In this week's AMA Joe discussed different approaches to pricing and emphasized the importance of making profitability and efficiency a priority for the team. He suggested celebrating profitability through bonuses and recognition and creating clear project manifestos to align goals. He also recommended focusing on creating high-value opportunities with partners rather than just closing deals within client budgets.
Key Points
• Joe shares his experience with estimating and pricing at Happy Cog, where he used to convene department heads to estimate projects in detail, resulting in high prices and expensive meetings (0:27)
• Joe discusses different approaches to pricing, including budgeting up (letting the team figure out what something costs and building a price) and pricing down (working within the client's stated budget), and emphasizes the importance of making profitability and efficiency a priority for the team (4:03)
• Joe suggests making profitability the team's "love language" and celebrating it through bonuses and recognition, as well as redefining success for the team when operating within constraints. (6:07)
• Joe recommends creating clear project manifestos to align goals and create a rallying cry for the team (8:27)
• Joe suggests having team members create personal goals within the project to challenge themselves and define their own version of success (10:27)
• Joe believes that sales should focus on creating opportunities with partners where their value is so high that they can dictate their own price, rather than just closing deals within client budgets (11:55)
• Joe emphasizes the importance of operating within existing constraints while also working towards building more freedom in the future. (13:53)
Next Steps
• Joe recommends creating clear project manifestos with the project manager, sales, and team leads to define the manifesto of the project. (8:37)
• Joe recommends having team members create personal goals within the project to challenge themselves and find ways to improve their skills. (10:27)
• Joe suggests that the sales team should focus on creating opportunities with partners where their value in you is so high that you are naming your price and telling people what things cost. (12:16)
You Can't Lose!