Pricing is a complex matter – especially in services.
The complexity has further increased due to COVID.
But should you change your pricing during the early recovery phases? These are the strategies that work.
The common perceptions (mostly true):
- Prospects more conscious about spending
- We need to show we are accommodating
- Competition is ready to do it for less to survive
There are 3 ways to respond -
+ Survive and close faster
+ Client doesn’t move to competition
- Working upwards to normal pricing is an uphill task
- Perception of your cost structure gets solidified
Hold your ground
+ Chant quality over quantity
+ Retain positioning
- Lost opportunities can be expensive
a. Add a min relationship value for a discount
b. Provide deferred benefits, like PSCS/ warranty
Change the paradigm:
a. Allow sampling more products/ services
b. Require adoption of other products/ services
a. Require 25% of discounts to go to a charity
b. Tie to other wins – say stock price
+ Changes the way the cost-benefit is seen
+ Creates new revenue opportunities for tomorrow
+ Reminds them of actual pricing of your services
- Too hard to deploy for simple buys
Pricing is beyond ‘price’.
The key thing to consider today is not how to get more, but how to build a relationship that keeps getting you.
Have you tried any creative ways?