7?? Price complaints: A sign of success
Bob Bradley
?? A real business leader that speaks with leaders ?? On STRATEGY & LEADERSHIP for GROWTH & VALUE ?? Sharing insights from experience ?? Leading 3 ￡10M+ businesses ?? Facilitating 800 business leader group discussions
Are your customers complaining about your price? Do they say you're charging too much? That's great news. That's exactly what you want them saying. This is something I learnt right back at the beginning of my career. My very first Managing Director, the late John Bowen.
Problem or challenge
Many business leaders are hesitant to raise prices due to fear of losing customers. The challenge lies in understanding that customer complaints about price can actually be a positive sign. It indicates that your product or service is perceived as valuable and worth paying for.
Complexities
Of course it can be difficult to differentiate between legitimate complaints about price and those that are simply bargaining tactics. Additionally, raising prices can be a risky decision if not executed properly.
Solution
Firstly don't be alarmed by customer complaints about pricing. It's a natural part of doing business. If they continue to purchase from you despite the higher price, it indicates that the value you provide outweighs the cost. Maintain your pricing strategy to ensure your business remains successful and profitable.
To effectively manage customer complaints about price, consider the following strategies:
Benefits
By embracing customer complaints about price, you can:
Why it works
Customer complaints about price are often a sign of a healthy business. It indicates that customers perceive your product or service as valuable and are willing to pay for it. By understanding the value you provide and effectively communicating it to your customers, you can justify your pricing and maintain customer satisfaction.
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Measurement
The effectiveness of your pricing strategy can be measured by:
My story
I’m so pleased to share this story as coming from my very first Managing Director forty years ago as it shows how important an influence our leaders have on the future of our world and how simple golden nuggets add value. Which is of course why I share so much. I’ve had the good fortune of learning so much about leadership. Some from some great people and even more from the misfortune of making so many mistakes as a leader myself. My purpose in sharing here is that my thoughts inspire you to be an even better leader and as a result you achieve even more success for your business - and in your life!
The next time you receive a complaint about your pricing, remember that it's often a sign of a healthy business.
By understanding the value you provide and effectively communicating it to your customers, you can justify your pricing and maintain customer satisfaction.
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?Our typical customer is a; MD, CEO, SD or business owner who is looking for a sustainable improvement in sales results. We deliver more; customers, repeat business, revenue & better margins?
1 个月Great post Bob my approach to this is to recognise there are three key components that come into play when selling anything - price, cost and value. Typically the prospect focuses on price and cost while the sales person focuses on value. The problem with this is that the parties are in effect talking a different language - the sales person needs to help the prospect appreciate the value but must first understand the prospects position on price and cost.
Helping B2B Tech, IT & Digital firms increase margins & revenue growth with tailored pricing services. ** Top 100 Global Pricing Leader **
1 个月Excellent points Bob. Customer complaints about pricing are a normal part of business, and they are to be welcomed. However, business leaders mustn't get swayed by feedback from sales teams that "the deal was lost on price" and conclude that ALL their pricing is too expensive. This is the start of a downward spiral from which it is very hard to recover.
?? A real business leader that speaks with leaders ?? On STRATEGY & LEADERSHIP for GROWTH & VALUE ?? Sharing insights from experience ?? Leading 3 ￡10M+ businesses ?? Facilitating 800 business leader group discussions
1 个月As it happens my good friend Mark Peacock has just posted his thoughts on pricing too - he's even offering a free download of a very helpful booklet. See here: https://www.dhirubhai.net/posts/mark-peacock-pricemaker_raise-your-prices-without-raising-eyebrows-activity-7284486900378136576-NEWR
Coaching Psychologist. Functional Imagery Coach. Workshop Facilitator. Trainer. Keynote speaker.
1 个月Thank you for sharing Bob Bradley. From a psychological point of view, I wonder if culturally in the UK we hold ourselves back by avoiding expressing the value of what we offer, because it might appear to be bragging, pushy, or arrogant in some way. And yet that quietly confident self-assurance is essential if we are to be successful in selling. A complaining customer presents us with the challenge of having to disagree with their assertion, and this creates an emotional us-and-them scenario, raising the risk of rejection. Using open questions is a less-confrontational approach than the habitual 'yes, but no' parrying that entrenched parties fall into until one side concedes. Better to ask of the customer how or in what ways does the product or service satisfy their needs, and what other similar products or services could they consider. The introduction of a 3rd party comparator removes the us-and-them conflict: sitting side-by-side, both parties can look together at the same options. A calm mind leads to better outcomes.