In today’s episode, I want to share with you 3 valuable lessons that I’ve learned in my almost 10-year journey to setting high prices.
0:53 – I enjoy talking about pricing simply because I’ve developed a process that really works well not just for setting high prices, but also for landing those high prices.
1:45 – Having looked back at my first packaged plans, I have faced a couple of challenges in pricing. It was not too high, or definitely far too low for the services. There was no way I knew what I was doing.
2:23 – To radically improve my pricing and profitability levels in my firm, it took me years of learning about sales & price theory as well as experimenting with different models.
2:44 – Let’s look at my 3 most valuable lessons when it comes to setting high prices.
2:48 – First, setting a high price requires an understanding of what “price” actually is.
3:00 – “Price is the amount a customer is willing to pay for your goods and services.”
4:33 – As a result, I understood that setting the highest prices comes down to understanding the person and what’s in their head, and then attaching a price to that.
4:50 – Second, high pricing is simply a function of your sales process.
5:11 – It is only if the value that you deliver to your clients is greater than the price that they pay that they will be willing to pay a high price.
6:14 – Thirdly, I learned about the process of achieving this.
6:20 – This is a topic I’ve covered on my blog and in previous podcast episodes, notably episode 39 on why your firm needs sales processes.
6:38 – Here are a few steps that you’ll need in yours. The first step is to set up a discovery call: an hour meeting to extract information on the prospect’s situation and their value drivers.
6:58 – Next, outline three options for the prospect, then add a price that is below the value that you’re creating for the prospect.
7:42 – Your engagement letter. This is where you’re going to define your scope. High prices should come with a protected scope.