Powerful Advice from Warren Buffet and Seth Godin
Two very influential people have recently commented on the power of pricing. Warren Buffet said “The single most important decision in evaluating a business is pricing power” and Seth Godin said “the goal, no matter what you sell, is to be seen as irreplaceable, essential and priceless. If you are all three, then you have pricing power.”
Pricing professionals like me find it exciting to see pricing in the headlines. There have been plenty of casino online links and tweets about these articles but what does this have to do with consultants? From casino online my perspective, consultants are pricing professionals too. You may not think of yourself that way, but you probably set prices more often than most product managers!
Pricing power is rooted in delivering value. For consultants and small business owners, pricing power is relevant in two ways:
1. Regardless of your consulting specialty, you impact your clients’ power to price. You may help them create a higher quality product or service or deliver a better customer experience which is valuable to their customers.
2. The ability to increase your clients’ pricing power is your value. This value will give you the power to set higher prices.
If you focus on being irreplaceable and essential for your clients’ success, you will be providing value and perhaps even be seen as priceless.
Watch for my next post on relating price to value where I’ll provide clarity on how to get the highest price for your value.
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