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Great pricing happens when we understand what a customer is willing to pay. But how much is any one customer willing to pay?
You could try to ask each buyer, but they don’t really know, they likely won’t tell the truth, and, most importantly, they don’t understand the true value of your product anyway. Optimal pricing relies on buyers understanding your value.
Value derives from solving problems and delivering results. This is exactly like storytelling.
The most common and popular storyline is called the hero’s journey. Here is how the story goes:
- The hero is living their life.
- Something happens to cause a problem.
- The problem gets worse.
- A guide or mentor enters the picture and helps the hero.
- The hero solves the problem.
- The hero gains recognition and/or rewards.
In the original Star Wars movie, Luke Skywalker is the hero and Yoda is the guide. When selling your product, your customer is the hero and you are the guide.
Now you’re wondering what this has to do with pricing. The value of your product is the value your buyers perceive when you solve their problems. The better you tell this story, the bigger the problem, the bigger the rewards, the bigger the value, and the more they are willing to pay.
Pricing is all about understanding the story. What problems do you solve? What results do you help your heroes achieve? When you know the answers to these questions, pricing (and selling) become much easier. This is what I love to do, guide you in your hero’s journey, while your product makes your buyers heroes. If you’d like help figuring out your story, contact me.
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Tags: pricing, pricing foundation, pricing skills, value
