Pricing and Urgency
March 3, 2020
I saw this truck over the weekend, and it got me thinking about pricing and urgency.
This guy has decided that there is no compelling need to fix his transmission. His urgency factor is not just zero; it seems to be less than zero. He’d rather drive over to the hardware story—in second gear—and purchase stick-on letters to alert drivers who come up behind him. He's clearly not ready or willing to pay for a new transmission.
The degree of urgency a client possesses for your solution to their problem is a client value. Your pricing should reflect that value, whatever it is.
If you’re a bookkeeper, for example, there are some clients who want their financials faster than others. There are some who want monthly numbers; some are content with quarterly. Some clients are satisfied to ride around in second gear, using your services to get their financials done yearly in time for tax return preparation.
If you’re a business or leadership coach, you’ll have clients who call you up, exasperated with their situation, and they want a deep dive into your solution as fast as they can get it. There are also clients who, maybe for budget reasons, are ok with incrementally, over time, enjoying the results you’ll help them achieve. Then there are clients who just want to read your book, come to a workshop, or absorb whatever you post on your blog or social media. They’re content to ride around in second gear, and that’s ok, by the way. Some of those folks will decide, at some point, that they want to move their business faster, and they will call you to get that new transmission.
Whatever your services discipline, your value conversation with a client should always include questions which help you gauge urgency. The pricing options you offer, in turn, should reflect the speed of your solutions.
©Ray Business Advisors, LLC and John Ray
About me: I’m enthusiastic about how changes in pricing strategy can significantly change profitability for a business and enhance life choices for business owners. I live this passion through Ray Business Advisors, my outside CFO and business advisory practice, in which my pricing is exclusively value-based, not hourly. I work with business owners on how they can change their pricing not just to increase their profits, but better serve the wants of their customers. Click here to learn more or call me at 404-287-2627.