Episode #93 - Creating Customer Choices

A story

Parent A: “We are leaving 2 minutes

Parent B: “Would you rather leave now, or in 2 minutes?”

Humans are predisposed to idea of choices.

Why do car wash establishments have more sophisticated pricing than professional knowledge firms?

How you price more important than how much you price.

Sell insurance for things people don’t want, e.g., concierge medicine, dentists, termites, etc.

Sell Access-Level Agreements (Assurance) for things people want, e.g., hairstylists, lawyers (accessibility retainers), CPAs, IT firms—keep systems running.

Ed’s Sage white paper: Creating Access-Level Agreements. Download here.

Items to use to build pricing fences:

  • Response time
  • Meetings
  • IRS Representation

“No Plan Level” puts a price on individual items, e.g., $500 per meeting, etc.

Black Card Level is by invitation only, and if your firm’s highest level of exclusivity.

The Seven Ts Model

  1. Timing
  2. Terms
  3. Technology
  4. Talent
  5. Tailoring
  6. Transference
  7. Travel (out-of-pocket expenses)

Ad Agencies can use these additional fences

  • Key elements of program
  • Degree of customization
  • Number of elements
  • Number of revisions
  • Degree of client help/involvement
  • Data archiving

Example

CS3 Technology SERV Access Plan.

Comment

Ed Kless

Ed Kless joined Sage in July of 2003 and is currently the senior director of partner development and strategy. He develops and delivers curriculum for Sage business partners on the art and practice of small business consulting. Courses include: Sage Consulting Academy, Business Strategy and Customer Experience Workshops. Ed is the author of The Soul of Enterprise: Dialogues on Business in the Knowledge Economy, a compendium of a few of the episodes of his VoiceAmerica talk-show The Soul of Enterprise: Business in the Knowledge Economy with Ron Baker, founder of the VeraSage Institute where Ed is also a senior fellow.