Impact Pricing Podcast

#486: Pricing Table Topics: Joker 1 – An Indicator of Willingness to Pay

This one is the Joker 1 from the Selling Value card deck. 

You heard earlier that there are really three types of buyer’s value journeys. Those happen to be analytical, relationship, and trust. 

In the analytical relationship, there’s typically a lower level person who’s doing a lot of side by side comparison between your product and a competitor’s product, and our buyers are by far the most price sensitive in that situation.

Or we could go all the way to the trust journey, and that is where they come to us. They ask us, “Hey, what do you do? How do you help us solve our problems?” They never even look at a competitive alternative. And in that situation, they’re the least price sensitive.

“It’s really important that we understand which journey each buyer is on.”

– Mark Stiving

The relationship journey is the one in the middle, where people would come to us and say, “Hey, how do you help us solve our problem?” We guide them. They build a great relationship. They really like us. And then they say, “Yeah, but we have to go look at competitive alternatives.” We’ve built up enough goodwill and probably tweaked their thinking that we have the competitive advantage. And so, they’re not going to be as price sensitive as they would be if they were in a relationship journey. But they’re still more price sensitive than it was just a trust journey. 

So, you could think of these three different journeys (the analytical, relationship, and trust) is how our customers go learn about the value of our products. But at the same time, it’s how price sensitive are they going to be when it’s time to negotiate the price. It’s really important that we understand which journey each buyer is on.

We hope you enjoyed this example of Pricing Table Topics. What you just heard was done without a script. If you want to get better at speaking about pricing and value, grab a deck of our cards, pick a card, read the saying, and then talk for one to two minutes about what that card says. You’ll become a better speaker and expert.

If you have any questions or feedback, please email me, [email protected]

Now, go make an impact.

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Tags: Accelerate Your Subscription Business, ask a pricing expert, pricing metrics, pricing strategy

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