And finally, this hallowed Halloween Day, we are talking about most folks’ scariest step in the sales process: Price negotiation. And who could be a better person to talk about this topic than recent Client Tale Jason Blumer of his Blumer & Associates CPAs. His accountant-y sounding name doesn’t do justice to the way he and his brand have revolutionized and modernized his industry, particularly on the topic of price.
Most companies go after quantity when it comes to getting new clients. What if you went after quality instead? If I were to ask you, “Do you win every pitch that you make to a new lead?” what would you say? I used to answer this question proudly as “Yes!” But I’ve learned that winning every client that comes my way is often bad for business. I should focus on quality, not quantity. The best clients trust me enough to let our firm change their lives and really make change in their companies. Those clients that are just price shopping are not ready to really let us help them.
Here are three things that we’ve learned about our prices that help us focus on quality, not necessarily quantity:
If you are winning every pitch, then you probably need to raise your prices. Winning every pitch is a sign that you are not properly monitoring supply vs. demand. There is not enough supply (your firm’s resources) to go around to the whole world, right? But if you are getting a lot of leads, then your demand is high. To better match supply vs. demand, raise your prices (signifying that your supply is limited,) and then you’ll see demand slow, but with higher profit margins.
2. Price is a statement of your value
One sure way to make a value statement to potential new clients is to have a price that says, “We are good at what we do, and we know it.” This kind of confidence lets the right clients know that you are going to take care of them, and do a good job in the process. It’s true, a higher price means you can’t serve everyone anymore. Some won’t be able to pay your price. But you shouldn’t be attempting to serve everyone anyway. You’re not right for everyone, are you? Let the world know that you only serve a select few by raising your prices.
3. Price is a differentiator
How do you differentiate yourself among your competitors? It’s hard to do. But a higher price is the very first thing you can do tomorrow to say “We are different.” A high price is making a statement, “We are different and we know it, so our prices are higher.” A price that is higher than a competitor will make a potential lead ask, “Why are you so much more?” That is a great question, and one you want clients asking! You get to answer with all of the ways you are more valuable than your competitors. If you want to say “We Are Different!” then raise your prices to start the conversation.
Jason Blumer has the glorious title of Chief Innovation Officer — something all us startups look at as priority #1. The firm’s leader has experience in heading a successful off-site team and reinventing your financial future.