Six tips to raise your margins with value-based pricing

As a Success Partner Manager, I am working with inbound agencies, resellers, integrators and more to raise their margin while delivering great value to their customer.

If you want to raise your margin as well, here are 6 #tips to get started

Note: these tips are also available in an infographic format here if you prefer

1. DISCUSS INVESTMENT vs GROWTH

Only a few firms align goals and marketing needs.

Take a few comparable firms with similar growth goals (and size) using public financials of companies in same industry. Show to your client where he falls in relation to what these similar companies are doing.

2. SELL PROCESS, NOT PROMISE

Do not promise results you cannot deliver.

Because you have limited data, and no control over your client’s business decisions, sales capabilities or capacities, and close rates, do not promise results you cannot deliver. Instead, sell the inbound process and methodology.

3. SHARE THE RISK

Embrace value-based pricing.

Even if you’re just getting started, or if there are special circumstances that will take time to see results, consider “stepping into” your new value-based rate. No matter what, you’ll probably see healthier margins than cost-based pricing.

4. USE RELEVANT DATA TO SET GOALS

Setting realistic goals depends on data.

Do you know what has created your customer's traffic, if there are duplicate leads in the database, or how old are the leads. Do you know how many deals closes per month, where they came from, etc. Ask the right questions.

5. DON’T CHASE PERFECT DATA

Data will never be perfect.

You do need to have enough confidence in the data’s accuracy and reliability that you can use it to predict future results based on past trends. Without that, there’s a greater risk for both you and your client to be disappointed and dissatisfied.

6. SET PERFORMANCE METRICS

Use HubSpot ROI Calculator.

When client data isn’t as pristine or reliable as needed, use HubSpot’s ROI Calculator to have the goal setting conversation with your client. The more transparent you are, the faster and deeper your client’s trust will grow.

Do you have any additional tip to share to raise the margin? Feel free to share in comments! You can also download these tips in an infographic format: #GrowBetterInfographics:

=> If you already are HubSpot Partner, reach out to your Channel Account Manager and Channel Consultant to start implementing these tips now!

=> If you want to become HubSpot Partner, find out more here!

As always, sharing is caring, feel free to spread any more tips you have in comments ;-) 

#InboundSales #GrowBetter