“Everywhere I turn there’s advice on making 2022 a better year. But I’m not sure how to choose the real game changer. What do you think?” This question from CEOs keeps popping up during our phone calls.
What do you do when similar thoughts start going through your mind?
Do you cast about for the two, three or ten steps towards better results in 2022?
Or do you choose ONE because it’s the real game changer?
What is THE game changer that will help the company and your 2022 results?
- Is it marketing?
- Is it new products or services?
- Is it your choice of pricing method?
Marketing is defined as attracting prospects and retaining existing buyers. Effective marketing will certainly help bring in revenue in the coming year. But is marketing itself a game changer?
You could decide to offer new services and products in 2022. New options may refresh your internal team and excite your existing buyers. If your new offering fills a need, want, or desire of your clients or prospects, it will generate new revenue. But are new offerings a game changer?
Or…You could go way back “behind the curtain” so to speak and work on your pricing method. Pricing method is HOW you arrive at your prices and fees. It is the required first step before you can set the actual prices or fees whether for existing offers or for those exciting new ones.
Pricing method is the game changer!
Here’s why:
When your pricing method is value based pricing—charging for the life changing value you deliver to clients—you’ve changed the game. No competition, no cancellations, no out of whack cash flow.
Value based pricing influences your marketing efforts: the content you distribute, the audience to whom you distribute it, and the calls-to-action to existing and new buyers. You’re marketing the life changing value you deliver, not features, benefits, and competitive prices.
Value based pricing leads you to develop new products and services that are attractive because of the life changing value the buyer receives. These new services should support deeper and closer relationships which in turn uncover new needs, wants, and desires and the opportunity for new services that clients can’t wait to buy.
Pricing Method First
Taking a fresh, deep look at your pricing method first allows your firm to go forward with both marketing and new offerings with confidence that:
- You’ll appeal to the audience you really want
- Your sales will increase
- Your profit will grow.
When all is said and done, it’s profit that keeps your company in business.
Value Based Pricing Increases Profit Faster and Higher than Other Methods
This Safety Consultant was delighted with the additional profit to his firm after adopting Value Based Pricing. Here is his story:
“We advise companies in high risk environments about how they can reduce their risks with better safety practices.
A typical engagement begins with an inspection of their premises. We used to project the number of hours it would take and multiply that by the hourly rates of the inspectors we would send to arrive at a quoted price.
Inevitably, no matter how careful we were, the final tally would be significantly higher than our projection. There were lots of angry calls and we often ended reducing the invoice.
Since we adopted Value Based Pricing in early 2021, we tell the clients that we spend as long as it takes to cover every inch of their facility. They will never have to worry about the meter running. They will not pay a penny more than the quoted fee. If they have questions about our offer, we discuss them in advance and come to an agreement before we start. They love it and we have increased our profit by more than 20%.”
What’s Your Game Changer for 2022?
If it’s your pricing method, we’ll get you started with a Starter Call. Book a date here or text START to 703-801-0345 for the very fastest reply.
