Kirk Bowman: The Art of Value, Value Based Business Model
Kirk Bowman is an entrepreneur and thought leader on value. No one speaks with more authority on the practical application of value based business models and sales. Enjoy!Let’s level set; Art of value – When you say value, what do you mean? I’m sure it’s not ‘the cheapest in town’.
– The value a customer will receive or achieve as a result of doing business with you. Must focus on the end result.
What prompted you to take such a large departure from the standard time and materials business model?
– Not every customer is open to having a great conversation…
– What’s most important is outcome. Everything I do should be focused on that outcome and is significant. We should be moving the needle.
– Bad customers drive out good customers… Courage to drive them out early…
How do you introduce the concept of value pricing to the client?
– Guide the conversation with great questions.
– Not every customer is open to having great conversations.
– What’s most important is the outcome you’re seeking. I’m really interested in doing work that moves the needle – 10% or more.
– Not every customer is a great fit / good customer. If you load yourself up with bad customers, you’ll drive out the good ones.
In your transition to a Value Based business model, did you think about turning back, going more traditional? Tell us about the circumstances that pushed you to the breaking point?
– Early in your business or if you are in a slow time you’re going to feel major pressure to ‘cave’. This is not a pressure that ends, it will be revisited many times over the year.
– Have a process for transitioning over 6-12 months.
How does the concept of value play out through the customer life cycle – marketing, sales, service, retention.
– Interviewed Joanie Newkirk, Author of Brilliant Price Hike, about Disney raising prices in the 2000’s. Listen here.
– Consolidated all pricing into one department.
– Abundance mindset rather than zero sum game of the scarcity mindset.
I’ve talked to you mostly about value in the context of selling based on value. I’m currently selling to large organizations, as do many of our listeners. I don’t have total control over my business model, like an entrepreneur running my own company. How do you see these concepts playing out in this environment?
– Business model is based on a philosophy of how the world works. Charging for your time is based on Marxist Theory, Labor Theory of a Value, Sum of everything ti took to build it.
– Versus Subjective Theory of Value. where value is in the eyes of the customer.
– Hourly billing requires a calculator. Value billing requires courage
Find more about Kirk Bowman:
www.artofvalue.com
@artofvalue
Listen to a few great shows: