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Pricing Anchor

Most sales training courses will tell you to save price for the end of the cycle so you can have a defensible value justification summary prepared. That is a reasonable POV, however in today's market conditions and the pricing disparities that exist between competitors in many industries its important to qualify pricing expectations up front vs at the end to ensure you are not wasting everyone's time.


Agree or Disagree?


๐Ÿ”Ž Prospecting
๐Ÿงข Sales Management
๐Ÿค“ Sales Tech
4
BigMeech
WR Officer
+11
Coors Light Advocate
I agree. I bring up pricing before the POC, once we have a general idea of the scope. Not talking about a formal proposal, but I will say something along the lines of:

"Hi <name> I was doing some back of the napkin math on price and wanted to share with you now so you can have that in mind as we move forward".

I almost always use list price. If it is a serious project they may have some objections of course, but will continue the cycle with my high anchor in mind and will negotiate later.ย 

If they are just a tire kicker, they normally find an excuse to put the eval on hold at that point once they hear price which is fine with me, I don't want to waste my time.
GDO
Politicker
+6
BDM
I will not bring it up myself. But if they ask and I know de product and thus price, I tell them.ย 
Smithy
Politicker
+4
Director of Sales
I wouldnโ€™t have it in my plan to bring it up early in the process, but if they ask then Iโ€™ll give them a ball park figureย 

depending on how early it is, I may push back and telling them at that point.ย 

Iโ€™ve been in the call with CEOs who just jump in with โ€œhow much does this cost?โ€ Right off the bat and when that happens I just say straight out โ€œis price all thatโ€™s important to you?! If the price is what youโ€™re going to soley base this decision on without knowing what we do then I can save us a LOT of time here and just give you our standard price, is that what you want?โ€

normally said CEO gets back in their box at that point and, if not, they werenโ€™t gonna buy it anywayย 
Ma
Manofwar
Vertical VP
I love the CEO gets back into their box comment.ย 
Justatitle
Politicker
+7
Senior AE
100% agree and a ballpark after a valuable discussion has happened is also fair. If you have identified pain and made it clear you can help then usually they are fine with the price.ย 
2
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