In this short video, I’m going to share with you three reasons why having a software systemized approach to value pricing will get you a much better result.
Software is so powerful as a system and we absolutely must have systems, when it comes to pricing – when it comes to value pricing. And that’s why I created Cloud Pricing, so that you could work with your clients and create a price with them.
When you ask a client a series of questions, they identify – based on their answers – what they value and you come up with a price that meets their perception of value.
Now, when you use software in front of a client, there are three big, big advantages.
The first one is this. There’s transparency. In other words, when they can see how the price is being built up, there’s greater credibility, there’s greater trust as opposed to when the client says, “So Mark, how much is that going to cost?” “Oh, it will cost 2,000 pounds. And they know you just plucked a figure out into the air and when they know you’ve plucked a figure out into the air, they’re going to negotiate and push back on price. A software approach has that transparency, greater credibility, believability, trust.
Second reason - even more important - is based on research from price psychologists - is when the customer is in control of the pricing process - when they’re in control and have choice - they spend more money.
Let me give you two quick analogies. For example, if you’re popping into the supermarket on your way home to buy coffee and milk, so you can make a drink when you get back home. That might be all you need – the coffee and the milk. When you get to the supermarket, they give you a basket. “Wow, that’s nice of them.” Why do they do that? Well, they do that for a reason. When you’re going past the coffee with your basket, picking up the coffee, you walk past the biscuits and you think, “Ooh, I’ll have some digestives with my cup of coffee tonight” and you put the biscuits in your basket. How often do you get to the till and find there’s more stuff in your basket then you went in the shop to buy in the first place? That always happens.
Now, Apple, who are the most profitable company on the planet – they know this. I bought a Mac computer from them a little while ago and I bought it online and they take you through a process. They call it, “Now you can customize your Mac” and you tick some boxes and you can add effectively more stuff into the basket. When I did this, I went to buy an 899 pound Mac and even though I know exactly what Apple were doing – the price psychology, the techniques – I can’t help myself and I ended up spending just short of 2,000, over double the price because I was in control. I could pick the things I want. I could create the package I wanted. So, that’s the second reason why you want to use a software based approach.
And the third reason - and this is even more powerful still - is you convert more. Let me explain why. Let’s … The old way of doing things is the client says, “So, how much will that cost?” and we say “Let me think about it. I’ll send you a proposal through the post, or by email.” Now, what happens is, when they get that quote through the post, they go straight to the price and they make a decision based on that number. Is that too high or too low? Very often it’s too high and you never hear from them again. In fact, they probably go to their other accountant down the road and say, “Just had this quote come through the post. Can you beat it?” That’s what happens.
So, you absolutely must have the pricing conversation with the client and when you have a software based approach, when you then reveal the price, only one of two things can happen. Either the client says, “Yeah, I’m happy with that. Yeah, I’ll buy.” Great, fantastic. You’ve made a sale. The only other thing that can happen is, “That’s a bit more than I expected. That’s a bit above my budget.” Well, rather than missing out on the sale, you just simply say, “Okay, no problem. Let’s change a few things” and in front of the client – working with them – you just change the package.
This is why I created Cloud Pricing, a software tool to enable you to do the pricing with your clients -- on iPad, if you want, on your Mac computer, on your laptop. And as a thank you for watching this video, I want to give you a completely free trial copy, so you can play around with it, do some quotes, sit down with some clients and see the results that you get.
Click here to get your 30-day trial https://www.cloud-pricing-software.com. You'll find the coupon code for a free trial on the pricing page.