How to Keep the Price-Value Scale in Balance
Episode 55 | Live with the Pricing Lady (Thursdays 15.00 Central European Time)
The price-value scale and what it means to pricing in your business.
When it comes to customers asking for discounts the urge to simply say yes can be hard to resist. Let's face it's an easy thing to do. And (what feels like) an easy way out of a potentially uncomfortable discussion. Some businesses are even tempted to preemptively offer a discount.
Unfortunately the downsides of discounting unnecessarily are significant for you, your business and your customers.
That's why this episode of Live with the Pricing Lady dedicated to helping you understand how you can keep the price-value scale in balance.
- What is it?
- How it can help you? And tactically,
- What does it mean you should be doing?
Enjoy the full episode right here.
Here are the show highlights:
- 00:32 What's in this episode
- 01:24 What's the price-value scale
- 01:45 Price value relationships
- 03:51 Keeping it in mind
- 04:07 Objections and discount requests
- 07:51 The downsides of discounting
- 11:01 What to do
- 16:08 Deal sweeteners
Favorite quotes from this episode:
"Anytime you're doing something, adjusting prices, adding value, whatever you're always adjusting that scale and the perception that people will have." The Pricing Lady
"If you continue with this behavior (discounting unnecessarily) over the medium and long-term, this is where it gets bad, not just for you, but also your customers, because you won't be there to serve them any longer." The Pricing Lady
"One of the downsides is it can build resentment for you in terms of if you're giving discounts and then you're feeling like you're not getting paid, what is really the value of your offer. Of course, that will mean you might be building up, building up resentment and that will have an impact on the relationship that you have with your clients." The Pricing Lady
"What you should do when a customer asks for discount or objects is simply just take a nice deep breath. This is going to help keep your cognitive brain in the driver's seat." The Pricing Lady
Links for this episode:
Here you'll find my Objections Handling Guide with Scripts