About a month or two ago, I received an interesting email from the President of a company where I use the free version of their service.

They also have a paid version of their service for only $10 a month.

The President began the email by acknowledging their ongoing dedication to being transparent and how it’s actually part of their culture.

Then he explained, penny by penny how the $10 a month fee is allocated from server costs to employee salaries etc.

Pretty damn transparent, right?

I’m also thinking it was pretty damn unnecessary!

1) And I don’t mean to be rude, I really don’t care what YOUR costs are . . . I only care that your service does what I need it to do.

2) Feeling a need to explain your pricing to a prospect (when they didn’t ask you to) tells a prospect that YOU aren’t confident that you are worth your fee. In a traditional B2B negotiation, your prospect would smell blood and would beat you into submission.

3) If by the time we get to the price discussion there’s a need to explain (line by line) why you are charging what you’re charging you are either courting a cheap bastard or you failed somewhere earlier in the sales process.

This Boils Down To A Few Important Things

First, I’m a huge fan of creating a “culture” on your team and conveying that through the customer experience. Quite frankly, I think we need more of that but;

That “culture” should underscore, not undermine the ability for the team to go forth and kick ass.

And why should we EVER have a need to justify what we charge?

Oh and should you feel a need to justify your price, think again because . . .

AWESOME comes with a higher price tag.

Now if by chance you aren’t awesome, or your company isn’t awesome;

Then expend the energy you’re spending justifying your price to either creating a better customer experience or looking for a job with a more reputable company.

Thoughts?

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