Value Selling (Pricing) and New Entities

I received a phone call from an attendee from one of the Value Pricing Boot Camps that Ron Baker and I lead with a question to which I had not given much thought. How would one develop a value price for a customer that is a startup entity? When delivering a technology solution, it is critical that the possible value provided to the customer is developed before the implemention of the solution.

In our Sage-developed sales methodology, we look to establish two types of potential value for the prospect: cost not to solve and benefit to solve. Getting to these numbers is hard enough, but getting to them with a new entity would be no more than a WAG.

Does anyone have some additional thoughts on this? Thanks!


  1. Funny that you ask. We closed two startups in August. It was interesting because it was difficult to establish many of the key indicators but we were able to create a thought pattern with the clients that
    established how to generate value of their products and services. Thus, part of the engagement includes a value pricing seminar to the owners. The key was establishing a price that we were both comfortable with, understanding the risk to both parties, an agreement of understanding of the level of commitment by both parties, and a service contract that includes tech support items at a premium price. My personal services were including in the engagement where I will be assisting in their startup operations in relation to understanding their business as transitional decisions occur, so we can address their system needs immediately and effectively.

    It is a neat story but I was willing to take a risk on these startups without jeopardizing the level of service.

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