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.
“You can signal inferiority and repel, or you can indicate quality and attract your ideal customer. Yes, price persuades.” An illustration from a classic book on influence and persuasion.
Thanks to Bill Lampton, Ph.D., the “Biz Communication Guy,” for having me as a guest on his “Biz Communication Show.” We discussed pricing topics like how to deal with the “I can’t afford you” objection, the need to have a value conversation before pricing your service, and how professional service providers offer intangible value which goes well beyond the service itself.
Some professional baseball players see enough value in their barbers to fly them around the country (sometimes internationally) to get a haircut. Why? Because these barbers meet some intangible value needs these players have. It’s a reminder that all our customers have intangible needs we meet which go beyond the features of our product or service.
Your prices send signals to customers…sometimes messages you didn’t intend. A master woodworker’s story illustrates the point.
You’ve had the ribbon cutting and you’ve got customers. Maybe you’ve even turned a profit. You’re still not officially in business until you’ve reached these milestones.
Apple’s rise to one trillion in market value–a first in U.S. business history–was achieved because of a pricing strategy which overcame missed forecasts. There’s a lesson (and opportunity) here for all of us.
Connecting people is considerate and admirable. There’s a right way and a wrong way to do it, however.
© 2018 Ray Business Advisors, LLC.