November 23, 2019

Reverse Pricing

After learning how I price custom project proposals, one of the students in The Pricing Seminar referred to value pricing as “reverse pricing” which I like quite a bit.

If you have been billing by the hour, value pricing feels backwards from the way that you would normally create a project proposal.

Here’s why:

One of the big mindset shifts of value pricing is forcing yourself not to worry about scope at all while you’re in the sales interview with the prospect.

When you’re having The Why Conversation your primary goal is to find out the result that the client is trying to achieve.

While you have them on the phone, you want to spend all your time uncovering their desired business outcome. That’s the most important piece.

Trying to figure out how long it’s going to take you to do the thing they want you to do is a distraction. It is a waste of time, and worse, it will cause you to ask all the wrong questions.

This takes a lot of practice, but once you can do it, value pricing really isn’t that hard.