The Pricing Solution - Fractional C-Suite Retreat - Episode # 002

With plenty of experience working as a c-suite executive, today’s guest is the perfect person to talk about life in the c-suite. Luke Templin is the co-founder, fractional CFO, and profit first coach at a2 Advisors. He sits down with host Joseph Frost, and together they talk about new things that c-suites are facing and ways they can improve their businesses, like through the triple cheeseburger pricing model. 

 

Takeaways 

• Almost every business has an opportunity to do a subscription model, and that can provide a larger revenue stream. 
• The triple cheeseburger model; you have three prices where one is no contract and it’s the highest price, then a year contract and a two year contract with lower margins. 
• Pricing isn’t formulaic, it’s really an art form. People need to realize how to use this art form to make their pricing options better. 
• To decide if you are priced right, you need to look at your customer and notice what is important to them.
• Since fractional c-suites work with other businesses, they get to see what worked well and what didn’t work well with other businesses and only carry over best practices.
• A fractional CFO adds accountability to a company, typically most CPA firms are hesitant to give guidance but a fractional CFO will share their opinion. 
• 82% of businesses fail because of cashflow. Most owners understand their profit and loss statements well but they struggle to understand the cashflow.

 

 

Quote of the show:

 

2:17 “One thing we put together is, what I call the triple cheeseburger model. So you have three prices, essentially. You have one that's no contract and is the highest possible price. Then you have here's what a year contract looks like and how much volume you have to purchase from us. You go to the midrange. And then a two year  contract with lower margins. I call it the triple cheeseburger cause the triple cheeseburger was created in order to sell the double. If you pay attention it's all around us. If you look at Starbucks, it's a lot of pricing.

I call it gaming, but a large option. I don’t know what that at Starbucks is called, you look at the price difference between that and medium, there's not a huge difference and it's really not a huge difference in size either. And so there's a theory that people don't put into pricing. Most people think pricing should be some formula that should be very scientific, but to me, it's an art form." 

Links

• Twitter: https://twitter.com/luke_templin?lang=en
• LinkedIn: https://www.linkedin.com/in/luketemplin/
• Website: https://www.a2advisers.com

Ways to Tune In

• Amazon Music
• Apple Podcast
• Spotify
• Google Podcast
• Stitcher
• YouTube - https://youtu.be/cPXOhy5jpSI