Episode 86: The Mindset Shift Towards Value Pricing, with Filip Fucic

In this episode of the Business Habitat, Sam digs deeper into value pricing, a topic close to the heart of anyone in business. She is joined in this discussion by Filip Fucic,  a value pricing expert based in Croatia, who has helped business leaders around the world improve their pricing by 15 to 50% within a two month timeframe, by shifting how they think about the value they provide.  

In this follow up episode to Episode 58, Sam and Filip explore further the Expert Paradox and why pricing on a dollar per hour basis does not always reflect the expertise and value provided to clients. Recognising the need for a value pricing revolution, Sam & Filip explore the challenges in resetting the traditional pricing model and reiterate Sam’s earlier proposition that re-educating the market takes time, effort, thought and skill. 

Filip underscores the need to be able to communicate the value and talks to the inelasticity of pricing adjustments, particularly when the service offering provides benefit to the client. Using clear examples and straightforward logic to emphasise the merits of this mindset shift, this podcast is essential listening for any business leader looking to optimise their bottom line and demonstrate the intrinsic value they provide to their clients. 

What we cover in this episode

• The Expert Paradox  

• The difference between billing and pricing 

• How to tell if you’re under-pricing 

• Pricing elasticity 

• The non-monetary components of price 

• The renaissance for experts created by Covid-19  

• Filip’s top tips for value pricing 

Quotes 

“The complete value is a mystery to most of our clients. That’s the paradox. People who need you, don’t value you. People who value you, don’t need you” - Filip

 “Billing and pricing sound like the same thing, but they’re actually not necessarily the same thing“ - Filip

 “The client will only pay for the part that they can see, so only the consensual part of value is something that the client will be able to pay“ - Filip

 “If nobody ever says “No, you’re too pricey” you’re probably too cheap, because about 20% in each market are price buyers, who don’t care about anything but the price. So if you’re cheap enough to satisfy price buyers, most people would actually pay you more. “ - Filip

“To really get clear that you’re not interchangeable. That every expert comes with certain experience and  background that’s unique to them“ - Sam

Links mentioned

Episode 58 - The Value Pricing Revolution We Need

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