Jeff Parker States Pricing Strategy Is To Underprice and Overdeliver to Capture Market

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Parker12_PricingPhilosophy

My philosophy is to always underprice and overdeliver, underprice and overdeliver, and take the market by storm. So, if I could charge somebody $2,000 a month for something eventually, that that price point if you're an early user might be too high, I might say, well let's just go in that a price that won't be a problem - you know, pick a number, $500 a month - and let's just go get the marketplace at $500 a month. Now, you have to believe that you can make money at $500 or at least break even at $500 so you can put a base in place, but then as that market starts to take on your product and it becomes a fabric of the market, moving the price point up by either adding some products to it or just increasing the price modestly, which is exactly what we did all the time. We moved that price point up. We started in the corporate market at about $500 a month, and I think the average price today is over $2,000 a month, because you layer the product with other things. And as you develop a relationship with your client and they obviously realize you can deliver and you're a dependable vendor, moving those price points up is not a problem. I always had this philosophy that I didn't want my potential customer to have to think about pricing. In fact, sometimes when would sell First Call - a very odd approach to selling things - I would actually tell the customer the price in the first sentence. I would say, "Let me tell you what we're going to look at here. We're going to look at a commingled screen of research, and the price is $1,500 a month." Now, I was talking to somebody that might have made $1,000,000 a year, and the organization might have made $50,000,000 a year. And I said to them, "I want price off the table. This is about whether this is valuable and efficient to your business." So many people sell a product and they never get to the price. And the customer sits there thinking, "How much is this thing going to cost me? It's probably way too ..." And they're not paying attention to the product. So, I used to say to myself, "You should just tell them that it's $1,500 a month, and that's not going to be an issue." Because it's worth a lot more than that, and I'll let you look at the product. People would say, "Wow! That's sort of an interesting way to do business."