May 19, 2025

Beyond Discounting: How to Command Premium Prices in Any Economy

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Season 1

In this value-packed episode, Michael Barbarita and Chuki Obiyo reveal why most businesses fall into the destructive trap of competing on price. You'll discover the counterintuitive "Value Elevation Framework" that enables businesses to command premium prices even in challenging economic times. Learn how to position your products and services so customers willingly pay more while competitors continue undercutting each other's prices in a race to the bottom.

Powerful Business Strategies is broadcast live Mondays at 12 Noon ET Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Powerful Business Strategies is viewed on Talk 4 TV (www.talk4tv.com).

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WEBVTT

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The topics and opinions expressed in the following show are

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solely those of the hosts and their guests and not

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those of W FOURCY Radio. It's employees are affiliates. We

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make no recommendations or endorsements for radio show programs, services,

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or products mentioned on air or on our web. No

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liability explicit or implies shall be extended to W four

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CY Radio or it's employees are affiliates. Any questions or

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comments should be directed to those show hosts. Thank you

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for choosing W FOURCY Radio.

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Welcome to Powerful Business Strategies, where you will find out

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that everything you have ever learned about growing your business

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is wrong. Finally, a show where you'll learn the right

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way to grow your business by learning business and financial

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strategies that your competition isn't doing. And now here's your host.

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President of NeXTSTEP CFO Michael Barbarita and joining Michael for

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today's show as an executive moderator is chooky obia.

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Yes, this is shookey and it is truly an honor

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for me to engage in today's episode with my good

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friend Michael.

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Michael, how are you excellent?

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Chicky?

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My name, my name as Chicky said, my name is

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Michael Baberriader Next Step CFO and Next Step CFO is

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a fractional CFO and strategic implementation firm. Business owners hire

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us to double and triple their profit using business and

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financial strategies that their competition isn't doing. And our vision

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is to ensure overwhelmed business owners achieve consistent profits that

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leads to time, freedom to build a legacy and the

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life they desire. And our mission is dedicated to guiding

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small business owners to leveraging their time, exploding their profits,

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and building a meaningful legacy. This show, Powerful Business Strategies

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in our book of the same name, is a step

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toward accomplishing that vision and mission. So with that, I'd

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like to hand it back to my co author and

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moderator for the show, Chicky Obio.

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Absolutely, Michael, thank you so for our longtime listeners. We

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switched up the intro just to touch folks. Remember gratitude

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is undefeated, but I wanted to just keep you on

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your toes. Gratitude is undefeated. Growth is always about the

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next step. So look, Michael and I were both affiliated

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with a number of different organizations. I currently serve as

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a managing director of business Development for Vetterprice, a global

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business focused law firm. In addition to that, as I

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said earlier, it's truly an honor to collaborate with Michael

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to moderate business roundtables and then document insights from these

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roundtables as part of our book, Powerful Business Strategies.

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So please note that the views expressed on.

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This show are our personal views based on those very

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successful experiences with business owners. My mission as a fearless

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moderator is to ask the right questions to help you,

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the listener, learn the best strategies that the competition isn't doing.

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With that, back over to Michael, thank you. Check. So,

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I want to share something right from the heart because

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I see it all the time. Many of you listening

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right now are undervaluing what you bring to the market.

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You've gotten caught in a trap of thinking that lower

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prices are the only way to compete. But I've seen

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firsthand time and time again how businesses improve when they

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break free from this mindset. Your expertise, your dedication, the

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value you create these are worth far more than you're

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currently charging. Today's episode isn't just about pricing strategies. It's

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about reclaiming your worth in the marketplace, because when you

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truly understand your value and learn to communicate it effectively,

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you'll be shocked at what customers are willing to pay.

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And it's time to stop leaving money on that table

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and stop commanding the premium prices that you deserve. So

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today we're tackling one of the most destructive myths in business,

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the idea that can heating on price is the best

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way to win customers. This myth is costing small business

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owners millions in lost profits every single year, and I

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see it time and time again in my work with

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business owners across dozens of industries. They're caught in this

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vicious cycle of discounting, watching their market margin shrink while

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they worked harder than ever. And what's most frustrating is

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that they usually have truly something invaluable to offer, but

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they're failing to communicate that value in a way that

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justifies premium prices. And here's an important insight about pricing.

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For a typical business, a one percent increase in price,

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assuming your volume stays the same and assuming you're an

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average business, can result in a three to four percent

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increase in operating profit. While so even this modest impact

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demonstrates how full price it could be compared to other

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profit improvement strategies. Yet most businesses are doing the exact opposite.

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They're cutting, cutting prices and watching their profits of apporing.

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But answer good news with the right approach, almost any

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business they command premium prices even in competitive markets, even

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during economic downturns. And today we're going to show you

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exactly how to do that with what I call the

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value elevation framework.

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Michael, Before we dive into that framework, you have to

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ask this question, why do you think so many business

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owners fall into the discounting fop in the first place.

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Yeah, Yeah, that's the super question. That's really super because

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that's the exact problem that we run into all the time.

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There are three primary reasons businesses get caught in the

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discounting trap. First, they've bought into the myth that customers

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primemarily buy on price. The reality is that price is

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really the most important factor in these purchasing decisions, and

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studies have consistently shown that customers rank factors like quality, reliability, convenience,

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and the customer experience overall way above price in importance.

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Yet businesses continue to act as their price is the

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only thing that customers care about. Secondly, many business owners

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don't know how to effectively communicate the value they provide.

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They're excellent at delivering their product or service, but they

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struggle to articulate why that product or service is worth

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a premium price, and they end up focusing on features

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rather than outcomes, on what they do rather than the

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value they create. You know, I said this at an

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earlier show. It's about matching your inside reality with the

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outside perception. The inside reality is is that you're providing

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all this value, but the outside perception is that you're

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just like everybody else. And that's about communicating your value.

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That's why this number two is so important. Third, there's

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a very real uh, there's a very human fear of rejection.

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Raising prices always feels risky. What if the customer says no,

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What if they go to another company? This fear keeps

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businesses stuck in pricing patterns that often established that are

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often established arbortrarily in the first place. And so let

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me share a quick example. So a commercial cleaning company

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was struggling to maintain profitability, and they were competing primarily

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on price, undercutting competitors to win contracts constantly, but this

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strategy was backfiring so much they were working harder than

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ever while watching their manchions strike to almost nothing. When

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they finally analyze their business, they discovered that they actually

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had several unique advantages. Their staff had significantly low eternal

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within industry averages, they used environmentally friendly cleaning products, and

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they had a proprietary quality control system that ensured consistent results.

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None of these advantages were being communicated to prospects. Instead,

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they were leading with price, effectively training customers to see

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commercial cleaning as a commodity where the lowest price wins.

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This is an example of where that inside reality did

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not match the outside perception, and this happens all the time.

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We completely, we completely changed their marketing to focus on

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the reliability and peace of mind that comes from having

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a stable cleaning crew who know the building, who know

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the reduced health risk from their toxic cleaning approach, and

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their quality guarantee and quality guarantee on top of it.

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That was very specific, by the way, and within six

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months they raised their prices by twenty two percent while

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increasing their client retention from sixty eight percent to ninety

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four percent and this example. Yeah, it's really huge. This

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example illustates that fundamental truth over that when you compete

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on price, you're essentially telling the market that you offered

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that your offer is no different from anyone else that

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offers the same thing. You're commoditizing yourself. Our value Evaluation

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framework helps you to do just the opposite. It helps

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you to Decommodit decommoditize your offerings so that you can

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charge what you're truly worth. So let's dive. Let's dive

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into the first component of the framework, and that's identifying

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and amplifying your true differentiators. Most businesses think they know

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what makes them different, but they usually focused on the

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wrong things entirely. Wow, So I briefly introduced our value

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Elevation framework, and it's a systematic approach to commanding, you know,

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premium prices in the marketplace. To keep you up here,

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the first component of this framework is what I call

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true differentiation discovery. Most businesses think they know what makes

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them different, but they typically focus on superficial differentiators like

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customers don't actually value or or are easily coffeed by competitors.

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So let me give you a quick example. I can

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tell you how many I can't tell you how many

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times I've heard business owners say things like we provide

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excellent customer service, we offer the highest quality, or we

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have twenty five years of experience with family owned These

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might all be true, but they're also what I call

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I hope so marketing things that customers already expect and

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that your competitors are likely claiming the same thing, and

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the customers saying them to themselves, well, I hope you

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have all that stuff. So true differentiation is it about

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being slightly better at that what everyone else does. It's

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about being meaningfully different in ways that manage your ideal customers.

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Here's the process for discovering your true differentiators. First, conduct

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what I call simply interviews with your best customers. These

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are easy to do, but you've got to do these

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things because it's the best way to get feedback directly

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from the horse's mouth. And these are traditional satisfaction surveys.

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Their in depth conversations focused on understanding the real value

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they receive from working with you. Ask questions like what

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problem or challenge were you facing that led you to

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work with us? Ask what would happen if we disappeared?

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To tomorrow, How would it impact you? And what do

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we do that you wish other vendors in your life

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would do? What more, what's something we do that surprised

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you in a positive way. So these questions reveal the

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hidden value you're already providing but not but may not

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be consciously promoting. By the way talking to a customer

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and asking those questions, it also helps create a position

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of market dominance for your business, watching a number of

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backshows that we have on that second, analyze your competitors

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through your customer's eyes. Don't just look at what competitives

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say about themselves, study how customers talk about them in reviews,

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social media, in forums. What frustrations do they express? What

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gaps exist between what competitives promise and what they deliver.

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These gaps represent prime opportunities, real good information for meaningful differentiation. Third,

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conduct what we call a process audit. This involves mapping

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out each step of your delivery process and identifying areas

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where you do things completely or do things differently from

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industry orbs. Often businesses that have unique approaches that they

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that they take for granted, but that could become powerful

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differentiators if properly highlighted and here's here's a quick example

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of that. So a residential home builder discovered through this

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process that, unlike their competitors, they had a dedicated project

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manager who stayed with clients from initial design all the

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way through final walkthrough. This was something they had always

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done but never ever emphasized in their marketing. I see

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this all the time. And when and when he repositioned

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this as their single point of accountability system, had explained

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how we eliminated the communication breakdowns common in home building,

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they were able to command a fifteen percent premium over

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their competitors.

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Wow, that is a fascinatinating Michael. But once you've identsified

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these true differentiators, how do you effectively communicate that the

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prospects to referral sources I mean, just say stakeholders, Michael,

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in a way that justifies that fremium price and that

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you're asking for.

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Well, that's exactly the right question, asked Chicky. Because identifying

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differentiators is actually only half the better. You also need

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to communicate them effectively. You know, this is what we

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did with the whole builder. This brings us to the

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second component of our frame, where called valiant translation value.

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Translation is the process of converting your differentiators into specific,

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measurable benefits that a day with prospects highest priorities. And

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here's how it works. First, each differentiator you've identified, ask yourself,

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so what, and keep asking so what until you arrive

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at benefits that connect directly to things your customers deeply

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care about, like saving time or reducing stress, or increasing

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security or enhancing status. Are making more money. For example,

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if you're differentiator is a proprietary quality control process, the

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so what might be fewer defects, But don't stop there.

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What the fewer defects mean to the customer. Perhaps it

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means fewer warranty claims. Maybe it means less downtime, or

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maybe higher customer satisfaction or reduced liability risks. These downstream

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impacts are where the real value lies. Second, quantify these

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benefits whenever possible. Specific numbers are always more compelling than

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general claim So instead of saying our system saves you time,

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which is kind of an I hope so statement, say

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our clients typically save seven and a half hours per week.

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Instead of our approaches our approach reduces costs. Say we

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help clients cut overhead by an average of twenty three percent.

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And if you don't have exact figures, use ranges or

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examples or comparisons to help prospects conceptualize that value. And

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the key is moving from big claims to concrete benefits. Third,

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translate these benefits into compelling language that becomes your value narrative.

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This isn't about clever copywriting. It's about clearly articulating the

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unique value you deliver in terms that resonate with your

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ideal customer. So let me share a quick example. So,

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an IT services company was struggling to differentiate itself in

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a crowded market, and through this discovery process, they found

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that while competitives focused on reactive problem solving, this company

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had developed a proactive monitoring system that prevented problems before

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they occurred. And the key was translating this technical differentiator

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into business value. And they calculated that the average IT

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outage cost their typical client thirty two hundred dollars an

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hour in loss productivity and lost time, and this system

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prevented an average of three point seven outages per year

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with a typical duration of four point two and this

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meant that their approach was actually saving clients almost fifty

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grand in avoided downtime costs. And when they began leading

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with this narrative of value narrative, a proprietary monitoring system

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saves the average midsized business forty nine grand annually had

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prevented downtown prospective. Maybe of the unders of the value

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of the proposition. The company was able to increase their

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monthly service fees by thirty five percent while improving their

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closing rate. So, once again, this demonstrates our critical truth

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that customers don't pay for what you do. They pay

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for the outcomes that you deliver. Your job is to

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make those outcomes crystal clear and connect them directly to

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the things that your ideal customers value the most.

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Michael, So we do have a question from a listener.

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In fact, we'll go with this one. It's a good one.

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So the key is translating what makes you different into

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specific measurable value for the customers.

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That correct, right, Michael, yep, that's fine.

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Right, So how do you identify which customers are most

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likely to value your differentiators and then be willing to

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pay the premium process for that?

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Yeah, you know, that's great, that's a great quest. Well,

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that leads perfectly into the third component of the framework,

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which is value based customers selection. So one of the

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biggest forsakes businesses make is trying to appeal to everyone,

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and the reality is that some customers are naturally more

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price sensitive than others, and some will value your specific

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differentiators more highly than others. But the key to commanding

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premium prices is focusing your efforts on what I call

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value buyers. These are customers who priorit types outcomes over price,

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and who specifically value the unique benefits that you provide.

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So here's how to identify and attract these value buyers. First,

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analyze your current customer base and identify which customers are

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the most profitable and cause by the way, that stay

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with you the longest and cause the fewer headaches and

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so look for patterns in these customers characteristics, behaviors, and priorities.

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And second, develop detailed profiles of your ideal value buyers,

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almost like your customer avatar, if you will, but go

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beyond basic demographics to understand their psychographics such as attitudes, aspirations, fears,

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and priorities. What keeps them up at night, what are

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they trying to achieve, and what do they value most. Third,

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refine your marketing message to speak directly to these value

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buyers using language that resonates with their specific outcomes and

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pain points. When you're interviewing them, pick up the exact

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words they're saying. And remember the goal is to appeal

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to everyone. It's to strongly appeal to those who most

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likely value what makes you unique. Here's an example. So

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a financial advisory firm of discuss with their most profitable

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clients weren't necessarily the wealthiest. They were business owners who

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were built successful companies so we're preparing for eventual exit.

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These clients valued the firm's expertise with business transitions far

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more than general investment management, and so by refocusing their

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marketing specifically on this niche, using language and case studies

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that spoke directly to the unique challenges of businesses that

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have exits, they were able to attract more ideal clients,

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increase their minimum portfolio size by two hudred and fifty

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percent and eighteen months.

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That's a powerful example, Michael, And what I just really

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resonate with in that example is how focusing on the

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right customers can actually transform your pricing power. So to

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wrap up this segment, what are two key action items

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that you would recommend business owners take right away?

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Well, the first action item is to schedule five exit

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interviews with your best current customers in the next two weeks,

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and remember to ask questions that uncover the real value

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they receive from working with you, not just you know

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what they like about your service. Questions like what would

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happen if we disappear tomorrow? And what do we do

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that you wish other vendors would do often reveals surprising insight.

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And then the second action item is to conduct a

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competitor analysis, but with a twist, So instead of just

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looking at competitors' websites or marketing materials, read the reviews,

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both good and bad, and social media commentary to identify

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the gaps between what they promise and what customers actually experience.

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These gaps represent prime opportunities for meaningful debt differentiation. So

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in our next segment, we're going to explore how to

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structure your offerings to maximize perceived value and make premium

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pricing feel natural and justify to prospects. So before we continue,

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let's take a ninety second break. Hey there, business owners,

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let me ask you something. Are you tied of blending

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00:23:07.920 --> 00:23:12.279
in with your competitors, frustrated with slow growth and slim margins.

336
00:23:12.440 --> 00:23:15.640
Well I've got news for you. Everything you've ever learned

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00:23:15.680 --> 00:23:20.200
about growing your business is wrong. But don't worry. I'm

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00:23:20.240 --> 00:23:22.559
here to let you in on a secret weapon, your

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00:23:22.640 --> 00:23:26.319
position of market dominance. It's what sets you apart, makes

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you irreplaceable, and has customers lining up at your door.

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My name is Michael Barbarrita from Next Step CFO. I

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know what you're thinking. Sounds great, Michael, but how do

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I find my position of market dominance? Well, that's exactly

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why we've created our game changing impleitation program called Next

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00:23:45.319 --> 00:23:48.799
Step to Market Dominance. In just ninety days, we'll guide

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00:23:48.839 --> 00:23:51.319
you step by step to a position of market dominance

347
00:23:51.559 --> 00:23:55.319
by uncovering your unique strengths that competitors can't touch, by

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00:23:55.359 --> 00:23:58.640
crafting a message that resonates deeply with your ideal customer,

349
00:23:58.960 --> 00:24:01.599
by building a strat that turns you into the go

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00:24:01.680 --> 00:24:05.160
to expert in your field. Now this is in theory.

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These are battle testing strategies that have held businesses like

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00:24:08.319 --> 00:24:13.119
yours double triple and quadruple their revenue. Don't let another

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00:24:13.200 --> 00:24:16.519
quarter go by struggling to standout. It's time to dominate

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00:24:16.559 --> 00:24:22.240
your market period. Go to NEXTSTEPCFO dot net forward slash contact.

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00:24:22.720 --> 00:24:25.519
Fill out the form and in the message section put

356
00:24:25.559 --> 00:24:29.279
the word dominate or call us at seven eight one

357
00:24:29.640 --> 00:24:33.000
three two six three A two two. That's next step

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00:24:33.079 --> 00:24:36.720
CFO dot net forward slash contact or call us at

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00:24:36.759 --> 00:24:40.079
seven eight one three two six three A two two.

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00:24:41.200 --> 00:24:43.839
Welcome back to Powerful Business Strategies. And I remember you

361
00:24:43.839 --> 00:24:47.279
can go to our website, Powerful Business Strategies dot com

362
00:24:47.559 --> 00:24:49.920
to catch any episode that you might miss or if

363
00:24:49.960 --> 00:24:52.839
you're driving uh and you want to actually go back

364
00:24:52.880 --> 00:24:55.279
and listen and take notes, you could do so by

365
00:24:55.279 --> 00:24:58.640
going to Powerful Business Strategies dot com. So the book

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before the break we discussed to discover your true differentiators,

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translate them into compelling value narratives, and identify customers who

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value your unique benefits most highly. And now let's talk

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about that fourth component of our value elevation framework called

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strategic offering architecture. How you structure and present your offerings

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has a profound impact on the perceived value and pricing power.

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Most businesses make the critical mistake by presenting their offerings

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in ways that naturally lead to price comparisons. They list

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features and specifications side by side with competitors and essentially

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creating commodities style comparison. Shopping the key to commanding premium

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prices and structuring your offers in a way that makes

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direct price comparison it's difficult or irrelevant, and there are

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four ways to do this. First, create proprietary packages that

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combine products and services and experiences in unique ways. So

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instead of selling the same generic offering as competitors, developed

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some bundling and packaging that solved the specific customer problems

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more comprehensively. If you recall, this is one of the

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components of a compelling offer that we talked about in

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our Compelling Offer episode. So here's an example. Like a

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wedding photographer stopped selling standard hourly packages and created three

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distinctive collections. One was to call the Complete Story, which

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was comprehensive documentation from preparation to reception. The second was

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called Timeless Moments, which focused on autistic portraits and key

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ceremony moments. Third was Family Legacy and that emphasized multi

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generational family documentation. These packages made direct price comparisons with

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competitors essentially impossible for any type of comparison whatsoever because

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they weren't selling the same thing. Second, develop a proprietary

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process or methodology that becomes part of what customers are buying.

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This approach just changes a game with your offerings from

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a commander commoditized service to a unique system that only

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you provide. So, for example, a marketing agency name their

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client onboarding process the deep Dive Discovery, and their campaign

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development approach was called the Renaissance method. They documented each

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step of these processes and included detailed explanations in their proposals,

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and this civil shift reposition from being just another marketing agency.

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They're having a unique methodology that justified premium pricing. Third,

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00:27:47.720 --> 00:27:53.599
implement tea in pricing with strategic anchor points. When you

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offer multiple service levels, you change the conversation from a

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yes or no to which one you know. Research consistently

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00:28:02.799 --> 00:28:07.039
shows that presenting three options with your preferred option in

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the middle significantly increases average transaction value, and that is

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why many successful companies use a good, better, best model.

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So the key is differential designing your top tier to

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be ambitious in both value and price, and this creates

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an anchor point that makes your middle tier seem reasonable

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by comparison, even if few clients choose the top tier.

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Its presence elevates the perceived value of your other offerings.

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And fourth, consider shifting to outcome based pricing models. We're appropriate.

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So when you price based on results rather than inputs

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like time of materials, you align your compensation directly with

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the value you create. Everybody get tongue up with time

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and materials and all types of measurements forget it value.

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This approach could be significant for businesses that constant consistently

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deliver strong outcomes. For example, a digital marketing for a

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move from charging monthly retainers to a base feed plus

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performance incentives tied to lead generation and this this shift

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dramatically increase their prices for successful campaigns while demonstrating confidence

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in their capabilities.

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Michael, I love the idea of creating unique packages that

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make direct price comparisons difficult.

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So good.

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Many businesses might worry that if they price significantly higher

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than their competitors, they'll lose business.

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How do you address that fear of raising prices? Yeah,

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that's the key to the Kingdom. I think two key

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in it. It leads perfectly into our fifth component of

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our framework, and that's risk reversal strategies. See, the fear

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of raising prices is fundamentally a fear of rejection. What

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if testomers say no? This fair is legitimate, but can

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be addressed through strategic risk reversals that shifts the risk

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of the transaction from the buyer to the seller. We

437
00:30:10.960 --> 00:30:13.720
have a whole show on this, and when you charge

438
00:30:13.759 --> 00:30:20.359
premium prices, customers naturally have higher expectations and greater concerns

439
00:30:20.400 --> 00:30:24.400
about making a mistake. Your job is to systematically eliminate

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these concerns by demonstrating confidence in your value. And here

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are three powerful risk reversal strategies. First, offer results based

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guarantees that promise specific outcomes rather than merely satisfaction. For example,

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instead of a generic satisfaction guarantee, a digital marketing company

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for might guarantee a minimum of twenty five qualified leads

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in the first ninety days, and we'll continue working at

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no additional costs until we deliver them. Now, these performance

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guarantees demonstrate confidence in your ability to deliver value, the

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00:31:00.279 --> 00:31:04.680
perching decision less risky for the customer, and they also

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shift the conversation for price outcomes which is exactly where

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you wanted. Second, provide proof of concept options that allow

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prospects to experience your value firsthand before committing to a

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larger engagement. And this might be a paid assessment, a

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trial period, or maybe even a scale down initial project.

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For example, a business consultant who created a strategic roadmap

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session as an entry point for new clients. This two

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day in intensive session delivered immediate value while showcasing the

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consultant's expertise and approached so over eighty percent of clients

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who who experienced this session went on to engage in

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comprehensive consulting relationships. And Third, new social proof strategically to

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build credibility and reduce perceived risk. This goes beyond generic

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testimonials to include detailed case studies, specific metrics from client results,

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and testimonials that directly address common objections. For example, if

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00:32:14.519 --> 00:32:20.759
prospects typically worry about implementation challenges, include testimonials as specifically

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mentioned how smooth the implementation process was, and if they're

465
00:32:25.039 --> 00:32:31.519
concerned about ROI, showcase detailed before and after metrics from

466
00:32:31.599 --> 00:32:36.599
similar clients. These risk reversal strategies create a powerful foundation

467
00:32:38.079 --> 00:32:42.319
for premium pricing by addressing the fundamental concerns that make

468
00:32:42.480 --> 00:32:47.920
prospects hesitate when considering higher priced options. And I'll share

469
00:32:48.160 --> 00:32:54.279
a quick success story a custom home builder. A customer

470
00:32:54.279 --> 00:32:57.240
home builder client implemented these strategies that raise their prices

471
00:32:57.279 --> 00:33:00.400
by thirty four percent while increasing their close rate twenty

472
00:33:00.400 --> 00:33:06.880
two percent to forty one percent. Closing often a phased approach,

473
00:33:06.960 --> 00:33:10.920
beginning with a paid design consultation. They provide a detailed

474
00:33:10.960 --> 00:33:13.799
case study showing the long term value or quality construction,

475
00:33:14.279 --> 00:33:19.720
and often a comprehensive warranty that far exceeded industry standards

476
00:33:19.759 --> 00:33:23.319
and was specific. The combination of these risk for versal

477
00:33:23.359 --> 00:33:27.359
strategies make their premium pricing feel like the safer choice,

478
00:33:27.720 --> 00:33:28.920
not the risky one.

479
00:33:29.920 --> 00:33:33.400
Michael, you are connecting some really important dots here for

480
00:33:33.519 --> 00:33:37.799
business owners. So let's take a question from the listener.

481
00:33:38.920 --> 00:33:41.599
And there's also something candidly that I'm curious about. So

482
00:33:42.519 --> 00:33:46.400
you talked about how to set and justify premium pricing,

483
00:33:47.119 --> 00:33:52.559
but what about communicating these premium prices effectively?

484
00:33:54.039 --> 00:33:57.519
Well, Choky, that listener identify a critical piece of a puzzle.

485
00:33:58.480 --> 00:34:02.599
The six component of our work addresses exactly that challenge.

486
00:34:02.920 --> 00:34:08.000
Value centric price presentation. Many businesses undermining their pricing power

487
00:34:08.039 --> 00:34:12.400
through poor price presentation. They apologize for their prices, present

488
00:34:12.480 --> 00:34:16.679
them tentatively, or introduce them before establishing full value. These

489
00:34:16.719 --> 00:34:20.840
approaches practically invite price objections and negotiations, So there are

490
00:34:20.840 --> 00:34:25.719
four key principles for presenting prices with confidence. First, established

491
00:34:25.800 --> 00:34:33.039
comprehensive value before revealing outcomes. Walk prospects through all the benefits, outcomes,

492
00:34:33.079 --> 00:34:38.400
and differentiators that they'll receive before discussing investment. This creates

493
00:34:38.440 --> 00:34:43.760
a context of value that frames the price appropriately. Second,

494
00:34:43.920 --> 00:34:49.239
use value based language when discussing pricing. Replace cost focused

495
00:34:49.360 --> 00:34:53.639
terms like price, cost or expense with value oriented terms

496
00:34:53.880 --> 00:34:59.559
like investment value or returns. This little subtle shift reinforces

497
00:34:59.800 --> 00:35:04.320
that they're buying outcomes, not just paying for services. Third,

498
00:35:04.960 --> 00:35:10.400
present pricing with absolute confidence. Your tone, body language, and

499
00:35:10.519 --> 00:35:14.119
word choice should convey complete conviction in your value. Never

500
00:35:14.199 --> 00:35:19.679
apologize for premium pricing or suggest flexibility before the prospect

501
00:35:19.840 --> 00:35:23.199
has even responded, and you could say things like the

502
00:35:23.280 --> 00:35:29.360
investment is only x, whops that weren't only four. Anticipate

503
00:35:29.679 --> 00:35:33.760
value based answers to price objections when prospects say that

504
00:35:33.760 --> 00:35:37.119
that's more than we budgeted, be prepared with responses that

505
00:35:37.199 --> 00:35:41.599
focus on value, not justifications for your pricing. For example,

506
00:35:41.719 --> 00:35:45.559
I understand many of our clients initially thought the same

507
00:35:45.679 --> 00:35:51.440
thing until they experience the ROI our approach delivers the client.

508
00:35:51.519 --> 00:35:54.239
The average client seeds a three point two time return

509
00:35:54.800 --> 00:35:59.360
on this investment within twelve months. Notice many of our

510
00:35:59.400 --> 00:36:03.960
clients initially thought the same thing, So let me share

511
00:36:04.000 --> 00:36:10.239
a quick example. An IT implementation from was consistently getting

512
00:36:10.519 --> 00:36:15.280
pushback on their project fees despite delivering excellent results. When

513
00:36:15.320 --> 00:36:18.159
we analyzed their sales process, we discovered that they were

514
00:36:18.159 --> 00:36:22.719
presenting prices early in conversations, often in response to direct

515
00:36:22.800 --> 00:36:26.760
questions from prospects. We restructured their approach to first establish

516
00:36:26.840 --> 00:36:31.320
the cost of the problem implementation failures, system downtime, security

517
00:36:31.400 --> 00:36:37.920
vulnerabilities before presenting their solution and associated investment. By establishing

518
00:36:37.960 --> 00:36:41.880
that the average failed implementation costed their typical client two

519
00:36:42.000 --> 00:36:45.679
hundred and seventeen K in direct and indirect costs, their

520
00:36:45.719 --> 00:36:49.639
own fees from seventy five to ninety five K suddenly

521
00:36:49.679 --> 00:36:56.159
seemed reasonable and even prudent. And additionally, they learned to

522
00:36:56.320 --> 00:37:01.119
present these fees confidently as your investment rather than apologetically

523
00:37:01.199 --> 00:37:05.639
as our fee. Within three months, price objections decreased by

524
00:37:05.679 --> 00:37:09.079
fifty eight percent, and their and the average their average

525
00:37:09.239 --> 00:37:13.599
project value increased by twenty two percent. Michael.

526
00:37:13.639 --> 00:37:14.800
One of the things that you do a really good

527
00:37:14.840 --> 00:37:17.679
job with these examples, and I hope our listeners are

528
00:37:17.719 --> 00:37:20.119
taking cues and I think they are, is to provide

529
00:37:20.119 --> 00:37:23.079
the specific impact of the results, right, you know, going

530
00:37:23.159 --> 00:37:26.719
from you know, price subjections decreasing, you know, from you

531
00:37:26.920 --> 00:37:29.119
by fifty eight percent for example, it's very specific.

532
00:37:29.239 --> 00:37:30.840
So here's something.

533
00:37:30.639 --> 00:37:33.679
That's even just more fascinating to me at least, I

534
00:37:33.679 --> 00:37:37.239
mean just the language, right, So it's fascinating how much

535
00:37:37.280 --> 00:37:42.039
the language and timing around pricing conversations impact the perception.

536
00:37:42.719 --> 00:37:44.639
So to wrop up this segment, Michael, what are two

537
00:37:44.719 --> 00:37:48.159
key action items that business owners should implement right away?

538
00:37:49.119 --> 00:37:52.320
Well, the first action is to restructure your offerings into

539
00:37:52.360 --> 00:37:56.400
proprietary packages with names that highlight your unique approach or methodology.

540
00:37:56.880 --> 00:38:00.559
Great at least three package levels. Remember a good, better,

541
00:38:00.599 --> 00:38:03.280
best scenario that we talked about. The second action item

542
00:38:03.639 --> 00:38:06.400
is to develop at least one powerful risk reversal in

543
00:38:06.440 --> 00:38:09.480
the next thirty days. This could be a results base guarantee,

544
00:38:09.679 --> 00:38:13.079
a proof of concept option or a compelling case study

545
00:38:13.480 --> 00:38:18.840
that showcases specific, measurable results for clients similar to your

546
00:38:18.840 --> 00:38:22.719
target prospect. Remember, risk reversals is about shifting the risk

547
00:38:22.760 --> 00:38:26.320
from the buyer to the seller to build confidence in

548
00:38:26.400 --> 00:38:30.000
your premium pricing. In our next segment, we'll discuss how

549
00:38:30.000 --> 00:38:33.800
to implement these strategies effectively address potential challenges and create

550
00:38:33.840 --> 00:38:37.400
a culture of value within your organization. So before I

551
00:38:37.440 --> 00:38:41.639
continue this discussion, we're going to take a ninety second break. Hey,

552
00:38:41.679 --> 00:38:44.159
their business owners, let me ask you something. Are you

553
00:38:44.280 --> 00:38:48.039
tied of blending in with your competitors, frustrated with slow

554
00:38:48.079 --> 00:38:51.119
growth and slim margins? Well, I've got news for you.

555
00:38:51.920 --> 00:38:55.400
Everything you've ever learned about growing your business is wrong.

556
00:38:56.119 --> 00:38:58.400
But don't worry. I'm here to let you in on

557
00:38:58.440 --> 00:39:02.800
a secret weapon position of market dominance. It's what sets

558
00:39:02.840 --> 00:39:06.679
you apart, makes you irreplaceable, and has customers lining up

559
00:39:06.679 --> 00:39:10.000
at your door. My name is Michael Barbarrita from Next

560
00:39:10.000 --> 00:39:14.320
Step CFO. I know what you're thinking. Sounds great, Michael,

561
00:39:14.559 --> 00:39:18.159
But how do I find my position of market dominance? Well,

562
00:39:18.199 --> 00:39:21.840
that's exactly why we've created our game changing impleitation program

563
00:39:22.000 --> 00:39:25.719
called next step to market dominance in just ninety days.

564
00:39:25.719 --> 00:39:27.800
Will guide you step by step to a position of

565
00:39:27.840 --> 00:39:32.199
market dominance by uncovering your unique strengths that competitors can't touch.

566
00:39:32.519 --> 00:39:36.000
By crafting a message that resonates deeply with your ideal customer,

567
00:39:36.320 --> 00:39:38.960
by building a strategy that turns you into the go

568
00:39:39.039 --> 00:39:42.480
to expert in your field. Now this is in theory.

569
00:39:42.639 --> 00:39:45.440
These are battle tests and strategies that have helped businesses

570
00:39:45.519 --> 00:39:49.920
like you as double, triple, and quadruple their revenue. Don't

571
00:39:49.960 --> 00:39:53.119
let another quarter go by struggling to standout. It's time

572
00:39:53.199 --> 00:39:58.280
to dominate your market period. Go to NEXTSTEPCFO dot net

573
00:39:58.320 --> 00:40:01.639
forward slash contact. Fill out the form and in the

574
00:40:01.679 --> 00:40:05.840
message section put the word dominate or call us at

575
00:40:05.880 --> 00:40:09.159
seven eight one three two six three A two two.

576
00:40:09.559 --> 00:40:13.280
That's next step CFO dot net forward slash contact or

577
00:40:13.360 --> 00:40:16.760
call us at seven eight one three two six three

578
00:40:16.800 --> 00:40:20.800
A two two. Welcome back to powerful business strategies. So

579
00:40:20.800 --> 00:40:25.079
somebi we've covered discovering your truth differentiators, translating them into

580
00:40:25.599 --> 00:40:30.400
valuable benefits, selecting ideal customer, structuring compelling offers, implementing risk

581
00:40:30.440 --> 00:40:36.639
reversal strategies, and presenting prices effectively. Now, let's discuss the

582
00:40:36.679 --> 00:40:41.159
final component of our value elevation framework, and that's internal

583
00:40:41.719 --> 00:40:46.320
value alignment. And this critical element ensures that your entire

584
00:40:46.440 --> 00:40:53.039
organization consistently supports and reinforces your premium pricing strategy. Now,

585
00:40:53.039 --> 00:40:57.000
many businesses implement new pricing approaches only to have them

586
00:40:57.079 --> 00:41:00.639
under undermined by team members who just than a stand

587
00:41:00.679 --> 00:41:03.360
or believe in the value being delivered. And your team

588
00:41:03.400 --> 00:41:07.639
must be completely aligned around your value proposition and confident

589
00:41:07.679 --> 00:41:10.320
in your pricing strategy. So here are three key steps

590
00:41:10.360 --> 00:41:15.360
to creating this alignment. First, educate your team on the

591
00:41:15.400 --> 00:41:19.000
full value you deliver. Many team members, especially those who

592
00:41:19.480 --> 00:41:23.079
are not directly involved in sales, don't fully understand the

593
00:41:23.119 --> 00:41:28.320
outcomes customers receive or why they choose your business over alternatives.

594
00:41:29.039 --> 00:41:32.719
Share customer success stories, testimonials, and case studies with your

595
00:41:32.719 --> 00:41:36.840
team regularly, so that's a sink in. For example, a

596
00:41:36.920 --> 00:41:40.760
manufacturing company began their monthly all hands meeting with a

597
00:41:40.840 --> 00:41:44.880
customer impact spotlight where they shared specific examples of how

598
00:41:44.920 --> 00:41:48.159
their product made a meaningful difference for a customer. And

599
00:41:48.199 --> 00:41:51.119
these stories build pride among the team members and reinforced

600
00:41:51.159 --> 00:41:56.159
the real value that they were creating daily. Second involved

601
00:41:56.159 --> 00:42:00.960
team members in identifying and enhancing value. People closest to

602
00:42:01.039 --> 00:42:05.280
customers often have the best insights into the what customers

603
00:42:05.320 --> 00:42:09.280
truly value, yet many businesses never tap this knowledge. Create

604
00:42:09.440 --> 00:42:13.800
structured opportunities for team members to share these insights and

605
00:42:13.880 --> 00:42:19.440
suggest ways to increase value. And the third align compensation

606
00:42:19.559 --> 00:42:23.239
with value creation rather than cost reduction or volume. When

607
00:42:23.280 --> 00:42:27.320
team members are rewarded primarily for cutting costs or increasing volume,

608
00:42:27.559 --> 00:42:30.800
they'll naturally focus on those metrics, and sometimes at the

609
00:42:30.800 --> 00:42:37.119
expense of value creation. Consider implementing bonuses tied to customer outcomes, retention,

610
00:42:37.320 --> 00:42:42.559
customer retention, or other value based metrics. For instance, a

611
00:42:42.599 --> 00:42:46.840
professional services firm restructure the bonus system to include client

612
00:42:46.920 --> 00:42:51.400
retention and expansion metrics alongside traditional production targets, and this

613
00:42:51.480 --> 00:42:56.960
shift encouraged professionals to focus on delivering ongoing value rather

614
00:42:57.000 --> 00:43:04.239
than just billable hours. Supporting the first premium pricing strategy.

615
00:43:03.639 --> 00:43:07.400
Michael, those are excellent points about internal alignments, and you

616
00:43:07.440 --> 00:43:10.280
and I we've seen businesses where the sales team is

617
00:43:10.480 --> 00:43:16.320
trying to justify premium prices while operations is cutting cordinators

618
00:43:16.519 --> 00:43:18.960
to reduce costs. I mean sort of that constructive tension

619
00:43:19.519 --> 00:43:22.840
that sometimes it's not so constructive, right, But what about

620
00:43:22.920 --> 00:43:26.679
managing this shift with existing customers, Like, how do you

621
00:43:26.840 --> 00:43:30.840
raise prices without losing valuable clients?

622
00:43:31.800 --> 00:43:36.000
That's a critical that's a critical question. If we'rementing premium

623
00:43:36.039 --> 00:43:40.760
pricing strategies with new prospects, it's relatively straightforward, but transitioning

624
00:43:41.360 --> 00:43:45.480
existing customers requires a more nuanced approach. Here are four

625
00:43:45.519 --> 00:43:51.480
strategies for effectively raising prices with current customers. First, improve

626
00:43:51.719 --> 00:43:57.000
your improve before you increase. So the four raising prices

627
00:43:57.320 --> 00:44:01.559
identify ways to enhance the value you provide, or give

628
00:44:01.559 --> 00:44:03.840
them a little history lesson on the value you provide.

629
00:44:04.519 --> 00:44:11.400
This might involve adding services, improving processes, or providing additional resources.

630
00:44:11.400 --> 00:44:16.000
When the price increase follows visible value enhancement, customers are

631
00:44:16.239 --> 00:44:23.039
far more likely to accept it. Secondly, segment your approach

632
00:44:23.119 --> 00:44:27.320
based on customer value and price sensitivity. Not all customers

633
00:44:27.320 --> 00:44:31.920
should receive the same increase or the same communication. Consider

634
00:44:32.039 --> 00:44:38.599
factors like longevity, profitability, growth potential, and strategic value when

635
00:44:38.679 --> 00:44:46.760
determining increased prices and approaches. Third, communicate increases in value

636
00:44:47.000 --> 00:44:50.320
in terms of value, not cost. So many businesses justify

637
00:44:50.360 --> 00:44:54.440
price increases by citing a rising costs Well, this approach

638
00:44:55.400 --> 00:45:00.119
inevitably positions price as a burden rather than reflect and

639
00:45:00.199 --> 00:45:04.360
of value. So instead of instead frame increases in terms

640
00:45:04.400 --> 00:45:08.440
of ongoing enhance value that customers received, for instance, rather

641
00:45:08.519 --> 00:45:12.400
than saying we're raising prices due to increased operating costs,

642
00:45:12.400 --> 00:45:14.760
which I see all the time, by the way, saying

643
00:45:15.280 --> 00:45:18.320
our enhanced service platform now provides you with twenty four

644
00:45:18.320 --> 00:45:22.079
to seven access and faster response times, reflecting our continued

645
00:45:22.119 --> 00:45:26.039
investment in delivering exceptional results for your business, just a

646
00:45:26.159 --> 00:45:33.599
total different way to deliver. And then, fourth, consider grandfathering strategically.

647
00:45:33.639 --> 00:45:37.079
In some cases, it makes sense to maintain current pricing

648
00:45:37.119 --> 00:45:42.119
for existing customers while implementing new pricing for new customers.

649
00:45:42.360 --> 00:45:45.320
And this approach honors the loyalty of long term clients

650
00:45:45.639 --> 00:45:51.159
while gradually transitioning your business to more profitable pricing. I

651
00:45:51.199 --> 00:45:55.800
will be careful. Don't want to create permanent pricing disparities

652
00:45:55.840 --> 00:45:59.880
that become difficult to manage. Consider time limited grandfathering or

653
00:46:00.360 --> 00:46:06.800
based increases that eventually bring all customers to appropriate pricing levels.

654
00:46:07.199 --> 00:46:09.360
And you know what, check, I didn't think we had

655
00:46:09.400 --> 00:46:12.559
time for compliments, but I think we do brilliant.

656
00:46:12.639 --> 00:46:15.800
Yeah, so it's great that we have time for compliments.

657
00:46:15.800 --> 00:46:19.480
And Michael, there are three compliments. Effectively, these are business

658
00:46:20.159 --> 00:46:24.000
owners spotlights that we dedicate our time to. So first

659
00:46:25.079 --> 00:46:31.679
carry climates and she is with Great Partnership Solutions. Great

660
00:46:31.719 --> 00:46:36.239
Partnership Solutions empowers growth minded professionals and visionary leaders with

661
00:46:36.320 --> 00:46:42.440
the leadership development, practical skills, and confidence to achieve purposeful results.

662
00:46:43.000 --> 00:46:46.840
Through personalized coaching, interactive workshops, and hands.

663
00:46:46.559 --> 00:46:48.960
On support, they help to bridge that.

664
00:46:48.880 --> 00:46:50.719
Gap between intention and action.

665
00:46:53.159 --> 00:46:55.440
Next. Gary phil Weber.

666
00:46:56.320 --> 00:46:59.840
Gary phil Webber is a seasoned insurance expert with over

667
00:47:00.159 --> 00:47:04.119
two decades of experience, and he has built a reputation

668
00:47:04.280 --> 00:47:09.360
for delivering tailored solutions that empower individuals and small businesses

669
00:47:09.400 --> 00:47:10.400
to achieve.

670
00:47:10.039 --> 00:47:11.039
Their financial goals.

671
00:47:11.079 --> 00:47:13.320
I mean, Michael, that's something you and I know quite

672
00:47:13.320 --> 00:47:17.920
a bit about, right, helping business goals. As a retirement

673
00:47:18.079 --> 00:47:23.800
specialist at Property Insurance Benefits, he crafts comprehensive plans that

674
00:47:23.960 --> 00:47:30.280
enable clients to retire on their own terms. Leverage his

675
00:47:30.920 --> 00:47:37.719
extensive experience and knowledge in health insurance, in Medicare and

676
00:47:37.760 --> 00:47:41.480
in Medicaid, so effectively, clients get access his proven track

677
00:47:41.519 --> 00:47:45.440
record of success and Garretts truly established himself as a

678
00:47:45.480 --> 00:47:47.039
trusted authority.

679
00:47:46.559 --> 00:47:49.159
In the industry. And you could connect with Gary on

680
00:47:49.559 --> 00:47:50.239
linked In.

681
00:47:51.119 --> 00:47:54.159
And then last but not LEAs is Casey Hamilton Casey

682
00:47:54.360 --> 00:48:02.159
is with Exact Match Marketing. This is a really intriguing

683
00:48:02.320 --> 00:48:04.880
organization and operation. Right. What they do is they help

684
00:48:04.960 --> 00:48:12.480
agencies double their MRR without spending money. And get this,

685
00:48:12.599 --> 00:48:15.320
you've got to be ready to really thrive in what

686
00:48:15.360 --> 00:48:19.800
they call a cookie less future. You can empower your

687
00:48:19.840 --> 00:48:24.960
marketing and engage with clients in real time with their

688
00:48:25.039 --> 00:48:29.800
real time search monitoring services. It's truly the future of

689
00:48:29.920 --> 00:48:34.800
marketing in a win again business is called Exact Match Marketing.

690
00:48:35.199 --> 00:48:38.360
Michael back over to you. Thank you, Chicky. That was great.

691
00:48:38.599 --> 00:48:41.559
As we wrap up today's episode on commanding premium prices,

692
00:48:41.639 --> 00:48:45.280
let's summarize the key elements of the value elevation framework. First,

693
00:48:46.159 --> 00:48:50.400
true differentiation discovery identify what generally makes your business unique

694
00:48:50.679 --> 00:48:54.000
in ways that matter to your customers, to customer interviews,

695
00:48:54.039 --> 00:48:58.519
competitive analysis and process on it. Second, value translation, converting

696
00:48:58.559 --> 00:49:03.320
your differentiators into specific, measurable benefits that resonate with your

697
00:49:03.320 --> 00:49:10.000
prospect's highest priorities. Quantifying these benefits whenever possible. Third, value

698
00:49:10.039 --> 00:49:14.119
based customer selection, focusing your efforts on customers who naturally

699
00:49:14.320 --> 00:49:17.599
value your unique benefits and are willing to pay premium

700
00:49:17.639 --> 00:49:23.400
prices for superior outcomes. Four Strategic offering architecture, structuring your

701
00:49:23.440 --> 00:49:28.599
offerings in ways that make price comparison comparisons difficult or

702
00:49:28.800 --> 00:49:34.639
relevant through proprietary packages, methodologies, and tiered pricing. Fifth is

703
00:49:34.639 --> 00:49:37.320
your risk reversal strategy, shifting risks from the buyer to

704
00:49:37.320 --> 00:49:41.320
the seller through results based guarantees, proof of concept options,

705
00:49:41.440 --> 00:49:48.800
and strategic social proof. Six. Value centric price presentation, communicating

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00:49:48.840 --> 00:49:53.559
prices effectively by establishing value first using value based language,

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00:49:53.760 --> 00:49:58.239
presenting with confidence, and being prepared for objections. And Finally,

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00:49:58.639 --> 00:50:04.719
internal value align ensuring your entire organization consistently supports and

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00:50:04.880 --> 00:50:11.920
reinforces your premium pricing through education, involvement, and aligned compensation.

710
00:50:12.039 --> 00:50:16.360
Remember that premium that commanding premium prices isn't about charging

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00:50:16.400 --> 00:50:19.480
more for the same thing everyone else offers. It's about

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00:50:19.519 --> 00:50:24.360
delivering exceptional value and communicating that value effectively, and structuring

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00:50:24.360 --> 00:50:28.519
your offerings in ways that make your premium pricing feel

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00:50:28.800 --> 00:50:34.159
natural and justified. Implementing these strategies require courage and conviction.

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00:50:34.559 --> 00:50:39.599
You'll likely face moments of doubt, especially when competitors continue

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00:50:39.639 --> 00:50:43.880
discounting or prospects questioning your pricing. In these moments, remember

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00:50:44.239 --> 00:50:47.599
the most successful businesses aren't those that compete on price.

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00:50:48.079 --> 00:50:51.719
They're the ones that compete on value and confidently charge

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00:50:51.960 --> 00:50:59.679
what they are worth. So to get a copy of

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00:50:59.719 --> 00:51:03.119
the book Powerful Business Strategy, simply go to our website

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00:51:03.159 --> 00:51:08.079
www dot NEXTSTEPCFO dot net. It's totally complimentary and until

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00:51:08.719 --> 00:51:12.039
next Monday at noon Eastern time for Chucky Obio. My

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00:51:12.119 --> 00:51:16.079
name is Michael Barbarita, and remember, don't keep doing what

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00:51:16.199 --> 00:51:17.880
your competition is doing.

725
00:51:19.880 --> 00:51:22.960
You have been listening to Powerful Business Strategies finding out

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00:51:22.960 --> 00:51:26.639
that everything you ever learned about growing your business is wrong.

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00:51:26.920 --> 00:51:30.119
Tune in next week and every week at noon Eastern

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00:51:30.199 --> 00:51:33.639
time on W four CY Radio with your host Michael

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00:51:33.679 --> 00:51:38.280
Barbarita of Next Step CFO and moderator Chugy Obio