Dissatisfaction is the key to capturing a higher price than your competitors when you are trying to make a competitive displacement. It not only provides the compelling reason to change, it gives you the opportunity to create value that’s worth a higher price.
Without dissatisfaction, there is no reason to pay more.
Sometimes you are asked to fill out vendor paperwork and your dream client procurement department dictates the price. They believe that you are a commodity and there is no value that you can create that is worth paying more to obtain. But if they are adding suppliers, there is a reason.
Sometimes you are told that if you want an opportunity to work with your dream client, you’ll have to match your competitor’s price. There is so much wrong with this! If your dream client feels they need to add (or replace) someone, there is some level of dissatisfaction.
In both of the case above, if your dream client isn’t getting what they need, it’s likely that they’re underinvesting in the result they need. Instead of matching the price you need to discover the source of the dissatisfaction and cure it … for a price commensurate with the greater value you create.
Dissatisfaction comes with a cost. Sometimes the gap between your dream clients current and future state is hard, easily identifiable costs, like lost sales, waste, missed shipments, down time. It’s usually pretty easy to capture these costs and use them to justify a higher price. Some costs are softer, they’re more difficult to capture, like time and energy. But these costs are no less real. And they can also be used to justify a higher price.
Dissatisfaction means a higher price for greater value is possible.
What gap does your dream client need to have to make you worth paying more?
If you can’t identify the gap and the greater value you create, why should your dream client pay more?
Why is it worth it for your dream client to pay more and acquire the greater value you create?
Why do you need to be paid for creating greater value?
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Filed under: Sales 3.0