Price as a message

In our regular Clubhouse session on leadership communication we had an interesting discussion about price. One of the participants reported that they managed to get a deal despite having the most expensive offer (by far) among 12 competitors.

Upon further dissecting the pitch it turned out that they got the deal not despite being the most expensive competitor but because of it.

The customer’s management told themselves the story that they only deserve the best. The high price communicated exactly that.

So, when it came to pitching the concepts, the decision was basically already made at the moment the customer heard the price. Everything that came after that was just there to justify why this was indeed the premium offer that they deserved.

This is an important lesson about pricing. Often, the price is seen as the result of adding up the effort of everything that went into building the offer. Yet, price is essentially a story. And so a different perspective on price is that it can also be the starting point of the story. The task of building a product is then to build a product that deserves to be sold at that price point. How does our offer need to look like so that – despite the premium price tag – it still feels like a bargain?

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Dr. Michael Gerharz

Dr. Michael Gerharz


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