Projects

Pricing strategy

Reset the prices.

Your business should earn more. For that, it has to be settled which offer carries it.

I work out which service makes money, which only brings in revenue and which work no customer pays for. That becomes an offer with prices your sales team can hold.

Situation

Sound familiar?

Little left over“The revenue’s there, but nothing’s left at the bottom line.”

Then the business does work no customer pays for. That’s where I start.Place 03 · What keeps running because nobody stops it

Everything on offer“We offer everything, and nobody asks for anything in particular.”

Whoever offers everything gets found for nothing. Still open: what no longer gets offered.Place 01 · The decision that was never made

Old prices“If we put our prices up, customers will leave.”

Often the ones who leave are already paying too little. The question is who stays.Place 01 · The decision that was never made

A price decides who you work for.

It happens to good businesses. Usually when they have grown faster than their decisions.

What becomes possible

  • Every price can be justified, including in a conversation with the customer.
  • Discounts follow a rule and have a name.
  • The offer that carries the business gets the marketing, the sales effort and the care.

Who takes on what

I

  • work out which service makes money
  • prepare every decision
  • write the rule by which prices are set
  • lead the rebuild
  • check against the criteria and hand over

You

  • decide which offer stays
  • set the prices
  • sign off

Your sales team

  • sells by the rule
  • flags where a customer deviates

How I go about it

  1. ReadI read five places: services, customers, prices, effort and sales. Each ends in a question that is answered before a price goes up.
  2. DecideEvery offer gets one of three words: carry, change, cut. I prepare, you decide.
  3. LeadFirst the architecture: which offers stay, which go, which prices apply and who may deviate from them. Then I lead the build.
  4. CloseI check against the criteria set at the start and hand over. For the offer an operating manual: what is sold, to whom, at what price.

How decisions reach everyone and what each format delivers

What may lie behind it

What an offer without a decision costs.

Offers everyone maintains and nobody sells. Discounts by gut feeling. Small jobs that wreck the schedule. Prices nobody has touched in years.

If it is about an offer that doesn’t exist yet, a different question comes first: what the new line of business is meant to achieve.

Build a new line of business

How you know it is done

  • For every offer it is settled whether it carries the business, and at what margin.
  • Prices are set by a written rule.
  • It is settled who may give a discount and how much.
  • What the architecture says has been built. Signed off point by point.

The criteria are set before anything is built.

Decided

“Our biggest client is demanding a special price.”

No special price, not even for the biggest client.

Found: This one client took more effort than any other and tied up a large part of the team.

The client left. The team has capacity for new clients again.

Limits

I don’t do bookkeeping or tax advice, and I don’t negotiate with your customers. I set which offer carries the business and by what rule prices are set. You do the costing and the selling, and you sell better when it is settled what for.

For comparison: What does a management consultant cost?

Conversation

Before the next offer is added, it is settled which one carries the business.

Twenty minutes, free of charge, nothing to prepare. You describe your situation, I tell you whether and where I would start. You know what a format costs before we begin.

How the call works

Optional: seven questions in advance