Think Tank Topic: Discounting / Pricing

ELITE : SIX Think Tank meetings are discussed over ZOOM with our members every Friday at 9:30am.

Facilitated by DANNY : DE HEK meetings are recorded for our Podcast, we’ve been doing this since COVID-19 if you’re interested in joining in with us check out our Website at dehek.com

EXPERIENCES

Know when you are deliberately "buying" business. Use selectivelyExpect to be asked for discountsCan be a race to the bottom.Be prepared to say "No"Does it work for my industry?Depends on long term vs short term engagementNeed to know your costs to be able to effectively pricePro services based businesses are harder to discountsKnow your worth … people will try it on at timesDiscounting as a strategy can be used if you have spare capacity to take advantage of; to combat competition; to quit redundant stock - always review discounts to avoid the 'race to the bottom'.Need to know your costs to be able to effectively price

PROBLEMS

Not saying NOIf you pay peanuts, you get monkeysCan sour the relationshipYou can set your bar too low.Upsetting existing clients

SOLUTIONS

Make it an Experience!Knowing when to walk awayKnow where you stand out/your value differenceIf you discount below cost you will likely failKnow your costs/breakeven - Price accordinglyKnow your worth to the clientWhen identifying an hourly based service, Confirm that the rates are current, & consider that rates are valid for a period of time.Don't discount "unique"Learn to effectively articulate your Unique Selling Point. Get you value worth easily understood and quickly.Rather than discounting offer a reduced scope of service. an opportunity to verify & clarify the value of your service.Describe what NOT engaging you would look like to the client

TAKES AWAY

Saying no or negotiating content to reduce priceLook before you leapConsider saying…Thank you but No!…At least you acknowledge appreciation of their offer.You have to know when to ask for money

NEXT WEEKS TOPIC

Defining Customer Expectation

TOP TEN TIMEWASTERS

Shifting PrioritiesInterruptionsTelephoneMessy desk & looking for thingsNo clear goalsPoor delegationInability to say “NO”ProcrastinationPoor planningMeetings

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