Hourly rates and other time based pricing practices give your firm confidence. They’re simple and straightforward. and once rates are set, every client is charged those rates. You have no worries! You: Don’t have to know too much about the client’s needs, wants, or desires. They told you they’re looking for X services. You tell … Continue reading Hmmm…Could Confidence Limit Your Profits?
“Every month I keep my fingers crossed when I look at the profits on our Profit & Loss statement” the Owner of a web design agency told me. “Why?” I asked. “Because it’s always disappointing. Our team has amazing creativity and skills and profits never seems to keep up with that. The more they know, … Continue reading Are Your Profits Depressed? Here’s How to Tell
Cyber Monday is all about making big sales online the Monday following Thanksgiving. But, you don’t sell sweaters, electronics, or sporting goods, which are all the rage on Cyber Monday. Could your services firm get a holiday season boost on Cyber Monday? Yes, you can! Services firms are in business to deliver life-changing outcomes to … Continue reading Should You Make a Cyber Monday Special Offer?
Ask any marketing expert or advisor and they’ll tell you to learn and follow the 4 Ps of Marketing, or the Marketing Mix: Product, Price, Place, and Promotion. They’ll help your company apply the 4 Ps of the Marketing Mix if you can’t or won’t do it yourself. (That’s a good thing by the way!) … Continue reading Is the 4-P Marketing Mix Costing You Money?
What if charging for time communicates to clients and prospects that “We focus on our internal interests above all. When we focus on OUR interests we will prosper as a firm.” How Does this Happen? All time-based pricing models look at the hours in a week as the foundational resource. As with any resource, the … Continue reading Is THIS What You Want Your Clients to Believe?
“Pricing Model” means how the firm charges for its services and products. There are two primary options: time based, and value based.* Which Executive Should Choose the Pricing Model? Chief Financial Officer (CFO)? Companies typically look to the CFO for all their financial advice. The CFO knows the firm’s financials well, has been trained to … Continue reading CEO, CFO, CMO: Who Chooses Firm’s Pricing Model?
Numbers don’t have intrinsic meaning. What would 10 mean to you if you didn’t understand the number 1? Numbers have meaning because you’ve learned context or relationships. When a kid first learns numbers, they just learn the names of the numbers. When they learn to count, they see various groupings of objects and the word … Continue reading Dread Falling Revenue? Uncover the Stories Behind It
Creatives, Knowledge-based Professionals, Specialists or SMEs–When your firm factors competitor’s prices into your prices, you’ve chosen the one thing that is guaranteed to kill your revenue. How? Your firm: Becomes a commodity without differentiation Is subject to every downward trend in pricing Needs more and more volume to increase revenue Three Pricing Points of View … Continue reading Do This One Thing and Kill Your Revenue
Do you ever ask yourself “Are we leaving money on the table?” Many firms successfully cover their costs and make a profit. And yet—they wonder “are we leaving money and profit on the table?” The answer is too often “yes,” and the cause is their choice of pricing model. While a solid strategy, brand and … Continue reading Value Based Pricing Cold Feet? Warm Up This Way
Do a search for cost plus pricing and you’ll get 75 million hits. The vast majority of these will state that cost plus pricing is a terrible pricing model and to avoid it like the plague. These writers assume the worst about companies’ ability and interest in doing the hard work required to price effectively. … Continue reading What Critics Have Wrong about Cost Plus Pricing