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The Power of Positive Pricing

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How to Talk Price with Your Customers

Pricing is often a scary and awkward topic to bring up. You’d prefer to talk about your services, how you can assist customers, or, frankly, anything else in the world. After all the hard work and excitement of attracting a potential new customer, pricing seems like such a killjoy.

But pricing is as essential to communicate as the benefits of your service. So when is the right time to bring up pricing, and how should you go about it?

In general, the best practice is to introduce your price as soon as possible. Your customers are only human: they want to know how much your service costs before they commit to it, and they want to know they’re getting a good deal. The sooner your potential customers know your price tag, the better. You don’t want to be wasting your time with customers who can’t come close to meeting your price ball park. Despite what many people may suggest, not everyone is a potential customer for you.

 

How to talk about pricing without scaring your customers off

First of all, stop thinking about pricing as something to hide from your customers. Rather, price is something you should highlight for the sake of your customers.

There are two points in time where customers need to know your price.

  1. At the very beginning, when they are trying to work out if they are even in the right ball park when it comes to your price.
  2. Right before making a purchasing decision, as they are weighing up the benefits against your cost.

At each point in time, the customer wants to know different information. At the first point, the customer is only looking for rough price range that your product or service will fall into. At the second, the customer will be after a more detailed price breakdown so they can weigh up your price against their budget.

 

What to say when your customer objects to your price?

If you provide the best product or service, and if you completely understand your customer’s needs, you will win the sales deal regardless of cost. But that’s not to say your customer won’t challenge you about the price tag.

Here are a few ideas of what you can say and do should you find yourself in this position.

  • “Is it really the price you’re concerned with, or are you simply looking for the best deal? If they respond with the latter, you can reframe the issue in terms of value. For the value, your product is the best deal – even if the price tag is a bit higher.
  • “When was the last time you bought something solely based on the lowest price?” If they’re truly looking out for their best interests, the answer is probably not recently (or ever). Point to other systems or products you know they are using as examples.
  • Remember that the mute button can be your friend. State the price and keep quiet so you can better understand their initial reaction.
  • If you have any freebies you’re authorized to offer, now is the time. Rather than offering a discount, this is often enough to sway the decision maker and get a signed contract in hand.
  • If the decision maker is still unconvinced even after you pull the final freebie lever, consult with your sales manager. But in general, if you’ve qualified the prospect correctly, price shouldn’t be an issue at this late stage. Take this as a lesson to discuss decision criteria more clearly up front.

 

Important things to remember:

  • Be clear about the value they’ll be getting for the price
  • If you are embarrassed to talk about price, think about how your customer feels
  • You’ll have to bring it up eventually
  • Not every customer is a good fit for your business

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