Have you segmented your client base into A, B, C, D clients? On what basis are they segmented – contribution to revenue, profit, good looks, clever wit, political influence, or the kind of car they drive?
In a free market you can charge what you like, to whom you like and when you like so long as you stay within the law and remain solvent.
The thing is though citizens of our democracy have some notion of ‘fair’. People don’t like it when you play favorites – if they are not considered one of your favorites, that is.
People don’t like sitting on a plane knowing that their fare was $500 dearer than the person beside them. Similarly, if I knew my dentist charged you less than me I would no doubt get huffy.
How you present your price is important. Did the person on the plane leave it to the last minute to book? Is my dentist rewarding you for more dental work over the last year?
It’s not always what you charge that’s important – it’s how you charge. You need a credible reason for charging people differently.
Take a look at this interesting blog post by J.C. Bradbury, author of ‘The Baseball Economist’.
©2010 Jane Francis is the author of Price Yourself Right: A guide to charging what you are worth (ISBN: 0-595-38601-6) available at Barnes and Noble (USA), WH Smith (UK) or online at amazon.com or amazon.co.uk
Jane Francis is available as a coach, speaker and workshop leader to help sales teams and companies pitch and present their price with creativity and confidence.
Tuesday, April 06, 2010
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