask Before You Price
- For consultative services, have a sales conversation to surface the buyer's perceived value before pricing.
- Only price if the buyer's perceived value exceeds your cost so the engagement remains profitable.