Get Radical About Pricing

Two happy businessmen looking at digital tablet at desk in officeForget about measuring by time.

By Jody Padar
The Radical CPA

“Forget about pricing and think about what people buy.”

Customers are not buying our time. They may be buying our expertise. But they’re really buying a solution to their problem. Famed management consultant Peter Drucker says, “A customer never buys a product by definition, the customer buys a satisfac­tion. Satisfaction of a want, he buys value.” He’s buying a good feeling.

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When lipstick leaves the manufacturer, it’s a solution. When it crosses the counter in a department store, it’s hope. From this perspective, how do we make our services into products or solutions? That’s essentially what you are doing with bundling and packages. You are productizing a service.