shuay

Producer

Handling a demo after lying about price

Have a demo tomorrow and my SDR lied about price. Not malicious-new sdr-they're not supposed to give out price. But the prospect was really pushing on the call and the sdr gave them a number (about half the amount of our most basic contract). On tomorrow's demo, how should I handle the price discussion given he's expecting something lower? Concerned bc on the recording it's apparent the prospect is very price motivated

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👨‍🌾 SDR

☁️ Software Tech

34 comments

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SlinginSoftware

Politicker

Account Executive

Personally, I would be addressing in an email before I get on the call.

I've had situations in the past when an ADR set up a meeting based on a specific functionality that the prospect needed for their project that we could not do... I'd send a very polite note addressing my concerns essentially saying:

"I reviewed the notes and I see you're looking to do XYZ. Full transparency, we are unable to do that. I want to be respectful of your time, but If it's an absolute deal breaker let me know and we can cancel the call. I'm happy to talk through these requirements on the phone tomorrow, but wanted to make sure I sent you a note explaining the above."

The above was done quickly and not a great email, but the general message I would try to get across. I'm sure you could craft something strategic - No point of getting on a call to get yelled at if they're going to be super pissed.

mitts2

Politicker

Account Executive

100%. Need to level set immediately and reset expectations. Be honest about it but come prepared with a range and then extra context on how your pricing works, what factors are incorporated in pricing, how you arrive at pricing etc.

If possible, try not to spend too much time here and move on to discovery and digging for the pain point. Will be telling if you have a real deal if they can move past the initial miscommunication.

UrAssIsSaaS

Arsonist

SaaS Eater

Ya I love this approach. Get everyone on the same page ASAP.

Sunbunny31

Politicker

Sr Sales Executive 🐰

I agree. I'd rather get it out there and who knows, maybe it will spark good discussion anyway.

dwightyouignorantsale

Politicker

Account Executive

I like this. If price is SUPER sensitive for them and the higher price is not even remotely in their budget, then don’t even waste their time. If this is a need that they would be willing to pay more for, then this is just another qualification metric. You don’t necessarily need to say “it’s going to be $X more than what my colleague said”, but instead you can mention that your colleague may have miscommunicated price (whether them being new, etc) so you would like to address where your company is actually at at the beginning of the demo.

InQ5WeTrust

Arsonist

No marketing, mayo isn't an MQL

Rip the bandaid off and give them a range straight away.

Hard to say more without knowing the context, but best not to waste too much of your time or theirs.

jefe

Arsonist

🍁

Definitely needs to happen before or right at the beginning - full stop.

You may be able to salvage it if they give you the time to demonstrate value .

DungeonsNDemos

Big Shot

Rolling 20's all day

Do your SDRs normally give out pricing? That seems like setting up the sales cycle to fail since you aren't there to provide any context or value.
It's hard to provide a recommendation without more context but I would head on address it and build your case around the value to their specific needs, same as any other demo.

You can throw the SDR under the bus and say they are misinformed and not allowed to give pricing

Do.it.for.the.checks

Politicker

Account Executive

Few things.

First anyone on here who suggested this be done via email is a shit salesmen. Pick up the phone for bad news (and good news and any other reason...). And do it immediately.

Second, Problems are just opportunities that haven't presented themselves yet. When you make the call throw the SDR under the bus, apologize and ask about their price expectations. Than drill into why? Is it a cash flow problem, is it market competition, do they not see the value? Unless your product team has no idea the value of your product you should be able to address or deflect these concerns and build strong trust in doing so.

Third, be willing to lose the deal. If they are angry or emotional, cut bait. No need to take the heat on a early stage deal. But again this can only really be understood hearing their voice, which brings to my last point...

Pick up the phone. Email, video, LinkedIn, etc. All have useful applications in your process. But good sales is done in person or on the phone. Never understood the fear of getting yelled at. I mean you can hang up, but you might be able to swing it with 30 seconds worth of effort.

Do.it.for.the.checks

Politicker

Account Executive

And Don't wait until the meeting. The purpose was to do X, dont burn half the time you need to do X by discussing Y.

If you can spin it and get a shot to show the value, but then nees to squeeze the value proposition into less time, you are setting yourself up for failure.

Control your agenda

Diablo

Politicker

Sr. AE

I would respond to the prospects saying hey there was a miscommunication by the new rep, give them an estimate and ask them if it would make sense for them to get on a demo.

Mistakes are made by all but correcting them before time is more important as these prospects also become an influencer/promoter in the future.

saaskicker

Celebrated Contributor

Enterprise AE

I would re-run discovery then rather than give a demo. Find out their pain, try and quantify it / see for yourself if your product is going to be worth it for them. It's not worth your time to give a product demo to someone who isn't going to be able to afford it, or if you can't point to specific pieces in your demo that are going to solve a problem/help them make more money in the first place.

avocadobegood

Valued Contributor

MM Account Executive

handle it off the bat - respect both their time and your own.

CuriousFox

WR Officer

🦊

Be upfront and let them know the SDR is new and didn't have the correct information. Spin it for transparency.

Justatitle

Big Shot

Account Executive

Be upfront and don’t shy away from it because that will just piss them off more. Level set. “Hey prospect, our BDR’s really aren’t trained on our pricing structure and may have set a false expectation, I wanted to be candid with you and let you know our average client spends x with us. If this is an issue I understand but I don’t want you to feel we wasted your time.” If they say to proceed go right ahead if they say there’s no way in hell then it’s an honest mistake and pry as friends. In cases like this you could even bring a manager in so it seems that you care and the prospect gets it.

goose

Politicker

Sales Executive

SDR's that give pricing under any circumstances should take a lap and stop running when I get tired.

LordBusiness

Politicker

Chief Revenue Officer

I was going to say, I’d email prior to the call and “clear the air”. Either the client is going to be cool with it (awesome) or they won’t and you save yourself the demo time to be more productive

cw95

Politicker

Sales Development Lead

Straight up honesty works best than making excuses.

dcarb

Good Citizen

Account Manager

I would address it first thing on the call and be very transparent. I think it's easier to verbally explain the situation than via email plus your will be able to gauge their reaction. We're all human...shit happens. If they freak out them fuck 'em. On to the next one. If they are really that focused on price then no harm no foul. It's not your SDR's fault...he's not supposed to give pricing and sounds like the customer put a lot of pressure on him to give a price range so I don't like the sound of it. Please give us an update on how things work out.

Mr.Saucey

Valued Contributor

Commercial Account Executive

I would do it on the call first thing. An email could allow them to back out and you won't even have a chance to talk with them.

sellingsellssold

Politicker

SDR

I would address the price when the prospect bring it up, go over the different plans and options about what their choices are. I would not bring it up if they do not.

DataSlangah

Politicker

SAE

I would get it out of the way first thing. Apologize and give them an accurate range. Find out if the price was a dealbreaker, and move on.

turtlefan007

Tycoon

Account Executive

If it's all about price for the prospect, it doesn't sound like it makes much of a difference if it comes from an SDR or you.

Agree with the other comments on here where it's best to bring it up early on, and then continue to add value.

If price is their only driver, they're probably a no-go anyway so don't feel too bad about it.

justatopproducer

Politicker

VP OF SALES -US

Yep, call whoever you’re meeting with so you dont waste their time. Mistakes happen espcieiclly with new people. Ik sure they will understand

cw95

Politicker

Sales Development Lead

How'd it go?

twothousandandchael

Good Citizen

Director of Sales

Be proactive and get ahead of it.

Send a thoughtful detailed email explaining. Google Service Recovery Paradox -- it is one of the most helpful mindsets to have IMO when something goes wrong.

Own it, and you'll be fine.

El_Duderino

Executive

Senior AE

Wow you must work at my company. Lol

Jimothy

Business Development Director

Someone has already stated it but SDRs should not be giving out pricing or if they do it should be vague and more of a range than anything. Send out a pre-call email to set the PAO and drop in some price qualifiers. If the prospect is price conscious and that is the only reason they are taking the call then you are going to have a rough meeting when it gets to budget discussions.

Coolhandluke

Senior Director Global Sales

Sell on value. Carry on without addressing price (as you should do anyway). Create the demand. Justify the value. That’s your job.

jmctee

Sr. Manager of Sales BDR/SMB

Hold the demo, and address that first. This will serve as a way to get in front of your prospect, and the issue. Sending an email before hand give your prospect a way out.

JaradayFuture

Account Executive

Thanks for sharing this situation. This is a common mistake that new reps make, which makes it a great opportunity to have them sit in on that call and learn how the process works - particularly how to handle pricing objections.

In regards to pricing, sometimes the best thing to do is to be honest. Let the prospect know that the SDR did not have a complete understanding as to how pricing is taken into situations because every situation is different. If the prospect pushes back - you got stay firm and flip the script as to what goals are they trying to achieve / what issues do they need to resolve that made them take your call. That's the best way to look professional, honest and interested in their situation.

wondersushi

Good Citizen

Account Manager

Time is up for your question, but generally speaking: if the prospect is very price motivated as you mentioned, then they’re certainly perceiving a very low value in your product/service.

They’re buying a commodity and the odds that a demo/disco (even a fantastic one) change that perception are low.

So this is good news for you:

- either you follow the great advices given in comments, and you straightforwardly address the price issue to quickly disqualify the opportunity (“OK I understand you won’t buy at our list price, really sorry but thank you and goodbye”), then you get more time to talk to other prospects closer to your ICP and offering higher chances to close a deal at list price

- or, as you already know the willingness to pay from this prospect and also the fact they’re buying a commodity, you get a mandate from your manager to offer an equivalent discount and close the deal as quickly as possible. A penny is a penny; and this client probably doesn’t care about the rest.

Always chase deals you can close.

Lysistrata

Good Citizen

CEO

Lied? Really? Did the SDR misquote on purpose or was it an innocent mistake? The choice of that word is concerning with regard to communication and relationships in the company.

GCK1890

Opinionated

Solutions Engineer

Do you guys not have a pricing page on the website? I'm guessing not. Definitely set the record straight and give your SDR a talk.

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shuay

Handling a demo after lying about price

34 comments

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