Setting the correct ‘sell-price’ is a critical decision for any product or service.
If the price is too high, it will negatively impact sales, costing the company valuable revenue and wasting leads and marketing dollars.
If the price is too low, it will negatively impact margin and limit growth opportunities.
The ‘sweet spot’ in pricing is achieved when the vendor believes they may have sold too cheaply and the purchaser thinks they may have paid about right or a little over.
How do you determine your optimum price?
Michael Field, Managing Director for Michael Field Pty Ltd.
As a consulting firm that specialises in strategy + implementation to achieve growth, we have the privilege of working with amazing companies led by incredibly driven and talented people.
When great leaders set ambitious growth targets, they acknowledge the scale of work that is in front of them. They don’t fall into the trap of thinking they will get there just because they believe it, or have good people or a good track record. Great leaders rigorously assess each part of the business and ‘pressure-test’ it to ensure it is fit for the task.
I recently sketched out some ‘thought starters’ for a session on business growth.
The growth strategy for this organisation included:
- Enabling their people to identify and scope additional opportunities within their existing clients
- Developing their team to cross-sell additional services to existing customers
- Unlocking the power of their extended network through business support and development tools such as CRM and LinkedIn
While not exhaustive, I hope you find the following list helpful in challenging your business to achieve its growth objectives.
Thought starters for a business development session:
- What behavioural changes will need to occur in our business, sales and account management practices to ensure we achieve our stated business objectives?
- How capable are our people at adapting to and integrating these changes into their daily practices
- How long is this likely to take?
- What support (both structural and behavioural) do we need to provide to efficiently and quickly affect the transition?
- What tools and processes are either impacted or required to affect the change
- What costs and risks does this present?
- How well equipped are we to implement and respond to the challenges?
- What knowledge do we need to acquire, what risks do we need to understand and what processes do we need to implement to engage with, understand and optimise business tools such as CRM and LinkedIn?
- How are we going to acquire the necessary knowledge, skills and processes to ensure success and minimise risk?
You may have some of your own questions to add to this list. I welcome your thoughts, feedback and suggestions.
Michael Field, Director at Michael Field Pty Ltd.