Mark Wickersham argues most professional service clients aren't price sensitive, they're value sensitive. Only 20-30% of people always buy cheapest. The real driver is the gap between perceived benefit and price.
About 20–30% of society (per price psychologists/behavioral economists).
Put your hand up if you have price sensitive clients and this forest of hands would go up. And I thought that's interesting because that is the single biggest myth about pricing in our profession. You do not have price sensitive clients. And when I say that, people think I am mad. Mark, you do not understand my client base, but you don't. And the reason is because yes, there are price sensitive people in society. And price psychologists, behavioral economists estimate 20, 30% of society is price sensitive. But the definition of a price sensitive person is somebody always buys the cheapest. And that's not your clients. Your clients are what's called value sensitive. A value sensitive person looks at the value equation, which is, if I buy something, what is the benefit I will receive and what is the price? And the bigger the gap between the benefit and the price, the more likely I am to buy.
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