Your Customers Earn a Profit from You Too


This idea has been talked about in many different forms, but I thought that putting a graphic together would help illustrate the point.

In each transaction in a capitalist system wealth is created on each side of the transaction. What a system!



  1. Very clear picture, Ed.

    The next step is to develop the skills and confidence to enable your customer to appreciate for themselves the fullest extent of the green, value, “What’s in it for me?” column.

    ‘Value Pricing’ seems to be getting hijacked by the ‘cheap and cheerful’ brigade these days, so I talk about ‘Pricing by Value’.

  2. David, thanks for your comment.

    Yes, customer understanding of value is absolutely critical and not easy work. The reality is that you cannot get the customer to see it, they must realize for themselves. Your role as the professional is to ask great questions which (hopefully) allows them to see the value.

    To assist with this, I would recommend Mahan Khalsa book, Let’s Get Real or Let’s Not Play. It is a terrific guide to structuring the conversation around value.

    Without an understanding of the perceived value, effective pricing is impossible.

    Your second point about the term “value pricing” be usurped by the “cheap and cheerful brigade” is correct. This is why we at VeraSage have begun using the phrase “pricing on (or with) purpose.” We feel the more fully encompasses the essence of what we are doing.

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