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© Business Success Center, Austin, TX 2011
With Jan Triplett, Ph.D. CEO, Business Success Center
© 2011 Austin, TX
Best Practices in Pricing
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© Business Success Center, Austin, TX 2011
Your Passion, BSC’s Expertise
• Our Mission: to help you find your way• Providing guided growth to achieve success since 1982• Sales, marketing, & financial management focus • Clients from A-Z industries, high tech to no tech, products & services
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© Business Success Center, Austin, TX 2011
Your Company Focus?
B to B?B to C?
Better to be P to P
.)(. (Belly Button to Belly Button)
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© Business Success Center, Austin, TX 2011
Who’s your customer now?Who’s your prospect now?
Platinum Gold Silver
Bronze Lead Concrete/Radio Active Waste
Platinum & Gold — create stabilitySilver — has potentialBronze — uncertainLead — a time wasterConcrete — a business killer & never satisfiedRadio Active Waste a long-lasting reputation & confidence destroyer
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Platinum customers are…
• VisionariesSee problem as you doSee value of your solution
• AdventurousConfident in youTrust you
• DecisiveHassle-free or less hassle
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What’s Your Desired Pricing Goal?
Attract paying customers who are:• Most Lucrative• Easiest Sale
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© Business Success Center, Austin, TX 2011
A “Fair” Price
Customers want: To get good value, pay a fair price.
Sellers want: To give good value, get a fair price.
Dilemma: What’s fair to one; may not be fair to the other.
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© Business Success Center, Austin, TX 2011
What Do You Want Customers To Do?
Examples:• Try it• Stock up• Repeat buy• What else?
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© Business Success Center, Austin, TX 2011
Pricing Considerations
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Pricing is an emotional issue for you, your employees, & customers.
Buyer reaction to price is unpredictable.
Shoot from the hip & you’ll end up shot in the foot or worse.
One price strategy usually doesn’t fit all products/services.
Controlling costs can make a business more profitable than raising the price.
Stay alert: pricing laws & regulations change.
© Business Success Center, Austin, TX 2011
What You Need to Know about Pricing
Pricing should be… Pricing will…
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An attention getter and qualifier.
A way to position your company.
Perceived by your Platinum-preferred client as a benefit not just a feature.
Make you rich or at least comfortable or just sick and tired.
Affect the success of all areas of the business.
Require that you don’t just set it & forget it.
© Business Success Center, Austin, TX 2011
Your Price is NOT Right for EveryoneIt’s all about:1. Getting the right customer2. Keeping the right customer3. Considering their perceived risk4. Knowing your true total costs5. Identifying the top value you bring6. Accounting for long & short term goals
THEN Pricing Right & legally!
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© Business Success Center, Austin, TX 2011
The Big Debate
CostVsValue
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© Business Success Center, Austin, TX 2011
Best Practices in Pricing
• Price what you’re worth.• Use KISS pricing system.• Account for profit, contingency & hassle-factor.• Price for positioning.• Monitor & adjust.
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© Business Success Center, Austin, TX 2011
Worst Practices in Pricing
• Undervaluing your benefits.• Under-estimating costs.• Not considering your Platinum customer’s “Flinch Point”.• Blindly following competition.• Inconsistent pricing.• Violating laws - DTPA
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© Business Success Center, Austin, TX 2011
Good & Bad Pricing Examples
1.Charging $15 per hr for professional services2. Providing a $400 discount on a product3. Charging $500 for one research report4. Charging low price to get started5.Your examples?
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Here’s to your
success!Jan Triplett
triplett@bscusa.comTwitter@JanTriple
ttFacebook@JanTri
plett
Business Success Center
Sales & Financial Management Services
January 15, 2011
© Business Success Center, Austin, TX 2011