Pricing
How do you set your prices, or price rates? Your costs, or cost rates, plus
a margin? Is it by comparison with what your competitors are
charging? Or do you charge for your time at fixed hourly rates?
Does your industry have going rates, a set rate, an average rate for the
job? Do you have a price structure? Or do you charge a retainer
fee?
If you are truly innovative, how do you set a rate? How do you know the
rate charged is correct? Or is there a better way?
What is a reasonable price? Presumably it is what a customer is prepared
to pay, and this will be related to the value they derive from their purchase.
One definition of a sale is the moment when my perception of the value of the product
in your hand exceeds the value of the money in my hand. The value of a litre
bottle of water will be different at mid-day in the middle of the Arabian desert, to what
it is next to a public drinking fountain on a wet Monday afternoon in Manchester!
Customers are not so naïve as to think they should only pay peanuts for everything,
otherwise Del and Rodney Trotter would be the only ones still working!
Your customers can get enormously valuable returns from their bargain investment in you whilst you earn hugely profitable fees! In fact it's both unethical and immoral not to let them!
Sales Help
The best results come when the Sales function is an integral part of a well-planned overall Marketing strategy - Help is at hand!
Register NOW for my September 29th 'Pricing By Value' Workshop.
Free Help and Advice from David Winch
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