Stuck on price again? Somewhere in the ‘value-conversation’, you have failed to establish sufficient value which justifies the price you want your training business customer to pay.
Your customers will be always be fixated on price when they don’t perceive sufficient value from your training business solution.
In today’s episode, we address how to elevate price in your customers minds by first creating perceived value. When you do that, you are less likely to be stuck on negotiating price.
But, if you do find yourself discussing price, it’s more likely to be the kind of price you want to charge.
Create perceived value
How come Tony Robbins can charge 100 x what you or I would charge for a training programme? The answer is perceived value.
His videos, his branding, his behaviour, his ‘image’ all succeed in positioning price at the right level in the customers mind.
Price is the product of perception and perception is the product of value.
If you are getting stuck on a low price and find yourself negotiating from a low-price point, you have to take responsibility for this.
Somewhere in the ‘value-conversation’, you have failed to establish sufficient value which justifies the price you want your training business customer to pay.
So, if you want to be in a position to ask your ‘stretch’ price of your customer, you first have to ask yourself: “What is creating perceived value in my client’s mind at this price-point’.
Right now. Before you do another thing, ask yourself:
‘Which impressions of perceived value can you control in order to ‘frame’ the value conversation at the level you want so that you can justify the price you want?
If you can create the value, you can control the price
Negotiate scope not price
A training company I work with has a fantastic infographic which they drop into all their training proposals.
Thanks to this infographic, the decision-maker can ‘see’ the journey they will be on, what they are going to achieve on this ‘journey’ and where they are going to end up.
The customer understands that the training company is not going to come in, deliver face-to-face training (price conversation) then run out the door.
Instead, the training company is going to ‘hold the clients’ hands’ and guide them safely on a capability journey from where they are to where they want to be (value-conversation).
This is why the training proposal also contains a series of packages, each of which contains various options such as a competency-audits, 1-1 coaching, follow-up reports and daily videos embedding learning etc.
(You might see this online when companies offer you ‘platinum’, ‘gold’ and ‘silver’ packages)
Each of these ‘packages’ communicates massive value and provides the buyer with choice.
People like to believe they have choice AND control over that choice.
Your negotiation now shifts from becoming a question of price and becomes more a value-conversation focused on scope
What can you do to move today to create greater perceived value and move your buyer to discussing the scope to deliver that value?
Biggest takeaways you don’t want to miss:
- Which are the areas where you can create impressions to elevate value
- Why perceived value establishes price in the decision-makers mind
- Why your customers like choice and how you can control that choice
- Why mapping out a customer journey can help you sell more at a higher price
- How you can change the conversation from price to scope
Some helpful resources for you
Proposify – Online software to create attractive proposals
Bonjoro – Online platform to create and send personalized videos to customers
Client Portal – Online software to add a customised client portal to your business website
PiktoChart – Online software to create infographics and more
ZOPA – Explanation of the term, Zone of Possible Agreement
Amy Cuddy – Ted Talk from Amy Cuddy, behavioural psychologist