Setting prices, or setting expectations, is always difficult. We feel that if its too high people won’t buy. I found a great formula in Seth Godin’s blog this week. That’s where I found a quote that I immediately tweeted out (giving him credit of course). Here is the quote:
“Charge enough that you can afford to actually keep your promise”
Have you ever looked at a product that was extremely low cost, yet promised to provide you with tremendous benefits? The first things that pop into your mind are; “there is no way this can do all of that”, or “how do they do that so cheap?”.
What are you promising for your product or service? If something goes wrong, how are you going to repair, replace, or recover? We don’t think about the hours upon hours we work behind the scenes getting the service ready. Have you calculated the costs of service afterwards?
Costs of Quality
In the manufacturing sector, there is a line item on most P&L’s called the cost of quality. That could be scrap, expedited freight charges, customer service claims, and a myriad of other things that are simply not planned for. The reason we pay these additional costs of quality, is to keep customers happy. Or just keep customers.
Are you delivering services? How do you measure your costs of quality? What things go wrong? Do you have hurdles after the sale is complete? Think about those when setting your prices. That is how you maintain focus on the promises you are giving your client.
At the Kole Performance Group we focus on keeping our promises, and doing whatever it takes to keep our clients happy. We are working hard today, to improve your tomorrow.
Live2Lead – 2018
The leadership event of the year is coming soon! This years speakers include; John Maxwell, Carly Fiorina, Daniel Pink, and Debra Searle … October 12th, simulcast live in Detroit / Ann Arbor area! Learn how to:
- Master the art of the shift with John Maxwell so you can increase your agility and keep your leadership edge.
- Apply Daniel Pink’s insights on the science of timing so you can make decisions faster for greater impact.
- Understand the value of change with Carly Fiorina so you can prepare your organization for its next great leap.
- Grasp the power of choice with Debra Searle so you can tap into the mindset of the most successful leaders in the world.