detectivegibbles

Sales Director

When presenting pricing...

When presenting pricing to a potential client/partner, do you give just one option that felt like the right solution?

Or do you list out other options/add ons as well in your initial proposal?

I've battled back and forth on this...Part of me says to give them what they want, then part of me thinks its worth tiering out some options (low, middle, high)...

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exec

Acclaimed Answer

Account Executive

I'm a firm believer in confirming requirements and making a recommendation on the best subscription before putting together a pricing proposal. the reality is proposals take time out of YOUR day and unless the prospect is fully qualified and ready to buy, it's not fair to you to spend the time on a proposal. before I put together a proposal, I confirm...
- best plan / licenses to start
- budget
- decision maker - are they in the loop / aware of this evaluation?
- timeline

from there, I can present a proposal that clearly says "hey, I heard you and here's what you need, why you need it and now let's talk about how we partner through the remaining steps of your evaluation to get this done by X date you mentioned"

detectivegibbles

Politicker

Sales Director

Love this. "Hey I heard you and here's what you need" - powerful.

Love your process, thanks for sharing!

CuriousFox

WR Officer

🦊

So I give one option and make a backup with the extras I think would best serve them.

ARRisLife

Politicker

Account Executive

I've also gone back and forth on this... and I end up with going with a few options. I've been surprised before and gotten feedback they felt higher options were the right fit when I pegged them as low tier.

I think this can help make it a conversation about what the right fit is, expose them to higher tiers they may grow into for upsell and ultimately takes a bit of the pressure off.

detectivegibbles

Politicker

Sales Director

I've had more success the last few weeks blatantly telling customers "We will not be the cheapest option and it's because we have a more thorough process that has associated costs to ensure the best possible product when it's delivered"

People seem to be very appreciative of this. Remain consultative and not salesy. Always helps!

Smithy

Politicker

Director of Sales

I try to find the right package and tell them why it's the best package when I put the price forward, in terms of reiterating how it solves their problems. I give one price and if they think it's expensive, then I start removing things to adjust the price and they soon come round.

detectivegibbles

Politicker

Sales Director

I've started using this response when they mention an expensive price...

Customer - "That's pretty expensive"

Me - "Expensive compared to what?"

This seems to open them up and tell the story of their experiences and how they got to that number.

Smithy

Politicker

Director of Sales

I like that, but I'd be careful that it doesn't anchor your price to what a competitor charges.

Mirroring is a good way to go. They say "that's pretty expensive" and you follow up with "pretty expensive?" they will fill the silence with their explanation and you'll normally get the info you need.

'THat's expensive' also isn't an objection, it's a statement, so we need to find out what's driving it and not try to objection handle it as that isn't a reason and they haven't said no; only made a statement.

detectivegibbles

Politicker

Sales Director

100% agree!!

Always need to get into the grit part of what their good and more importantly bad experiences have been.

Thanks for the feedback!

HarryCaray

Notable Contributor

HMFIC

I give one option but I put a lot of preparation into it so they know why and how I got to that number. That's why I try to push off pricing conversations until fairly deep into the sales cycle. I want them to know that if my company is the vendor of choice, and all else being equal they'd sign with us. From there I let them know I can make the economics work for them. I also put together a pretty extensive ROI model so they don't just see the price point and nothing else. I break down what all goes into the licensing structure, how I got to different points in the ROI model that are indisputable, and I have a vendor comparison tab that I wrap up with. That tab compares us against any other vendor strictly based on cost and benefit. That way they have an "apples to apples" comparison as much as possible.

detectivegibbles

Politicker

Sales Director

Love the "Putting together an ROI model" and then finalizing with the apples to apples.

I'm somewhat of the young guy within my team and all of our senior leadership is very old school. Many of them don't utilize salesforce extensively outside of quote generation.

CaneWolf

Politicker

Call me what you want, just sign the damn contract

If there are meaningful differences that mean it makes sense to present multiple options, present multiple options. But I think the multiple options for the sake of multiple options runs the risk of seeming like a sales game.

wHaTyAgOtCoOkInG

Catalyst

Solution Consultant

start with the most expensive package possible, then if they ask for a discount, ask what needs to be removed. When they act all perplexed and say nothing, we just want it cheaper, then you use all that info you found in discovery for negotiating

detectivegibbles

Politicker

Sales Director

I've certainly been upfront with my customers lately and it seems to be paying off.

"We won't be the cheapest, here's why" and it really seems to set their expectations to not ask for handouts later (which they totally still should).

ouroborus

Catalyst

VP sales

Hopefully, you have established differentiated value that is mutually agreed upon first. Once you understand the value you bring to the client the pricing is a whole different ball game. Then swing high with your ideal proposal and begin the negotiation.

StraightCashHomey

Politicker

Manager, Commercial Sales

One recommendation based on the fit of what you're selling to the needs. You better be sure you're actively listening and connecting the dots throughout the entire process though. End result: higher value. You do have to ensure buy-in through the customer's buying process though.

Beasthouse

Opinionated

Corporate trainer

im a trophy hunter not a machine gunner 1 shot between the eyes

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detectivegibbles

When presenting pricing...

17 comments

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