Break out the pricing?

November 8, 2010 — 6 Comments

Imagine asking the car dealer to break out the pricing on spark plugs, steering wheel, etc.  And then ask them to walk through the process of assembly with you. Ridiculous?  However, we do it all the time with our customers.  The place were this is most concerning is on the consultancy side.

When you buy the car, you care about the car.  You want a car that runs, performs, fits with your lifestyle (I drive a FWD SUV outfitted with roof bike racks and packed with mountain bike tools, parts and clothing) and doesn’t break down.  The process doesn’t really matter; the overall cost must fit in the value budget you’ve set based on education.

So why are we walking through the steps and selling the method; the manufacturing process?  Sometimes this matters in explaining quality, but only the differentiators matter.  Focus on the result, not the process.  Focus on the value, not the price.  When people ask how long it will take, find out the required deadline.  The amount of time you spend should not be factored into their decision.  They need something, you have a solution, you can deliver…period.  Now, how much is this worth to their organization?

© 2010, David Stelzl

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6 responses to Break out the pricing?

  1. 

    Very well summarized…. considering today’s market dynamics it totally makes sense ..

  2. 

    The purchasing company should also consider this when going out for bids. Many times their own business processes require all that baggage. Understanding how to manage technology should extend far beyond the those with screw drivers. Unfortunately many technology leaders are where the are today because they could turn a screw driver faster than anyone else in the past.

  3. 

    Good point Brad – most RFPs are written by people who have no idea what they should be asking for. Companies that respond to them are doing the client a disservice…better to educate those up the chain on what thy really need to know before writing a response.

  4. 

    This really works! Don’t break the proposal into line items with prices. I have started including equipment, installation services, SALES TAX, 1st year service contract, etc. (no line item prices), listing all the items as a statement of work into one proposal with a single price listed as “Total Investment”

  5. 

    Joe – thanks for the feedback! Glad to see things are going well for you here…

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