Price wrong and your business dies or is shut down for breaking the law. Price right and the world’s yours. There are practices you can adopt to ensure you don’t run off customers, don’t leave money on the table, and are able to grow a profitable, transferable business. Share your pricing issues as you learn about best pricing practices you can use for new or established products or services.

1. With Jan Triplett, Ph.D. CEO, Business Success Center © 2011 Austin, TX Best Practices in Pricing © Business Success Center, Austin, TX 2011 1

2. © Business Success Center, Austin, TX 2010 2

4. Providing guided growth to achieve success since 1982

5. Sales, marketing, & financial management focus

6. Clients from A-Z industries, high tech to no tech, products & services© Business Success Center, Austin, TX 2011 3

7. Your Company Focus? B to B? B to C? Better to be P to P .)(. (Belly Button to Belly Button) © Business Success Center, Austin, TX 2011 4

8. Who’s your customer now?Who’s your prospect now? Platinum & Gold — create stabilitySilver —has potentialBronze — uncertainLead — a time waster Concrete — a business killer & never satisfied Radio Active Waste a long-lasting reputation & confidence destroyer © Business Success Center, Austin, TX 2011 5

9. Platinum customers are… • Visionaries See problem as you do See value of your solution • Adventurous Confident in you Trust you • Decisive Hassle-free or less hassle © Business Success Center, Austin, TX 2011 6

11. Easiest Sale© Business Success Center, Austin, TX 2011 7

12. A “Fair” Price Customers want: To get good value, pay a fair price. Sellers want: To give good value, get a fair price. Dilemma: What’s fair to one; may not be fair to the other. © Business Success Center, Austin, TX 2011 8

14. Stock up

15. Repeat buy

16. What else?© Business Success Center, Austin, TX 2011 9

17. Pricing Considerations © Business Success Center, Austin, TX 2011 10 Pricing is an emotional issue for you, your employees, & customers. Buyer reaction to price is unpredictable. Shoot from the hip & you’ll end up shot in the foot or worse. One price strategy usually doesn’t fit all products/services. Controlling costs can make a business more profitable than raising the price. Stay alert: pricing laws & regulations change.

18. What You Need to Know about Pricing Pricing should be… Pricing will… © Business Success Center, Austin, TX 2011 11 An attention getter and qualifier. A way to position your company. Perceived by your Platinum-preferred client as a benefit not just a feature. Make you rich or at least comfortable or just sick and tired. Affect the success of all areas of the business. Require that you don’t just set it & forget it.

19. Your Price is NOT Right for Everyone It’s all about: Getting the right customer Keeping the right customer Considering their perceived risk Knowing your true total costs Identifying the top value you bring Accounting for long & short term goals THEN Pricing Right & legally! © Business Success Center, Austin, TX 2011 12

20. The Big Debate Cost Vs Value © Business Success Center, Austin, TX 2011 13

21. Best Practices in Pricing • Price what you’re worth. • Use KISS pricing system. • Account for profit, contingency & hassle-factor. • Price for positioning. • Monitor & adjust. © Business Success Center, Austin, TX 2011 14

22. Worst Practices in Pricing • Undervaluing your benefits. • Under-estimating costs. • Not considering your Platinum customer’s “Flinch Point”. • Blindly following competition. • Inconsistent pricing. • Violating laws - DTPA © Business Success Center, Austin, TX 2011 15

23. Good & Bad Pricing Examples Charging $15 per hr for professional services Providing a $400 discount on a product Charging $500 for one research report Charging low price to get started Your examples? © Business Success Center, Austin, TX 2011 16

24. Here’s to your success! Business Success Center Sales & Financial Management Services January 15, 2011 Jan Triplett triplett@bscusa.com Twitter@JanTriplett Facebook@JanTriplett © Business Success Center, Austin, TX 2011