Collect client requirements
Determine solution costs
Set price based on cost
Truly understanding what a client is looking for requires going beyond the “written” agenda in an RFP. Gaining access to decision makers and fostering inside support and coaches is critical.
The cost of a solution does not always equate to the value that a client perceives. Clients may value certain less expensive products / services more than costly alternatives depending on their priorities and needs
Applying a standard margin on top of cost neglects to take into account true value. This pricing tends to result in discussions focused on how to reduce cost
Define the proposition and value
Understand the client and their willingness to pay
Develop the solution or multiple options for the client
Understanding and quantifying how the client values your services / products and how you are differentiated from competitors is critical.
Estimating a client’s willingness to pay should consider the competitive landscape, the size of the deal, and the client’s attributes and needs
Creating and comparing multiple options that could satisfy the client’s needs within their budget reorients the discussion to be about value
Cost-plus approach
Value-based selling
click on the graphic to read more
click on the graphic to read more