Pricing Your Growth

As business owners, most of us have vivid dreams of growing and scaling our companies.

Often though, we hit a point where it feels we are running against a wall

Where what used to work is fading… like a computer’s battery after a couple years.

Acquiring another business seems like the only way to grow …. and that’s not possible for a lot of us right now.

But there are other things we can do before we go down an acquisition path.

And it has to do with leveraging the drivers of growth that we often overlook or consider not applicable.

But they are practical and can be used today.

Not only to build a more valuable business down the line if you ever sold it, but also to build a stronger, profitable business today.

It’s a big topic that we cannot fully cover today, so I’ll just talk about pricing and give you some ideas to think about.

Organic Growth through Pricing

Many of us feel powerless when it comes to pricing.

We feel we are at the mercy of “what the market will pay” or what our competitors charge.

But if you are able to differentiate yourself from your competitors.

If you have a customer base that is loyal and buys from your repeatedly.

Then guess what… you are doing something right.. and you can raise your prices by increasing the value of what you offer.

And become creative with how you increase your pricing.

For example, if you provide services, Grandfather in prices for your loyal customers who have been with you the longest while charging more for newer customers.

It’s a philosophy I am seeing more and more – especially with information providers.

Also set the agenda with your pricing.

Is what you provide really determined by 60 minutes?

For example, a business owner came to me after being approached to buy her company. We went through a business audit and had a 60 minute consultation.

In the consultation, I pointed out her business’s strengths and weaknesses, and things to think about while negotiating with the potential acquirer.

A couple weeks later, she came back to me and told me that our 60 minute consultation helped her negotiate a $350,000 increase in the value of her business, and that she was close to finalising the deal.

So should I price my expertise at $350,000 an hour?

Of course not.. that’s insane…

But it’s also insane to discount my expertise to $0.35 an hour because some clown is offering that rate online.

So, price what you provide based on the impact and value you give, and then multiply that by any transformation you help your customer achieve in their life.

Your pricing reflects how you feel about the value and quality of your solution.

Raise your game and do the same with your pricing.

Over the next several days, we’ll talk about other organic and growth strategies.