Lexus ranks first in reliability according to several recent studies of cars in the US.
And reliability is the most important characteristic to car buyers, also according to several surveys.
So let’s use Lexus to demonstrate how your firm can use the Choice Framework for IMPACT Based Pricing proposals.
I know that your firm’s business depends on knowledge and expertise, not on four wheels and an engine.
However, that’s the beauty of analogies! They help you get insight into one kind of business through another.
Let’s say you are in the market for a new car.
You, like the vast majority of car buyers, want the new car to be highly reliable.
So you research and find out that Lexus ranks the highest on reliability, and you decide that’s the brand you’re going to focus on.
You study the Lexus line up and you realize you have some other desires in mind.
You make a list:
- Comfort
- Interior luxury
- Convenience
- Room for your sports equipment
- Then you go on thinking: it would be fun for my car to make a statement about me. “I’m well-off financially, I am elegant.”
If I were to design three options using my Choice Framework, they would look like these:
IMPACT PLUS: You feel proud of your financial success and your elegant taste and style.
IMPACT: You love the convenience of the car automatically returning to your preset seat position, radio station, and climate control.
And IMPACT Light: You feel great knowing that your car will get you from here to there in all circumstances you’re likely to encounter.
The price for each option would be proportional to the IMPACTs or life changing differences delivered in each.
One thing would be constant through all the options: Lexus reliability.
The buyer of the luxury sedan with every single bell and whistle and the buyer of the smallest sedan with the basic package would know that their vehicle comes with Lexus’ reliability built in.
How to apply this to your business
Some professionals have challenged me about the three options. They don’t want to offer anything that is less than top quality.
And I say, I’m not telling you to do that!
Your firm’s usual quality is a given for each option.
The difference between the options is in IMPACTs and the significance of the IMPACTs to the buyer.
To begin designing the three options, choose labels that do not suggest a difference in quality. Avoid the old good-better-best or silver-platinum-gold.
Every option is the best or the platinum!
I use IMPACT PLUS, IMPACT, and IMPACT Light. Some of my clients use Core, Growth, Scale, or Core, Enhanced and Global.
Notice that these others are communicating there is more significance in their options, which is exactly right.
Try it yourself
That’s your task right now: what life changing differences does your knowledge and expertise deliver to clients?
Quickly make a list of the ideas that come to mind. Don’t stop to edit or agonize.
Once you have a list of 15 or so, sort them into groups.
Which of them are the most significant?
Which of them are the foundation of your work?
What is in between?
Choose your labels
You can use IMPACT PLUS, IMPACT, and IMPACT Light if you like. Or think of other words that feel meaningful to you and your clientele.
Remember, the quality your firm is known for is baked into each and very option you design.
If you’re a lawyer, all your options are legally sound,
If you’re a subject matter expert, all your options will reflect the latest expertise you have acquired.
Or if you’re a digital designer, all your options will be based on the latest and best technology and design considerations.
If you’re a fractional CXO, all of your options will reflect the most important changes in the industry, whether financial, HR, marketing, and so on.
Questions or comments?
Text IMPACT to 703-801-0345.
I’d love to her from you about how you’re doing designing options for your firm.
