Brilliant Conversationalist Pricing Method: Raise Your Prices Without Trying |  |
| Brilliant Conversationalist Pricing Method: Raise Your Prices Without Trying Posted: 24 Jun 2012 11:00 AM PDT This is the “how to” follow up to my previous post titled, “Your Pricing Approach: Wallflower, Arrogant Jerk, or Brilliant Conversationalist.” Here, we will be covering the “brilliant conversationalist” pricing method and you will need to create a three-column worksheet with the columns titled “Thing,” "How Help" and "Worth," respectively.
Step One In the first column, list all the things your customers and prospects want to achieve by purchasing your product and services. For example, assume you run a hearing aid clinic. One of the things you may list in this column is that your customer wants "better ability to hear conversations." Step Two Move to the second column, the "How Help" column. For each item in the first column, write down how it is that your product or service helps your customer achieve that thing. Be as specific as possible. Following our hearing aid clinic example, you might write that you match your customer with the best hearing solution for their specific hearing loss profile, attitude, and price profile. Step Three Now move over to the third column. For each item, you want to identify what you believe achieving that thing is worth to your customer. A lot of business owners find this step challenging because it is often difficult (or impossible) to put a number to how much some items are worth to your customer. But just because you can't put a number to something doesn't mean it isn't important. In fact, sometimes the most powerful benefits your products and services provide can't be measured by a monetary value. So if you can't come up with a specific number, that's completely fine. In those cases, provide a subjective description of what you believe it is worth. Following our example, you may identify the hearing aid as being worth "more fun and enjoyment when dining with friends and family by being able to fully participate in conversations again." Step Four This step is a bit more involved and there are two things to say about it. The first is that most business owners who read this post will NOT take action and do this step because it takes some effort. The second thing is that it is THIS step that really gives the power to the brilliant conversationalist pricing method. In this step, you ask some of your existing customers "What does buying our product or service mean to you?" And then you listen and record what they say. This step allows you to take the benefits your customers REALLY get from purchasing your products and services, and relate them to the items you have put on your worksheet. The key in this step is to record exactly what they say, using the words they use. Even if what you hear is something you never even thought of – record it. Because you are hearing (remember, this is a conversationalist approach to pricing) what benefits your customers receive and what your products and services really mean to them. Continuing with the example we've been using – you could find that your customer tells you that what they get from buying your hearing aid is the ability to hear what their grandchildren tell them without always asking them to repeat it; or being able to hear their granddaughter recite her wedding vows. Now you can relate the items you've listed, the benefits you have identified, and the benefits your customers tell you they get to each other. Use this knowledge to set your prices with much more clarity and confidence. You will almost always find this exercise gives you the confidence to raise your prices based on the value you provide. This will give you a nice bump in profitability, and make you even more proud of what you do. So go ahead. Have a conversation with your customers. You will NOT regret it – ever.
From Small Business Trends |
| Read Great from the Start and Build a Better Business Posted: 24 Jun 2012 05:00 AM PDT
Great from the Start is a book that's targeted at startups. But when I consider that there are roughly 28 million small businesses in the United States in which over 80% have sales of a million dollars or less and are founded by people with a vision or a passion for making a difference in the world – I find myself wondering how many of them would take the time to read what's contained between these covers and implement any of it. But that's just me. This is an extremely well laid out and thoughtful book. I might go so far as to say that it's a virtual handbook on creating and starting a successful business from start to success. The author, John Montgomery has taken his entire professional career of working with startups and condensed it into this useful book. Great from the Start is a blueprint for turning your idea into a successful company. You can read this book from start to finish, or you can turn to any of the chapters that you feel will be most useful to you. Another interesting aspect of this book is that it's also a workbook with exercises to help you convert your ideas from pie-in-the-sky thoughts into clear and concise action plans. At the end of each chapter, you'll find a summary of key points and collaborative exercises that you can practice with your team in working and planning together. I really like the way Montgomery has interwoven expert advice from business owners who have been through the process inside of each chapter and section. That's how you know that the content came from the real world and is supplemented by any intellectual or academic theory or philosophy – instead of the other way around. Here are some of the topics covered in the book:
About the Author John Montgomery is a busy guy. He's a corporate attorney, entrepreneur, executive coach and writer. He's the founder of Montgomery and Hansen, a Silicon Valley based corporate law firm, he's also founded Startworks, a technology incubator. In addition to several other accomplishments, he's a student of non-dual philosophical systems, neuroscience developmental theory and organizational development. What's Great in Great from the Start It might be an over-statement to say that Great from the Start is the only book you'll ever want to read if you're going through a startup – but I don't think I'm too far off. This is about as comprehensive a book you're going to read that doesn't come in volumes. This is also a book that goes beyond the startup. After all, startups aren't just companies, they can be business units or product teams. These days every company is going through some type of startup in one way or another. And those kinds of organizations can really benefit from this book. What To Look Out For As you might imagine, when confronted with so much information inside a compact package, you can expect to be overwhelmed by it all. That is one thing that I see that could turn you off. It might help if you eat this elephant one bite at a time and treat each section or chapter as a book in and of itself. This is a book that is squarely aimed at business owners, general managers and entrepreneurs. Montgomery recommends, and I concur, that it's a good idea to have your whole team read this book and use it as a guide as you go about the business of building and growing your business. From Small Business Trends |
As I crack open the freshly minted review copy of | You are subscribed to email updates from Small Business News, Tips, Advice - Small Business Trends To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
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