A Profitable Pricing Model is a Gift that Keeps on Giving
All too often businesses are afraid to raise prices, particularly service businesses with long-standing customers. Business owners are nervous that customers will leave and that is a real risk.
The real issue is that over time costs typically go up and profit goes down. This is not a sustainable model!
The Sales & Pricing Challenge
All too often I see service business owners trapped in an endless cycle of running to jobs making endless quotes and chasing business. Only to find they have been undercut, or are simply missing out on jobs.
There are several issues that tied up in this approach.
- Chasing customers that have a low probability of actually becoming clients
- Spending time and energy on quotes outside the customers budget (because you don’t know their budget)
- Assuming the level of service the customer desires
- The whole sales process becomes heavily focused on cost to the customer
For some businesses, in some industries, the quote must happen upfront due to government regulation or customer dictated processes (some of what we discuss in the video is still valuable for these businesses), but for many businesses, this is something that has just evolved and become standard practice.
Having a price or cost-driven sales process is flawed…
The reality is that the vast majority of people’s buying decisions are based on value.
A value decision usually considers there 4 key areas: Cost, Speed, Quality, Service
Let’s look at them more closely:
- Cost – Price, what do I get for the price (including speed, quality, service)
- Speed – Timeliness, Effectiveness, Scheduling
- Quality – Trust, Risk, Reliability
- Service – Convenience, Responsibility (do I have to think about it), Ownership (dealing with potential issues), Availability
are spinning your wheels, endless cycle of quotes and missing out on jobs from others undercutting you.
Watch the Video to design your own Profitable Pricing Model:
In this video you will learn:
✅ How changing your sales process will lead to more sales with less effort
✅ How a simple quoting tool will qualify leads and focus you on the best sales opportunities
✅ How adding some psychology in your pricing will get you better profit margins
✅ Everything you need to know to design your own Profitable Pricing Model.
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Here to help
If you’d like to learn more about cash flow and how to manage it in your business during these COVID times.
I’m offering a free cash flow strategy session.
It’s 45 minutes.
There’s no obligation.
Feel free to jump on and book an appointment with me.