I've been consuming some of Marcus Chans youtube content and I think it's pretty Op, wanted to get your thoughts, on it and potentially even add some value to your own pricing talks.
TLDR:
1- Never present if they are not 100% certain on your solution, you and your company
2- never present price until you are 100% clear on what happens next after the pricing.
3- Never present pricing if you dont have executive sponsorship when dealing with a complex organization.
4- never sell on price and only on value or else they'll just leave you for someone cheaper - it's a race to the bottom.
5 - Keep it wildly simple - no hidden fees or suprises
6- Present pricing LIVE - do NOT just send it to them in an email
7 - Provide context to ensure they understand all costs
8 - If you dont feel good about your pricing, neither will the prospect. you must believe in the pricing
9 - Never Negotiate via email.
10 - The best way to win these opp's is to run a refined sales process in which you are systematically eliminating all thesse objections before the price conversation
Here is the synopsis
1- Never present if they are not 100% certain on your solution, you and your company
- companies and buyers invest based on their level of certainty in the solution, you, and the company you represent
- if they buy purely off price, they'll leave you eventually due to price
- if they're uncertain, you missed steps in your process so GO back and uncover exactly what they are uncertain about.
2- never present price until you are 100% clear on what happens next after the pricing.
- if youre unclear what exactly happens next, your deals will more than likely stall
- imagin if they had to detail out step-by-step exactly what happens after priceing, what that looks like?
- This allows you to maintain control and to help lead the prospect through what happens next
3- Never present pricing if you dont have executive sponsorship when dealing with a complex organization.
- The larger the organization and enterprise opp usually means the more complex the opp
- complexity here=multiple buying influences
- you must uncover who the economic buyer is AKA the one who can release or shift the funds ( the one who can say yes regardless if everyone else says no)
- their executive sponsorship helps move deals forward and to a close
- if you present w/o exec. sponsorship to begin with, chances are good it'll stall
- it doesn't mean the need to be tightly woven into EVERY part of the process but only the key parts based on how they make decisions
4- never sell on price and only on value or else they'll just leave you for someone cheaper - it's a race to the bottom.
- selling purely on price absolves you from the core skills of actually being a great salesperson and leader.
- going in and just being the cheapest' as a strategy is not sustainable long term
5 - Keep it wildly simple - no hidden fees or suprises
example 1:
- $2500 one time set up charge
- $50/user per month for 82 users
- $2/user per month for fee#1 for 82 users
- $3/user per month for fee #2 for 82 users
- $250/month for XYZ fee #3
- plus local conty taces
- plus local state taxes
(or only including points 2-5 and then adding on the others at the end like a short change)
versus
- based on 82 users to help you achieve (desired result) and to eliminate (problem) for EVERYTHING, it's only $67,620 for the entire year.
And if they ask.. Any fees, taxes, setup fee, etc? -- ALL BUILT IN
noone likes to be suprised with fees and radical transparency builds trust as most reps are scared to drop a large number
6- Present pricing LIVE - do NOT just send it to them in an email
- doing it live either on a zoom call or phone call allows you to hear their instinctual response and so you can get the feedback livve
- this also allows you to reframe them again for the pricing which will increase your value
- you can gather their immediate impact from their body language and tone
- then you can help neutralize if necessary
- it does not have to be a long call - even if it's a quick 5 min call and review
- if you dont do this they could easily misunderstand what they read, interpret something incorrectly or even worse, they've forgotten all value you've discussed earlier so now you're way out of the ballpark.
- It's not about 'hard-closng' them on this call; its about seeing and understanding where they are coming from
7 - Provide context to ensure they understand all costs
- nothing has any meaning unless there is something to compare it too.
- ie. 'ok ms. prospect let me make sure im on the same page as you alright? so you currently have your admin manually track hours using google sheets, wich takes about 10 hrs/week to ensure it's inputted properly. -- 10 hrs/week times $15/hr = $150/week
- $150/week times 52 weeeks = $7800/year
- so it costs you currently $7800/year just to keep doing what you are doing, is that right?
- + that does not include the 10% error rates that's already occurring like you told me, right?
- + thats 520 hours in the year that your admin could be doing something else that would actually help you generate revenue instead of costing you...
- 'With our xyz software, it leads the industry being 99.99% accurate, is 100% automated, never gets sick, removes all manual work, and now your admin gets back 520 hours to help you generate more money.. with our platinum white glove program, with all setup fees included, it's just $625.month -- $7500 for the year'
8 - If you dont feel good about your pricing, neither will the prospect. you must believe in the pricing
- if you are scared to share the pricing, it usually means 1 of 2 things:
- you missed steps in the process and you can tell they are not bought in
- you don not believe in the solution or company you are selling. AKA you do not see the value in it
- you do not believe in investing that amount of money. aka you do not see the value in it. you must ask yourself - if I was the DM would i TRULY invest in this product or solution? You sell how you Buy. Cheap people attract cheap buyers and they expect it because that's how they buy.
You must Believe in the pricing and your level of conviction myst reflect your belief
9 - Never Negotiate via email.
- similar to rule #6 on presenting live, always get back on a call if they are wanting to shift terms.
- open the dialogue and embrace the conversation
10 - The best way to win these opp's is to run a refined sales process in which you are systematically eliminating all thesse objections before the price conversation
- when the upfront process is done properly it can make the back-end virtually objectionless.
- have a systematic approach to qualifying/ identifying pains and use cases and guiding them through to an obvious yes.
you can check out the video here.
I know it's been a saga but whatevs
Much love,
the kid <3
Watch the vid here - https://www.youtube.com/watch?v=cxAJhMYu9lI&list=PLPY3c-zRUYfRTdVHyqRlX_NlbwQGVbnP7
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