BRX Pro Tip: Price is a Story
Stone Payton : Welcome back to Business RadioX Pro Tips. Lee Kantor, Stone Payton here with you. Lee, let’s talk a little bit about pricing, pricing strategy, just the whole thing, man. That is – that’s something a lot of us have a challenge with in the professional services arena, I think.
Lee Kantor: Yeah, I think one of the thought leaders that have influenced me the most in the area of price and he says price is a story is Seth Godin. That’s one of my favorite quotes from him. And that’s absolutely true because just think about this.
Lee Kantor: You can go to Costco and buy a bottle of water for about a quarter. That same bottle of water would cost you about a dollar if you bought it at a farmer’s market. That same bottle of water would cost you about $3 if you bought it at a restaurant. That same bottle of water would cost you $4 if you bought it at a football game. And that same bottle of water would cost you about $5 if you bought it at the airport. Same product, different location, different occasion, different price. Nobody blinks at paying the same – for the same exact thing at a variety of prices.
Lee Kantor: So price is a story. It’s whatever you tell yourself it is, it is. Another one of my favorite marketers is Rory Sutherland. And he said that Rolls-Royce used to sell their cars at auto shows, and they were getting frustrated because whenever they went to an auto show, they were the most expensive car and nobody was buying what they were selling. So they stopped showing their cars at auto shows, and then they started showing them at airplane shows. So at the auto show, the Rolls-Royce is expensive, but at an airplane show, a Rolls-Royce is an impulse buy. It’s – the price is nothing compared to what these people are thinking about spending when it comes to an airplane.
Lee Kantor: So if you’re having a hard time raising your prices, maybe you’re hanging out in the wrong places and you’re comparing your services to the wrong things.
