March 23, 2020
How positioning and pricing contribute to profits
Sent by Jonathan Stark on March 23rd, 2020
In the middle of last week, Rochelle and I rushed out a special episode to help you know what to do next when you don’t know what to do next. If you missed that show, you can listen here.
In the spirit of settling into a new normal, we released a regularly scheduled episode today. The subject is how positioning and pricing contribute to profits.
It’s just as relevant as ever but it was recorded prior to the pandemic, so I hope it doesn’t come across as tone deaf in the current context.
From both of us, stay safe and keep moving forward!
Talking Points
- The concept of value pricing
- Price vs. hourly rate
- Setting acceptable prices
- Paul Newman’s Rolex
- How to differentiate yourself from the competition so that price isn’t the only distinction
- How big corporations choose between different prices
- How positioning affects your leverage
- Ways to set prices
- How your prices can rise over time
- Having the courage to keep charging more
- A fixed price can be a meaningful differentiation
- How hourly billing punishes experience
- Selling access to expertise
- Owning your space
- Impact and influence
Quotable Quotes
“If you’re renting yourself out by the hour, then you’re not pricing anything. That’s not a price.” –JS
“When you lead with your hourly rate, it gives clients a point of reference that isn’t valid.” –RM
“If your audience are big corporates, a lot of times they have to choose the lowest price.” --RM
“If you are the obvious choice, then those other “competitors” are just not on the table anymore.” –JS
Sharing is caring!
If you enjoyed this episode, please consider sharing it with a few friends who might find it useful. Thanks!
Yours,
—J