Why the worlds global local bank called me for PR and how confessions of a pricing man can make n...

Hello and welcome to today's episode of the Speak PR Podcast. My name is Jim James and I am your host today. So I'd like to talk to you today about second value pricing. Doesn't sound very exciting, does it? But it's something that came to mind to me today because I registered East West Public Relations as a Limited company on Monday, and on Tuesday I got confirmation from from Companies House. And I'm pretty excited about it, to be honest. I'm 25 years after I registered my first company in Asia. I've registered my my company here in the UK, moving from sole proprietor to private limited. So I rang up HSBC because I bank with them all over the world, and have an account already. And when I said I want to convert this to a private limited, they said to me that, um, that was going to require opening a new bank account. Now I have to confess I'm a bit disappointed about that. I was hoping that I would be able to commute one to the other. So I had a very nice chat with the young man on the phone because, uh, I was trying to navigate to the forms, and, and I asked how long it would take, and he said, um, actually, sir, I don't know because we've had a backlog of people working that used to be on the new account openings now working on the bounce-back loans. Now, Rishi Sunak has obviously done a great job. Many companies, including my own, have applied for this bounce-back loan. And it's a saving grace. HSBC alone had 110,000 applications, and as the young man said, this is over six years' worth of requests in the space of about six weeks. So the team are massively behind, and I said, "Oh well, actually we've we've applied, and the bounce back loan was approved within five days, and the money was in my account." I think you guys did a great job. He said, "Oh you know." That is so nice. Thank you so much for letting me know. And do you mind if I tell my my team? And I said, "I'm happy for you to tell your team because it's good news and they've done a good job and I appreciate it." So I thought you know nothing of it. Then today I received a letter from what I thought was company's house, but I opened it. It was from a company called Counting Up. Now I open the letter and it says, congratulations, Adrian, on starting a company on your own, which can be a challenge. Counting Up makes it simple. Open your free business account in just 5 minutes. Scan the QR code on your phone and download the app and follow the setup signs, and I will have an account number and a sort code and And a MasterCard. Now this letter says it's entrepreneurs like me that power our economy, and I agree with that. And says we're like you, we got fed up with the month-long wait to open a high street bank account with the lengthy application forms. Now I have to say I'm both impressed and slightly bemused how within 48 hours of actually opening a company and going to Companies House This letter is in my, in my, uh, in my house. So one question is, from a PR point of view, is it good to get such a personal email so quickly? Um, is it, is it efficiency or slightly eerie? Well, I decided of course that I would have a look at the website, and, uh, because I haven't heard of counting up and I haven't seen it in any other press about banks, and, um, On the website, there is a narrative about the founders who went to school together and, um, started this bank, uh, not that long ago, um, in 2018. Um, but there's no, no press coverage. There's a blog and apparently an astounding 20,000 customers qualifying for the free account or up to £9.99 a month. So it calls itself the accounting bank because it counts and combines banking and accounting for business. And the inevitable, because it's a great idea, I inevitably went online and checked things like Trustpilot, and I found one piece of coverage saying that Counting Up isn't officially a bank, so your deposits won't enjoy the standard £85,000 protection that comes with the FCA. SCS, the Financial Services Compensation Scheme. Now, so I was interested in the free, I was interested in the quick, I'm interested in integrating my banking with my online accounting. So that would save me doing a direct feed from my Xero, uh, account to my HSBC and back again. And so I could save a whole step So from a PR point of view, I have thought that's a great proposition, but there isn't a lot of supporting evidence online to make me feel comfortable and particularly happy about taking that step. So I'm influenced here by the cascade theory of Watts, which I've mentioned before in our blog on how Captain Tom became a global sensation. And the cascade theory of Watts and other people, including Dodds-Archer, shows that the, the importance of influencing people to get viral PR is to reach out to people who are easily influenced, because it's through these people that you can get great PR. Now, counting up, they've got a lovely narrative On their website, and the the issue though for me is that I don't see the the conversations online creating for me a cascade that's reassuring me about what I should do with my money. Of course, one of the things that I look at when I'm looking at the anything is price, and so I have decided to record a video. Uh, on my website, and I have included on there an explanation of why we're now publishing our prices online. Now, most professional services firms eschew putting their pricing online because, you know, let's have a conversation, because, you know, you don't buy on price, you buy us as service providers. But we recently lost a piece of business in Singapore, and I asked the the company always why we win and also why we lose. And this official business organization in Singapore, they kindly wrote back to me saying that actually all the proposals met the requirements, which makes sense because all agencies meet the brief, otherwise they wouldn't be there. But the other agencies had been more competitive on price and added in more things that were going to be Uh, you know, part of the package deal. Now, agencies like mine, we all spend time and money building these proposals for clients and trying to differentiate, but we also have to compete on price. Now, I decided that what I'm going to do and have done is I've published my fees online because actually people need to decide fairly early on If they can afford the services I'm offering, or like counting up. Do you want to pay nine pounds ninety-five for your banking integrated with your with your finance app? Because as Herman Simon says, who is the considered to be the father of modern pricing, the ultimately the consumer or the customer is only willing to pay for the value that he or she gets. So if I look at counting up and I say for nine pounds ninety-five am I getting value? Quite probably. If people look at my website and they say, am I getting value from this agency? Then I have to hope that they say quite possibly. Now, what we know is that this customer in Singapore that used to be a customer then moved away from us and purchased based on price last year and were unhappy, in fact, with the lower-cost provider they went for, because what they found was, as is so often the case, you get what you pay for. Now, what Herman Simon goes on to say, and I can recommend his book, it's called— author of it, it's the book is called Confessions of a Pricing Man: Price Affects Everything. Not only does he say that ultimately a customer is willing to pay for the value he or she gets, but he goes on to say that the only fundamental driver of willingness to pay is the perceived value in the eyes of the customer. The important word there is the perceived, and often in public relations we talk about perception management. That used to be a phrase that I believe Adelman or someone like that coined. So the perceived value of your business and your offering is really what people are going to pay for. Now Herman goes on to create, uh, to give an illustration, and he talks about what he calls the second-order effect. And this is something that in public relations we almost never talk about, and nor do we in advertising. We go for the primary-order effect, which is the— if you buy this, what do you get out of it? The secondary-order effect is much more powerful. And he brings the case of the air conditioner that was being sold for trucks. And there was a company making premium quality air conditioners, and they were losing market share to the companies that were making low-cost air conditioning units. So they commissioned a survey, and what they found when they did the survey from the buyers of these air conditioners— the expensive trucks were buying the expensive air conditioners— and what they found was the real value was the reduced number of sick days of the drivers due to fatigue In their heated cabins, so the poor air conditioning was basically reducing the quality of the environment for the drivers. They were then able to drive less distance, and they were taking more sick days. So the proposition for that air conditioning company became not buy us because we're low price and we can compete, but buy us because actually. The performance of our components are higher. It costs more to buy because it's better quality, and that will keep your, your drivers healthier because there will be less downtime on the air conditioning. So it's the secondary order effect that became the marketing message. So let's think about, let's think about your PR, and when you're talking about the primary order effect for your Business. Often in PR, people look for an agency and they say, "I want to get noticed," and how much does that cost? Now, that's normally the primary order. The secondary order is that they want to get a new contract, or they want to look good, or they want to get something else. And this is what Paul Dunn of the B1G1. Talks about, which I mentioned in an earlier podcast, is the so that question. As you're looking at your marketing and your PR, if you have issues with your product in terms of marketing, can you extend the value by saying we provide this quality, this value, so that you can do this? Now today I spent 3 hours making a video of the Speak PR program. And the Speak PR program is a 5-stage methodology that I've developed for entrepreneurs and business owners to be able to manage their own PR because they may or may not be able to afford an agency. When I went to make the video today, I wondered what's the perception of value that I am giving when I do my promotion and when I make my video. So I've invested in a high-definition camera. I've invested in Rode, the brand new Rode wireless microphones, so that the sound quality is perfect. I have a Rode desktop for here. I have the best MacBook Pro that I can afford because The lighting, the sound, all add value to the to my presentation, and I would like my my audience and my potential customers to see that if if I pay this much attention to what I am delivering and how I deliver it, I would deliver that much value to them. And the secondary order is that their business. would then improve, their career would then improve. So the importance of lighting, sound, and I also took a tip from Brian Hill, who I mentioned on the podcast earlier, was about the importance of hands. So I took the camera back and I made sure that I'm filming my hands as well, so that it's not just a talking head, it's also about my whole body. Because if it's true that our hands send the most messages, then if I'm if I'm giving a presentation, then not only are my slides important and my voice important and the lighting, but also that people can see me gesturing. Now meanwhile, Andy Walter was busy working at the Progress Shed, and Andy shared their ambition for building their company. As indeed he was laboring hard to rebuild their offices. Now, um, as we've seen, ambition is, is a good thing. And if we look at the Counting Up website, there's a narrative about the ambition, and it's very compelling that Tim Foreacre and his high school friend, the computer science classmate Mike Mote, they have the ambition to build something bigger and greater than what currently exists. The problem is that it's not just the £9.95 and integrating my banking with my accounting software. It's the secondary order value that matters, because looking after my money, looking after my accounting, is only part of a much bigger picture. It's part of running my business too. So the absence of other people telling me that they're doing that already with counting up makes me a bit nervous. Now, on my way home, driving back from the 3 hours of filming of the Speak PR program, HSBC rang me and they said, uh, Mr. James, thank you so much for your compliments today to the call center. We We were wondering if you'd be willing to give a testimonial, if you'd be willing to talk to our PR agency Grayling as a bounce-back loan recipient that was applied for and delivered through HSBC. Well, of course, I'm in PR. I can see the value of PR both for myself and for HSBC. I'm not embarrassed about taking the bounce-back loan because I think it's a very prudent thing to do from a business perspective. And if I can have, you know, an opportunity, an audience with HSBC and East West Public Relations being seen together, then obviously that's potentially good PR for me. And plainly, you know, they must be desperate, but they're, they're obviously thinking it might well be good PR for them too. And I have an interesting story because I've been overseas for 25 years and I've come back, and the timing of this is all It was all a bit of a challenge. So the, the HSBC speed of solution has been really very beneficial. So there's a narrative that I'm weaving in, and I mentioned to the lady from HSBC that I'd be happy to share. So the, the secondary order value of working with a bank like HSBC is the reassurance that my funds are going to be safe the continuity of where my business currently resides, but also the halo effect that can come with a large brand. As you plan your PR and you manage your communications, maybe look at what's right about a bank like Counting Up in terms of the offer, but maybe look at what is the challenge for a company like Counting Up when it comes to overcoming how they're communicating The secondary order value. I recommend Herman Simon's book. He says price affects everything, and it's not just the price, it's how willing are we to pay for the value that we get. But most importantly, as an entrepreneur or a business owner, how are you communicating the value that you're bringing to the company and the company is bringing to your customer or to your consumer? Thank you for listening to this episode of Speak PR. I pray that you're safe, that your businesses are profitable, and that you keep on communicating. Thank you. My name is Jim James.