#NiksTips on Pricing

#NiksTips on Pricing Bonus to Episode #33 The who, what, where, when, and how of Pricing Scott: In the sales process who are you selling to? Niks: we need to be clear on who is your audience when pricing… Scott: Are we pricing the services or are we pricing the customer? Niks: we need to know what services we’re providing, we need to have a scope/baseline of the services provided and prices associated with services so we’re not negotiating price with the client but negotiating service offerings Scott: if you’re pricing products to be profitable then you’re not pricing the client, be firm on your price and make sure your prices are profitable. Niks: value pricing can be very subjective…if we're really busy and our pipelines really hot, our prices go up… Scott: should we do free trials or they should give them a free month so they can figure out the best way to price it? Niks: clients don't usually balk at the onboarding fee because they know it's a one-time thing. Scott: I think that you can agree that we are not pricing commodities…but, customers come to us thinking it's a product that they can get anywhere… do we have to change their mindset on the products we’re selling? Niks: I think there are some firms that are commodity and they priced that way and that's their business model. They just want to acquire as many customers as possible at a low price, but they also don't do very much. Scott: the best prospects that come to us are at that inflection point where they're in pain, when you work at a hospital and somebody is in pain, that's your patient right there… Niks: the hardest part is when you get a new business owner that doesn't know what they don't know yet, and you're trying to describe the value of what we do. Scott: how can you set yourself apart to make that price seem more palatable? The Momentum Sales Process: we spend an hour with the client just asking them all the questions. And then we asked for financial data, either access to their QuickBooks or Xero and then after that, we have another conversation with them, or we go through the scope, which is basically our diagnosis of what we think that they need. Based on everything we talked about. And then we can talk about things in the financials, which to your point about saving them money or pointing out things that they could do better. Scott: I think that they made up their mind when they found your firm more or less. Niks: I'm going to disagree with you on that…