--- title: Price Is A Signal description: It is absolutely critical that everybody in a client-facing role understand, truly understand, the importance and rationale about price. image: http://farm4.static.flickr.com/3081/3171595366_6822b180b1.jpg?v=0 --- ![Award Badge](https://49161231.fs1.hubspotusercontent-na1.net/hubfs/49161231/image%203.png) Award Winning, Amazon #1 Bestseller: The Revenue Acceleration Framework ![Lift Logo](https://www.liftenablement.com/hubfs/raw_assets/public/Lift-Theme-Dev/images/LiftEnablement%20-%20Logo%20-%20Reverse%20(2).png) HubSpot's Most Trusted Partner for Complex Implementations ![HubSpot Certified Badge](https://49161231.fs1.hubspotusercontent-na1.net/hubfs/49161231/image%204%20(2).png) HubSpot Certified App Partner ![Award Badge](https://49161231.fs1.hubspotusercontent-na1.net/hubfs/49161231/image%203.png) Award Winning, Amazon #1 Bestseller: The Revenue Acceleration Framework ![Lift Logo](https://www.liftenablement.com/hubfs/raw_assets/public/Lift-Theme-Dev/images/LiftEnablement%20-%20Logo%20-%20Reverse%20(2).png) HubSpot's Most Trusted Partner for Complex Implementations ![HubSpot Certified Badge](https://49161231.fs1.hubspotusercontent-na1.net/hubfs/49161231/image%204%20(2).png) HubSpot Certified App Partner ![Award Badge](https://49161231.fs1.hubspotusercontent-na1.net/hubfs/49161231/image%203.png) Award Winning, Amazon #1 Bestseller: The Revenue Acceleration Framework ![Lift Logo](https://www.liftenablement.com/hubfs/raw_assets/public/Lift-Theme-Dev/images/LiftEnablement%20-%20Logo%20-%20Reverse%20(2).png) HubSpot's Most Trusted Partner for Complex Implementations ![HubSpot Certified Badge](https://49161231.fs1.hubspotusercontent-na1.net/hubfs/49161231/image%204%20(2).png) HubSpot Certified App Partner ![Award Badge](https://49161231.fs1.hubspotusercontent-na1.net/hubfs/49161231/image%203.png) Award Winning, Amazon #1 Bestseller: The Revenue Acceleration Framework ![Lift Logo](https://www.liftenablement.com/hubfs/raw_assets/public/Lift-Theme-Dev/images/LiftEnablement%20-%20Logo%20-%20Reverse%20(2).png) HubSpot's Most Trusted Partner for Complex Implementations ![HubSpot Certified Badge](https://49161231.fs1.hubspotusercontent-na1.net/hubfs/49161231/image%204%20(2).png) HubSpot Certified App Partner # Price Is A Signal [ Doug Davidoff ](https://www.liftenablement.com/blog/author/doug-davidoff) Mar 15, 2010 8:23:04 AM It has always amazed me how selling organizations and salespeople deal with the emotional aspects of price.  If I were in a room with all the business executives and/or salespeople in the world and I asked the question, "How many of you would like to get more for your products and services?"  I'm pretty confident that 100% would raise their hands.  Yet, when you watch their behaviors *in the market,* I'd be surprised if more than 50% of them behaved in accordance with that desire. In the last couple of months, I've written often about price, pricing, and its importance in creating demand.  While virtually everyone claims to desire premium margins, I've come to realize that most people fall into three camps when it comes to getting a premium price: ![](https://www.liftenablement.com/hs-fs/hubfs/Team/commvalintelval.jpg?width=223&name=commvalintelval.jpg)In almost all cases, the underlying reason for someone falling in the second and third group is because [they focus is on the commodity being sold](https://blog.imaginellc.com/determining-price), not on the [value being created](https://blog.imaginellc.com/find-your-prescription-for-creating-value). Here's the thing - price is merely a signal.  It's the tangible component to what is, inherently, an intangible offering (your intelligence value is, by definition, intangible).  Charging a higher price is merely making the declaration that you provide a better offering.  Pricing is a choice, and buyers will buy a higher price if you back it up with actions.  Great companies get that pricing is *strategic* - not tactical.  McKinsey studied pricing in the 90s and found that a 1% increase in price led to an 11% increase in profits. It is absolutely critical that everybody in a client-facing role understand, truly understand, the importance and rationale about price.  Every business executive and salesperson should stop what they are doing right now and download [Todd Sattersten's amazingly simple, engaging and perceptive ebook on pricing](https://toddsattersten.com/fixed-to-flexible-the-ebook/).  Further you should read it consume it before the day is done.  While I've read a lot (too much really) about pricing, I've not come across anything that puts it in perspective as well as this eBook (it's also where I learned the tidbit about McKinsey's study). It's your choice - what are you going to do? 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