What I’m Worth August 19, 2019 “I should get paid what I’m worth.” I hear this sentiment, and variations on it, from professional services providers whom I speak to about their pricing. “What I’m worth” is dangerous language for a B2B services provider. “What I’m worth,” in isolation, can easily get turned into “what I need” or “what I deserve.” At an extreme, “what I’m worth” can justify taking advantage of people. What you need or think you deserve, is…
How Not to Defend Your Rate Increase: The Law Firm Edition August 2, 2019 According to the latest Altman Weil survey of law firms, rate increases were the norm last year. Of those firms who responded, 61% report rate increases which are more aggressive than in previous years. A new question was added to this year’s survey: “If challenged by a client, how would you justify your firm’s most recent rate increases?” The most frequent response was “our costs are…
The Price of Air in New York City July 25, 2019 What’s the price of air in New York City? If you’re walking down the street, the price is zero, just like it is in Atlanta, Houston, or Topeka. If you’re living in a New York City high-rise, the price of air is $11 million. The New York Times recently reported on a group of loft owners who discovered a developer planned a tower for the property right next door.…
The Pitches Which Apply to Everyone Apply to No One July 23, 2019 Recently I attended a gathering of business owners in which everyone went around the room, introducing themselves and their business. A travel agency owner introduced himself and casually added, “anyone who needs to travel is a good fit for me.” I remember hearing a lady at a networking event pitching her line of skin care products. At the end of her pitch, she said “a good client…
When Clients Brag April 23, 2019 I was discussing engagement options with a potential client not long ago. We got to the point where I reviewed my pricing for those different options. “Hmmm,” she said as she looked up. “I’m on a non-profit board,” she continued, “and recently we were reviewing proposals from several consultants,” she said. “We ended up hiring the most expensive consultant, because we thought they gave us the best shot at a successful outcome.” “After we…
Priceless April 16, 2019 The world stood in shock yesterday watching Notre-Dame de Paris overcome by flames. A building over eight centuries old on the verge of destruction. French President Emmanuel Macron spoke for his nation: “Notre Dame of Paris in flames. Emotion for a whole nation . . . Like all our countrymen, I’m sad tonight to see this part of us burn.” This building and the material objects inside are things which have no meaning in and of…
Ray Charles and the Sparse Applause of Raving Fans April 9, 2019 Near the end of his career, Ray Charles came to be appreciated for the great artist he was. By the time he died in 2004, Charles had received the Grammy Lifetime Achievement Award, a National Medal of Arts, Kennedy Center Honors, and was one of the first inductees into the Rock and Roll Hall of Fame. Before a lot of those awards, however, Ray Charles experienced a time…
Netflix’s Luxury Pricing Position April 1, 2019 How do you know when your price is too low? You know that’s the case when raise your price, and you hear very little complaint and lose almost no customers. That’s been the reaction to Netflix‘s price increase announced a few weeks ago. This article proposes a usage pricing model which would further differentiate Netflix’s customer base and generate $1 billion in additional cash flow. While Netflix might possibly be building to such…
An Impatient Garage Door Repairman March 26, 2019 One day I woke up, sleepily took care of our morning potty time for our dogs. As I brought in the last one and lowered the garage door, disaster struck. As the door lowered, it crinkled. My wife couldn’t get out of the garage; fortunately, I was parked outside and could take her to the school where she teaches. On the drive over, she asked who I was going to call about…
Guest Appearance on the “Marketing Made Great” Podcast February 14, 2019 It was a great pleasure appearing on the “Marketing Made Great” podcast, hosted by Mark Treager and sponsored by Cornerstone Media Group. We talked about the signals your prices send, homework you need to do to create profit, why it’s so hard to be the cheapest, how to know if your prices are too low, and much more. To listen, follow this link. While you’re there, check out Mark’s…
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