Why a software approach to pricing gets better prices

value pricing Jul 25, 2016

3 reasons why a software approach to pricing gets better results

When it comes to value pricing using a software systemised approach will give you a much better result.

When you ask a client a series of questions they identify – based on their answers – what they value. You in turn come up with a price that meets their perception of value. It makes sense.

When you do that using software in front of a client it’s even more powerful. 

Why?

There are three key reasons:

Reason 1 – Greater transparency

The client can see how the price is being built up. There’s transparency, credibility and trust. They know you aren’t just plucking a figure out of the air. They believe you.

Reason 2 – The psychology of putting the customer in control

It’s well known that when the customer feels like they are in control they will spend more money. I can vouch for it. I recently bought a Mac computer online from Apple. I knew exactly what I wanted and its cost - £899.

But then they offered me the ‘customise your Mac’ option.

I couldn’t help myself. I spent nearly twice what I’d planned. I knew the price psychology behind what they were doing but I happily gave into it. I was in control. My extra spend was ok.

Reason 3 – The opportunity to convert more

This is actually the most powerful reason to use a software-based process of all. Traditionally when a client has asked for a quote you tell them that you will put together a full proposal and send it to them.

The proposal will justify the price and arrive by email or post.

But the hard work, consideration and arguments for that end price are ignored. The client turns straight to the price. A decision is made based largely on the number rather than the words before it.

Do you ever hear from them again? Do you ever find out if your price was too high? Or too low?

Most of the time your carefully crafted proposal simply becomes a bargaining tool. They go to your competitor down the road and ask them to beat your price.

A software based approach allows you to have the conversation there and then. It allows the client to say ‘That’s above my budget – what can you do?’. They can see the amends that you make to the package and the effect that has on the price. And, at some point in the tinkering they will be happy. They will say ‘Great, I can afford that – I want that. Where do I sign?'

Your conversions go up.

This is the essence of why I created Cloud Pricing. You can price with your clients on your tablet, your desktop or your laptop – wherever. The crucial point is they are there making the decision with you.

Find out the 3 key reasons why a software approach to pricing gets you far better results.

 

You can watch the video here.

You can find out more about the software here.

Wishing you every success on your pricing journey

Mark Wickersham
Chartered Accountant, public speaker and #1 best-selling author of
Effective Pricing for Accountants

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