The Accelerated Entrepreneur – It’s Good to Have a Mentor

I am grateful to Jim Flowers who serves as a Mentor to me and to all member companies of  VT KnowledgeWorks

I share wisdom for entrepreneurs with readers today from his blog, So you want to launch a business…   

Since I have Moxie and I am an accelerated entrepreneur at VT KnowledgeWorks, expect me to think I have some of my own to share tomorrow.

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Market, Magic, and (oh, yeah) Money
Self-negotiation – a common malady …

One of the biggest challenges for start-ups is pricing.  It's particularly troublesome when the product or service is something truly fresh and the market value relative to substitutes has not been clearly determined.  And, naturally, having almost no clients and therefore almost no revenue adds lots of flavor to the soup.

I just had a most interesting experience.  A service company quoted me a price for four assistance sessions.  I accepted the deal and began preparation of my part.  A few days later they sent me a half price offer based on their assumption of how much value I was going to receive from the service. 

Mind you, I didn't request a lower price.  They just offered it.

It wasn't a lot of money, so I explained that my assessment of the value justified the original price, and why.  The reply was as you might expect, "Oh, that's why you are doing it.  We assumed that you were doing it for this other reason."

I've also seen numerous instances of companies offering lower prices just because the prospective client was slow in responding to an offer.  It's all understandable, of course.  When you really, really need the sale, your price-cutting trigger finger gets twitchy.

Buy a good book on pricing and one on negotiation.  Read them – before you negotiate with yourself and leave lots of money on the table.

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