Business owners, take comfort from Warren Buffett, arguably the world’s greatest investor: you don’t have to be the greatest manager to have a great business. There’s one thing you have to get right, Buffett says: pricing.
CEO Satya Nadella has turned Microsoft around with a simple change in perspective. His example is great one for all of us, and essential if you want to achieve better pricing for your product or service.
Customers don’t buy our products or services, per se. It’s much deeper than that, as management consultant Peter Drucker explained. Some wisdom from a legend; ignore it and you’ll be setting the wrong price.
Customers do not automatically gravitate to the lowest price offering; their decisions are based on emotions, such as identity and nostalgia, which have nothing to do with price. Cincinnati chili as an illustration of this principle.
Offshoring and video games decimated the U.S. marble industry and left only one domestic manufacturing standing: Marble King in Paden City, WV. How did they do it? They set out to become the best marble manufacturer in the world.
If you build your brand based on a discounted price, trouble will follow. That’s the lesson of Subway.
Should you post your prices on your website? How do you communicate the value you provide to attract clients who don’t want the cheapest provider, but want the best and are willing to pay for it? Here’s the case of a property inspector who deftly handles these questions.
How videographer Trenton Carson responds to the “what are your rates?” question from clients . . . and how he invites them into a value conversation.
You meet a prospect at a networking event, or maybe they find you online. The first question they ask is “what are your rates?” How should you respond? Here’s an answer for that question.
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