Anyone reading magazine covers and newspaper headlines has a pretty good idea that we are in unique economic times. At a recent talk, I posed the question “so in these economic times, what’s the most important factor for a decision?” “Price” was the resounding answer from most of the 70+ CEOs in attendance.
If you have a business that is trying to conserve its resources, is price the real issue? Would you want to save 10% if you were confident that the higher priced solution had a greater chance of success? Would you hire the “low bidder” as a consultant instead of hiring the one most likely to overcome your challenges and help you meet your goals? Let’s hope not.
Price matters when sales teams and management feel that price matters. And, if your offering lacks differentiation, then price can certainly matter to the customer. But, if your team has the confidence that your solution delivers better results, then that confidence can translate to higher margins. That confidence is important, but your client needs to realize the impact of their current problems.
If you invest the time to understand the clients issue, the relative impact of that issue on their business, and the ultimate importance of solving the problem, then you might help them realize an underlying value that goes beyond price.
It takes some effort, and requires discipline. But, if you can realize an additional 10% to 30% of margin, would you be willing to put in the time to deliver value that goes beyond price?