Pricing and Value Based Fees
Consider these facts:
- Research has shown consistently that, in most industries, price is not in the top five considerations when choosing a vendor.
- In our experience, the optimal price significantly aides in facilitating project participation, perceived value, and consequent implementation of the recommendations.
- A surprising number of perfectly viable proposals are dismissed because their pricing is actually too low to be credible.
Keys To Value Pricing:
We have been able to improve the net margins of every client we work with. The key is positioning your solution for:
- An urgent need
- Few substitutions
- Proof that it will work
- A solution specific to an industry and a situation
The biggest issue in pricing often comes down to the seller mentality versus the buyer mentality. Some sellers, personally, tend to buy mainly on price, so its no surprise that they struggle to sell value. When sellers buy value, they can usually sell value. It is still possible for people who buy on price to learn to sell value, but the road is significantly longer.
After thorough analysis and the right participation from our clients, we have always been able to enhance margins, often dramatically, with few or no loss of clients.
To find out more about APG7’s work in value pricing, please contact us.
