Value Pricing

“A wise old saying goes, (I think it was Red Adair) ‘If you think it’s expensive to hire a professional, wait until you hire an amateur.’ Shall we weigh the cost of expertise?”

Ever heard about that one colossal ship with the moody engine? No? Grab some popcorn 🍿

So, this beast of a ship is just bobbing around, engine kaput. Day by day, the owners’ pockets are growing emptier, and their moods grumpier. Expert after expert waltzes in with swanky tools and confidence that screams “I got this!” But alas, they leave, heads hanging in defeat. No vroom-vroom from the engine. Just crickets 👎

Enter Grandpa Joe. Now, Joe’s been in the ship-fixing game since ships were, I dunno, made of wood? He strolls in, toolbag slung over his shoulder, looking every bit the ship whisperer. The two big-shot owners, hopes sky-high, watch Joe like two kids watching a magician pull a rabbit out of a hat 🐇

Joe, after doing the ship equivalent of a doctor’s check-up, reaches into his bag. Out comes a teeny-tiny hammer. And with a tap so delicate it could’ve been a fairy’s sneeze, the engine roars  to life. Magic? Nah, just Joe being Joe 😉

Fast-forward to a week later. The owners get a bill that makes their jaws drop faster than an anchor. Ten grand! For a tap?! They fire off a snarky note to Joe, “Mind breaking down that crazy bill of yours?” Joe, cool as a cucumber, replies: 👈

“Tap with a hammer: £1.
Knowing WHERE to tap: £9,999.”

Moral of the story? It’s not always about the tap; it’s about the wisdom behind it. And oh, having a unique flair? It’s like having a golden ticket out of the “who’s cheaper” competition 👈

If you can offer something unique or better than everyone else you can take yourself out of the price competition and customers are prepared to pay much higher prices based on the value to them rather than the cost to you of producing it 👈

All businesses should review their pricing structure regularly.

Disclaimer: Paul Stankiewicz is the owner and principal at Paul Marks & Co Chartered Accountants which is the trading name of Paul Marks Ltd a Limited Company registered in England and Wales (registered number 4487645).This article is designed for the information of readers only and is the opinion of the author only. Readers should not act on any of the information contained in this article without seeking professional advice. Nothing in this article constitutes advice, nor does the transmission, downloading or sending of any information or the Material create any contractual relationship. Links to third party websites are provided as a convenience to the reader, Paul Marks Ltd does not control and is not responsible for any of those websites or their content. Paul Stankiewicz and Paul Marks Ltd accepts no liability or responsibility whatsoever for any loss or damage suffered by any user of the information contained on or accessed through this article or the Material downloaded.