Inna Korenzvit: The 6 Month Value Pricing Update
Six months into their value pricing journey, Inna and Mark agree that it has been the best thing they've done. Its been a huge paradigm shift but their customers, despite their trepidation, were super receptive and on board.
Our business has transformed completely from where we were a few months ago. We feel like we can concentrate more on delivering great service and great value rather than being worried of keeping track on our time sheets how much time we have spent on each particular customer and worried that having sticker shock when then receive our bill.
We've been working with fixed pricing for about six months and that's how long it took us to transition our current customers to fixed pricing. We were very nervous how our current customers would react to it, how well we will do taking on new customers with fixed pricing, but its been great. Most of our current customers are transitioned to fixed pricing and we have had the conversation with the rest of them who will be starting on fixed pricing on January 1st in the new year. Our relationship with our clients is definitely much better now. We strongly advise them to call us anytime they need us, not having to worry that we will be charging them in six minute increments for every phone call they make. I feel that they feel much more empowered with the service that we provide and primarily helping them deal with everyday issues.
I definitely feel more confident talking to new customers about fixed pricing and its been really encouraging how receptive everybody has been to it. I would say I'm not an expert yet. I don't know if I'll ever be an expert, but I definitely feel much more confident and able to do this well.
The biggest challenge has been having the value pricing conversation. People are so used to being billed per hour that they always ask us, "Well, we understand that this is the fixed price, but how many hours will it take you to do this work?" It's moving away from that way of thinking that has been most challenging.
Our primary objective is to serve our customers in the best possible way, providing them with great value, and so our goal is to grow organically as long as we can keep up with the workload and keep providing the great service, we'll grow slowly and surely.
Fixed pricing allows us to concentrate on providing excellent service to our customers regardless of how long it takes and it translates into getting more customers, getting happier current customers, providing more services and doing better in our business which affects our bottom line. Our income has definitely improved since we started this process. It has also made things much easier not having to worry keeping track of hours. The quality of our life and life and work balance has definitely improved.
Work on transitioning to fixed pricing. Be confident in what you do. Take it easy. Take it slow. If things don't work out, use it as experience to do better next time, but I totally believe this is a much better way.
Honestly, this has been the best thing we've done. Its been a huge paradigm shift internally. Our customers, despite our trepidation, were super receptive and on board. There was definitely times where we had concerns, but in working through that we gained better experiences and we're able to do it better every time after that. Its been a real shift for us in terms of work life balance and the quality of service we're able to provide to our customers.