September 19, 2020
Reader question: “How do I value price positioning?” (part 2)
Here’s a juicy follow-up question from Pranav regarding my message from yesterday:
I understand that positioning is valuable to a certain audience. However, when it comes to putting a number on this positioning exercise, is it possible? Is positioning worth USD 50,000 to my clients? Or is it USD 100,000? How do we measure this?
Yes, it is possible to put a value on positioning (or any other upstream service).
Once you find a client who wants you to help with their positioning, you need to find out why they want that.
They don’t want positioning just for funsies. They want a business outcome that they believe positioning will contribute to.
Things like:
- Decreased customer churn
- Increased customer satisfaction
- Increased revenue
- Increased profits
- Increased market share
- Shorter sales cycles
- Decreased salesperson turnover
Once you know what needle they’re trying to move, you can ask them how far they’d like to move it, and what that might mean for their business.
This will tell you roughly what the overall initiative is worth to them (i.e., the value) which you can then plug into my Value Pricing Calculator to come up with prices for three proposal options.
Yours,
—J