In this episode I discuss some topics that customers and listeners have been asking me about recently. To implement value based pricing it is imperative that you have the value conversation. It is impossible to have a value based pricing strategy without first understanding what is of value to your customer and then communicate the value of your services.
To have the value conversation you must ask questions, you must take the time to delve into the pain points of your customer, obstacles confronting them and opportunities they would like to take advantage of. Having the value conversation takes time but when you then put a proposal in front of your client you will have much likelihood of success.
The next topic I cover is that of Speed & Simplicity. Too often I see businesses being so caught up in the day to day that the business becomes slow to get to market, slow to innovate, slow to change. But it is speed to deliver, speed to innovate that matters. The next aspect of that is simplicity. Simplicity does not mean simple. It means thorough, elegant, clear and easily understood. We must avoid to make things too complex.
The next topic is that of specialisation. For consultants, professional service firms, experts and anybody else in the ideas business have to stand for something. It is important that you build a profile and positioning based on your expertise. We do not do that by being a generalist. Specialisation is the source of profits.
The last topic I covered was that of a Peter Drucker quote – there are only two functions of a business – Marketing & Innovation the rest are costs (not a direct quote). The focus of the business must be on the marketing and innovation. Innovation does not necessarily mean large new product changes. Innovation can mean small changes that add value for the customer.