I’m a huge fan of value pricing simply because it can generate tremendous outcomes for the end client at ridiculous profit margins.
It’s a win-win
But it’s not for everyone.
I was finishing up a revenue growth plan for a client, and they can’t value price in the traditional sense.
Instead we’re using productized pricing with performance pricing….
… where 1 client can be worth $25-$30k/mo instead of $5k/mo
Here are the ingredients we are using to give you insight on how to we’re executing this:
1 – A dialed-in system for producing results:
They came with the batteries loaded and are already producing incredible results for clients. Their performance is 3x the industry average.
2 – They are solving a massive problem for a boring industry:
Just like the search fund kids are trying to find “boring” businesses to buy, this crew is serving the boring industry that is only increasing as people age (hint hint)
3 – Calculate your own ROI and only buy when it works:
We eliminate risk in the sales process by creating an ROI calculator (those still work) to show buyers their potential upside when results are handed to them at the door.
4 – Selling a unique mechanism not a service:
In the outreach, inbound, and sales process, I emphasized NOT selling a service because no one wants to buy that. Instead we are selling the outcome as a service.
For example, you don’t pay a brain surgeon to wash their hands, cut you open, and pick your neural network, do you? No you pay them to remove a tumor or install a chip.
So we honed in our service to focus on what the end client gets and anchor everything to that.
That’s it.
Productized pricing can be greater than value pricing, given the situation.