The Power of Conversation
Because value is subjective and price is the value that the firm captures, there is no single number which reflects the price every client perceives as fair. The price is a range, depending on the client’s perception of the benefits received.
And perception is subject to influence - a whole industry has been built around it! (Just watch The Gruen Factor.)
Many professionals seem immune to the concept of spelling out to their clients, the value the professional is delivering. In working with and running workshops and seminars for professionals, it is clear that part of the problem is that many professional themselves don’t understand the nature of this value. When asked to describe value, they often describe the actual work they do, not the client’s perspective of the value delivered.
The client’s value perception is influenced by the value conversation - and an effective value conversation provides the opportunity to influence the client’s acceptance of the assistance offered by the professional, and a price which delivers value to both.
Not only does an effective value conversation help the professional (and often the client) understand what the client perceives as value, it enables the professional to clarify the client’s expectations, understand the client’s risk appetite, and in turn the benefits and features which can form an offering that will provide maximum value to that client.
There is an art to an effective Value Conversation. The Innovim Group run workshops helping professionals become skilled in this art, as well as pricing for value, and delivering effective pricing options. Our next course commenced on 14 August 2019 (in person and online options available). For further information see here.