During initial conversations, prospective customers often tell me they’re looking for a TCO (Total Cost of Ownership) calculator or tool. My typical response is to ask what they’re trying to accomplish so we can explore which tool (or tools) will best serve their needs. More often than not, a TCO tool can be helpful, but it may not the best solution.
PwC’s June 2024 Pulse Survey found that "58% of CFOs say they’re spending more time on tech investment and implementation." The same study also found that 44% of CFOs identified "increasing use of technology to reduce costs" as their most important funding action.
The best way to increase your average selling price (and earn more commission) is to use a value selling methodology. Value selling is a proven approach to avoid or minimize price discounting and increase upselling and cross-selling, which all contribute to a higher selling price.
Previous posts in our series on value pricing have examined its risks, rewards, and mechanics, all with the goal of maximizing earnings for your company. Let’s expand on this foundation with practical tips and methods for considering the impact and likely market response to your pricing decisions.
One of our earliest blog posts titled Why Value Based Selling is So Successful is still one of our most popular posts. It opens by defining value-based selling as an approach “built on quantifying the impact the service makes on the customer’s financial performance,” based on a reference from Sequeira Consulting’s website.
Our series on value pricing continues with a detailed look at how to set prices that benefit both you and your customers. Now that you understand the risks of other pricing models and how value pricing leverages the value your offering creates for customers to maximize earnings for your company, let’s look at one way to actually calculate the optimal price and the data you would need to populate the formula.
What’s your strategy for determining the optimal price for your B2B offering? If you check Wikipedia, the obvious source of all that’s true in the known universe, you’ll find 26 different pricing models or strategies. In this first of a series focused on value pricing, let’s take a closer look at how you can set prices that benefit both you and your customers.
What can Aristotle teach us about value selling? Aristotle? Value selling? The link between one of the greatest thinkers of the Western world and value-based sales processes is stronger than you would think!
Your ability to help B2B buyers understand the value you provide can make or break the sale. In some cases, as with our client IQS, that means communicating the ways in which the prospect or customer is losing money so that the buyer understands the potential of the solution.
A compelling value proposition is critical to sales success. It can, without a doubt, make or “brake” a sale and is often the root cause when new products or solutions fail to reach their destination. Without a clear value map or an understanding of “what’s in it for them,” prospects have little reason to invest in your offering.
