27 July Cost-Driven Pricing (...ensure...)

[Paul Terlemezian]

If we are not sure of the return on an investment we are likely to either not make the investment or seek to reduce the risk by lowering the investment.

 

The job of the provider is to maximize our confidence in the return and justify the price not on provider costs but on the likelihood of producing the expected results for the purchaser.

 

Using price vs return as a strategy works until someone else figures out how to provide a competitive offering at a lower price.

 

If your strategy is working then the competitor (internally or externally) will have a difficult barrier to overcome and is not likely to be able to do so for a lower price.

 

The use of social learning or informal learning has a much lower cost than formally developed learning and it has much anecdotal evidence to support it? It will attract cost-conscious learners.

 

What is your strategy to overcome this competitive threat (internally and externally?)

[Paul Terlemezian]

One way to ensure that your client's investment in your services will provide the return they expect is to ask youself the following questions:

 

1. What do I recommend that my client do in order to be successful with what they might purchase from me?

2. How confident am I (and they) that they will do these things well?

3. How can I offer some (or all) of these things so that we are confident that they will be successful?

4. Am I (and they) willing to take the risk of not doing these things?

5. If this risk is stronger than the perceived benefit of using my services - how can I still help my client?