We recently published a case study in The PricingBrew Journal, Identifying the Right Unit of Value for Pricing, with some excellent insights on how to more effectively and profitably price services. If your company sells services or bills by the hour, it’s a must read packed with lessons learned from this company’s journey.
The case study also had something very familiar–especially to those of us here at PricingBrew. We hear quite a few pricing case studies and war stories. The companies vary. The themes, players and outcomes are often different. But just about all of these companies have a common hurdle that they need to overcome to ultimately end up with better prices. What is that hurdle?
“But this is how it’s always been done…”
When it comes to pricing, the momentum of the way things have been done in the past can make new pricing strategies, initiatives or even setting new prices a challenge. Think about it…this pushback comes in many forms from all sides:
- “We’ve always set prices this way.”…although that isn’t necessarily the right way…
- “This is the tool everyone already knows how to use.”…although there’s are much more efficient ways to do it now…
- “I’ve been getting this discount for years.”…although he/she would still likely buy without it…
It’s only natural for there to be a resistance to change. As humans, we know the risks and benefits of the way it’s been done—and a new way has new risks and benefits. What’s new can be unsettling–even if the risks are smaller and the benefits are greater.
So if you’re working toward a new pricing strategy or initiative, be prepared to face this hurdle. As a change agent, you likely recognize the magnitude of the problem and how much better things can be. But for many, the problem isn’t a problem at all…it’s a solution that’s been working fine for years.
This hurdle is definitely a surmountable one if you’re prepared for it. And if the case studies we’ve seen and heard are any indication, you’d better be prepared for it.