Description:
Today we are joined by Per “The Price Whisperer” Sjofors. I think as businesses we can all agree that pricing is one of those things that can make or break your business. If you don't price yourself right, it could lead to all sorts of problems. Per is THE pricing expert and it was a real pleasure talking with him!
We start, of course, by diving into his story. He's helped build or grow multi-million dollar companies before doing what he does today helping businesses with their pricing strategy. Throughout it all, his CEO journey, he always was fascinated by pricing and the impact it has. In fact, he had developed a formula years ago and thought he had it figured out. Today, he admits that formula did not work.
Today he has new ways of developing a businesses pricing strategy including using an AI system he built to help crunch the numbers. He shares real stories and examples from the trenches (which we love!). Learn the power of increasing prices and how it can help select your best customers. Learn how to defend those decisions to your paying customers or clients.
Learn what willingness to pay research and how people equate value to price. And finally I asked the question, how does a small business figure out how to price their products or services? What methods can be used? Great stuff! Important topic for all of us.. enjoy!
Per “The Price Whisperer” Sjofors
Per, aka “The Price Whisperer”, is a thought leader and author in everything pricing and how companies can use pricing to drive higher growth, sales volume, and profits. He is a sought-after speaker for various conferences, appears regularly on podcasts and business radio shows, and gets routinely quoted in the financial and business press.
THE MEAT OF IT!
- Intro
- Why focus on Pricing?
- His entrepreneurial story..
- Working for a tech company when he was convinced to go into sales .. and to build a company. Knowing nothing.
- CEO positions
- Experimented with pricing.
- Developed a formula.. that he now knows is completely wrong.
- Having the guts to taking the jump .. into business.
- How do you get to your pricing?
- Pricing – what you don’t actually know about your competitors prices.
- Pricing to the market?
- In most cases its guesswork.
- Expectation bias – the price sets the expectation of the value you provide to your clients.
- Danger of becoming a commodity business. Lowest price wins
- How it affects customer satisfaction
- Pricing on the ‘9' .. how the numbers we use in our pricing influence sales.
- Price walls – psychological price points for a small price changes generates significant change in sales volume
- Revenue against sales volume
- The Cheetah analogy
- Your Price selects your customers
- Defending higher prices
- Some great ‘from the trenches’ examples
- Differentiating your product or services is really a key to gaining “Pricing Power”
- Willingness to pay research
- How people equate value with price
- They created an AI based software that crunches the data and predicts ..
- How a start up or small company can figure out their price ranges
- Identify 25 potential customers
- So low, over promising and under deliver
- So high, over deliver and under promise
- The average of those 2 questions
- Continuing to 100 .. developing profiles. And start targeting marketing towards higher range.
- Identify 25 potential customers
- How to poll people
- Panel companies
- Incentivize
- Profiling
- Don’t be afraid of increasing.. worst things that can happen.
- Messaging is important
- How you position yourself can support higher prices
Check out these related Episodes:
- Episode 97: Bob Hunter – You Got a Business Loan.. The Right Way to Spend it On Staffing. Hiring Offshore.
- Episode 93: Kristi Spencer – Learn About Etiquette Related to Teams, Customer Service, Clients & More!
- Episode 71: Pricing – UWD Update, Team to Retainers to Hourly, The Million Dollar Agency Goal
