Feb 1, 2021
Chris Hopf is a Trusted and Respected Monetization + Pricing Strategy Consultant to Innovative Software and Technology Market Leaders. He helps innovative software and technology companies of all sizes create, recognize and capitalize on opportunities to achieve their full market potential - every day - every transaction. For more than twenty-five years, he has worked as an owner, employee, and as a consultant with small startups, mid-sized mergers, and Fortune 50 Corporations such as Microsoft and United Technologies.
In this episode, Chris shares why companies should know how to communicate their value as there is always pressure to reduce price. In this regard, they need to stand up for their value. He also talks about how companies must understand the distinction of strengths, advantages, and alternatives, so they won’t be missing opportunities to be always relevant to their customers.
Why you have to check out today’s podcast:
“Give your pricing a chance. And part of that is making sure that you're taking a really honest look at what your advantages are, and honest look at what your advantages will be in the future. And making sure that you're giving those advantages the best chance.”
- Chris Hopf
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01:36 - The different ways Chris works with companies
03:09 - How he got involved in Pricing by chance
04:09 - His main reason for staying with Pricing all these years
05:29 - What is ‘The Revenue Due Diligence: The Ten Steps to Scalable and Recurring Revenue’ all about
06:29 - Why would someone pay?
08:32 - Who is willing to pay -- what ‘The Pricing Window’ visual is all about
09:27 - How can you influence the ability to pay
10:37 - Why is it important to understand who your customers are and prioritize your efforts
11:48 - When are they most likely to pay -- understanding the ‘buyers’ journey’
13:10 - How seasonality’s affect how companies buy
15:28 - How will they know about you -- how is it best for people to know about the value and the advantages that you deliver to your customers
16:36 - Why is it that in the ten steps mentioned, in no way does it ask how much should we charge
17:04 - Why choose you now -- what are your advantages
18:13 - What is the key to creating a sense of urgency
20:01 - Pricing problem versus value messaging opportunity
21:27 - Why do companies sometimes don't do a very good job of communicating their advantages
22:15 - Distinction between advantage and a strength
23:09 - Why keep choosing you, and why pay more from you?
23:28 - Why tell others about you?
24:27 - Why stop choosing you?
25:43 - Why always highlight to your customers the value you are delivering to them
27:05 - Chris’ best pricing advice that will impact your business
27:41 - Stand up for your value
“One way you can influence the ability to pay or possibly drive or increase the ability to pay is if you think of your solution and the people within the organization that are impacted the value that is received.” - Chris Hopf
“Companies don't think through these in a very organized and deliberate way. And they can spend a lot of time focusing on being relevant, and acquiring customers that really are and should be considered distractions, maybe distractions for now, and maybe not in the future. But it really is important to prioritize your efforts.” - Chris Hopf
“For some companies, there's seasonality to how they buy, and this isn't only their initial purchase, their initial decision to do business with you, but what are they most likely to pay to expand with you?” - Chris Hopf
“What I found is sometimes people do a relatively good job, some better than others around understanding their advantages. But they don't go to that next step around, 'Why now?'. What are you going to do to compel action?” - Chris Hopf
“What's key to creating a sense of urgency is creating a sense of opportunity, you create that sense of opportunity, and you frame that well in their minds in terms that they understand and relate to their business and the outcomes they care about. And then that's how you're going to create that sense of urgency. But what's key is that it needs to be directed back at your solution over other alternatives.” - Chris Hopf
“People actually don't spend much time understanding with clarity an honest assessment of their advantages over alternatives.” - Chris Hopf
“A lot of times when people reach out to somebody like me, is they think they have a pricing problem. And oftentimes, they actually just have a value messaging opportunity, right. So, they aren't doing a very good job of not only communicating their value that will resonate with their prospects and customers, but they don't do a very good job of communicating their advantages.”
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