These Are Not the Same A surprising number of leadership teams believe they have productized their services when in reality they have just redesigned their pricing page. There is a meaningful difference between tiered pricing, bundled offerings, packaging, and true productization. When those distinctions are unclear internally, margin erosion usually follows. How They Differ Tiered pricing is about how much…
Have you ever been in a situation where a prospective client was enthusiastic about your services until they heard the price? Or perhaps you've encountered prospects who balk at your fees even before you have had a chance to discuss them. If this sounds familiar, you're not alone. For many businesses, especially small to mid-sized companies, price resistance is a…
When most business leaders set prices, they focus on models such as cost-plus, value-based pricing, or competitive pricing. They may do this because their research is centered on their competitors or their company’s financial needs and historical results, or they may not know of other pricing strategies that could work better. The wrong strategy will hold your growth back; the…
If you are looking to grow or scale your business (and who isn’t?) you will want to review your offerings and productize. If you’re not familiar with the term, this blog explains the concept relative to its impact on revenue. The revenue impact alone is a powerful advantage for any company, but there are many other benefits that will give…
Is Your Pricing Strategy Holding Back Growth? Have you ever felt that you lost a sale due to your pricing? Did you assume your pricing was too high, or had you considered whether those lost sales might actually have been the result of underpricing? Underpricing is just one way you could be leaving money on the table, and it’s a…
If you’re still structuring your offerings as “Good, Better, Best,” it’s time to rethink your productization approach. That method worked in the past, but it’s not as effective today, and it could be the reason you’re not converting as much business as you should. Today’s buyers expect more than a basic triage of cookie-cutter options. They want personalization and custom…
B2B and SaaS companies frequently discount their fees or offer incentives to close a deal. This is a widespread practice that may even lead to offering increased discounts at the end of a sales process. Because this is such a widespread tactic, we decided to present some information for you to consider, as well as several ways you can avoid…
When B2B business owners in service industries start their businesses, they typically set an hourly rate. To set this rate, they will likely consider the fees charged by the last company they worked for, how much they were being paid as an employee, how much their competitors charge, or a combination of all three. This may be great for those…
Many companies offer lower, introductory pricing to grow their client base. But is this a good idea? That turns out to be a more difficult question than it may seem to be. What happens to your brand when you attract new customers by giving them a lower price as an incentive to sign-on? In marketing, we refer to this as…
Will 2025 be a profitable year for your company? I know you want it to be, but will it? Unless you've been stranded in the desert (under a rock), you know we've just had an election here in the USA, and the outcome will shift the party in control. Expected economic policy changes will most likely impact your business -…