Find My Catalyst Podcast Pricing - How Should We Approach Pricing? - 119
Another common set of questions we receive from those who listen to our podcast, as well as potential clients and current clients, revolve around pricing.
How should we price our product or service? Also asked as, How should we approach price? These are two of the more common questions around pricing. This week on the Catalyst Sale podcast we discuss pricing, and wrap up the discussion with a brief conversation on addressing the price objection.
Questions Addressed- What is the difference between value and price?
- How can we make the price easy to understand?
- Market Response - using market data to iterate.
- How do you handle the price objection?
- Your pricing should be simple, but that doesn't mean it is easy to do.
- Your pricing should be easy to understand
- Should be easy to work with
- When I buy coffee at Starbucks, I know what it will cost. The price is on the board behind the barista.
- Is it (your product or service) worth the trade?
- B2B - the decision is most often on behalf of others
- Value & Price - Ask these questions when thinking about pricing.
- What is the value the customer will get?
- How can I make it easy to understand?
- What are the variables that influence or impact price?
- Value is a perception
- Price is what you pay
- Value may diminish over time and volume.
- Ask these questions on behalf of your customer
- What do they find value in?
- Why is this valuable?
- What are the costs of not solving the problem?
- Your perceived value of the solution may be different than you’re the perceived value your customers have.
- You can make it easier to understand your pricing approach by setting clear expectations. These expectations can be set around costs, impact, volume, etc.
- Whiteboard out the variables, or use a tool like mindnode to organize thoughts around the variables.
- Gather data from the market, do this by asking questions. The information will help you iterate and evolve your approach to pricing.
- Leverage question to understand the perspective of the customer. Don't simply respond to the pricing objection with a discount, or an answer.
- Consider that the customer may be measured based on some factor that you have not uncovered.
- Be empathetic, put yourself in the shoes of your customer.
- Be careful about the assumptions that the customer may make based on their understanding of the pricing.
- Don't assume.
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Catalyst Sale
In every business, in every opportunity, there is someone who can help you navigate the internal challenges and close the deal. There is a Catalyst. We integrate process (Catalyst Sale Process), technology and people, with the purpose of accelerating revenue. Our thoughtful approach minimizes false starts that are common in emerging markets and high-growth environments. We continue to evolve our practice based on customer needs and emerging technology. We care about a thinking process that enables results versus a process that tells people what to do.