Professional Service Providers Are In Such A Strong Position

Being a Professional Service Provider means you are already a transformation business. Buyers of transformations are aspirational - They actively seek change.  In a transformation business, the customer is the product.  They are begging, "Change me!"

What happens after purchase and after consumption is what really determines price sensitivity amongst customers of Professional Service Providers, but you can't afford to wait that long.  You need to price your services like an airline prices its seats on the same flight.  To do this, you have to segment your customers by how much they're willing and able to pay.  This is price discrimination.

Forget demographics!  Get them to differentiate themselves each time they're thinking of buying.  Whose money they're spending, and on whom, will also have a bearing.  Use of the word 'discrimination' is correct in this context but it has unfortunate undertones!  This discrimination is based on the customer's subjective perception of value.

“Great pricing strategies are designed to get customers to reveal
  the maximum they are prepared to pay”

Great pricing strategies are designed to get customers to reveal the maximum they are prepared to pay.  To do this your strategy needs to meet four requirements:
* Market Power - You are able to raise prices without losing all your customers
* Separable - You can divide your market into sub-markets
* Transaction cost less than potential profit - The cost of doing the segregating must be
   outweighed by the extra profit
* You, the Seller, must separate buyers to prevent a 'black market'

All this is very easy to do when you're providing services!  Very few services fail to have Market Power!

Segregation requires understanding of motivations - This is easy in a sales conversation, which is a necessity when selling services!

And it is impossible to create a black market in services because they can't be sold on!

Professional Service Providers really should be taking advantage of the strong position they naturally have.

Professional Service Providers who charge for their time or their materials, or whose prices are influenced by their competitors can find out how to get paid what they're really worth at www.sws_emp.co.uk.