Unreasonable Pricing Expectations

Mostly just here to vent to people who get it.


I'm in end stage negotiations with a VP of Sales who can't seem to understand our price point given he acquired our solution at a prior company almost 2 years ago.


For context, He's been internally selling our solution because of how great it was at a prior company, and everyone is bought in. He's basically told us were already sold in, the whole CXO team is closed on our solution.


The problem is he quoted our solution at a price point that's wildly off given the scope of their project. This being predicated on a prior deal, which brought this deal to my lap by way of prior relationship with our partner on the deal.


2 years ago, he got our solution for our lowest price point, with a critical SKU thrown in for free simply because it was a different time, a different leadership authorizing such, and a parent company who rolled the sub-company's deal into a broader supersede.


We've clearly outlined our prices haven't changed, and the package he's looking for is entirely the same and entirely accommodating of what they need. The only difference here is they don't get a bunch of free shit and discounts to match up what he internally sold, without any of my input or idea it was happening.


Am I the asshole? - I certainly do not believe this to be the case, and my leadership has my back and had a testy conversation with this VP of Sales who basically said they'd walk. (Which we're fine with at this point)


The hilarity of this fact is not lost on me... He admitted they hired a SME on our solution to start June 1st in alignment with getting this stood up. So as far as I'm concerned, they have absolutely no leverage here.


Anyway, First blood pressure raising negotiation in my short career and almost laughing at this point.


Rant over.

๐Ÿน War Room
๐Ÿ˜ค Conflict Resolution
๐Ÿคž Negotiation
7
CadenceCombat
Tycoon
4
Account Executive
I completely agree with you. Its on him for not including you in the process earlier on. Almost like your entire job is salesโ€ฆ

So many people donโ€™t understand this. Sales people want to shepherd and help clients navigate the deal exactly because of these situations.
TheColdestColdCall
Executive
3
Enterprise Account Executive
Exactly - I couldโ€™ve gotten ahead of this from the get go. ๐Ÿ™„
Justatitle
Big Shot
3
Account Executive
This is on him for not even asking what the price looks like, that said If you guys are fine with them walking you have all of the power. The VP that you are selling to has to go back with egg on his face saying "oh yeah, that budget I sold you guys on its actually this number and we either approve the budget or don't get the product" sucks to suck VP
TheColdestColdCall
Executive
2
Enterprise Account Executive
Exactly what my boss said - so we offered a good faith discount to drive close as we can to prior pricing but itโ€™s nearly double what he paid last time. Sorry not sorry.
Sunbunny31
Politicker
2
Sr Sales Executive ๐Ÿฐ
I cannot imagine basing internal conversations on something from 2 years ago without asking the rep if the pricing I'd seen before was still valid. "Hey TheColdestColdCalll, I'm interested in your solution. Years ago, I used it at another company and I recall paying $x. Would love to see what you can do for me here at this company, with the hopes that pricing isn't too different" - and then you have a conversation about the new world order and he won't have a shocked Pikachu face.
TheColdestColdCall
Executive
2
Enterprise Account Executive
Yeah the biggest issue here was an implementation partner brought this deal to me, and we didnโ€™t discuss price at all until we had a demo and a scoping call, annnnddddd here we are.

Iโ€™m very clear up front what โ€œrangesโ€ are based on what we know, and qualifying budget always comes from the first call.

Just a shame weโ€™re at this point - having this kind of conversation now. ๐Ÿซฅ
Sunbunny31
Politicker
1
Sr Sales Executive ๐Ÿฐ
I'm sorry, that's difficult. It does sound like you dealt with pricing once you knew what you were dealing with - and the customer's assumptions are on him. Tricky to help get this smoothed over so he doesn't look like an idiot at this company, however.
Maximas
Tycoon
1
Senior Sales Executive
Glad to hear that they'd walk ,and totally agree with you!
TheColdestColdCall
Executive
2
Enterprise Account Executive
I guess weโ€™ll see what happens in the next 2 days or so.
Maximas
Tycoon
0
Senior Sales Executive
Yup, let's just wait and see.
HVACexpert
Politicker
0
sales engineer
I had something similar brought up to me. There is simply no way pricing for ANY product is still valid from 2 years ago. Have they been under a rock lately regarding the state of the economy? Doesnโ€™t matter if itโ€™s milk, gas, houses, commodities, labor, freight, services, or devices. ALL pricing has gone up tremendously, and itโ€™s on him that he made such a promise he couldnโ€™t keep.
TheColdestColdCall
Executive
1
Enterprise Account Executive
Just blown away this guy thinks heโ€™s entitled to the same deal he got in 2021.
CRAG112
Valued Contributor
0
Account Executive
He quoted the price, you never did. Not your fault.
Now you have to work with him to make him look as good as is possible. But definitely don't offer any discounts.
He was just trying to game you for the same pricing. That's why it was a "surprise"
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