Sales teams resist your pricing strategies. How can you overcome their objections and boost performance?

To overcome sales team objections and boost performance, involve them in the pricing strategy development, clearly communicate the value and rationale behind the pricing, provide robust training and tools to support the pricing strategy, and offer incentives aligned with strategic goals. This ensures buy-in and equips the team to confidently present the pricing to clients.

Pricing is only one aspect of the equation. Price becomes less of an issue when you are creating value that results in net gains for an organization’s bottom line. A sales team may have to make minor adjustments to the pricing strategy based on the situation. However, it should not be a major deviation. Too many sales reps lead with price and quickly discount. Price should not be the start of the conversation. The goal should be to identify the pain or challenge the prospect wants to solve. Does the solution you’re proposing solve this? Does the sale make sense? Will there be a net gain by the transaction to the company. Helping the sales team sell the value to solve business problems will significantly lessen the concern of the price.

The first question I always ask is why. Why do they think the pricing strategy is wrong and then moving forward it is important to share the long-term vision.

I believe that overcoming sales team resistance to pricing strategies is essential for driving performance. It’s important to first understand the concerns of the sales team, as they may fear losing clients or missing sales quotas. Open discussions can help identify specific objections and build trust. Reinforcing the value proposition behind the pricing is crucial, as it enables the team to effectively communicate the benefits to customers. Investing in targeted sales training can equip the team with the necessary skills to handle pricing objections confidently.

You can often allay concerns about pricing by focusing on two talking points: -What's in it for customers -What's in it for sales teams Do be sure you have proper research around competitor pricing strategies as well as perceived value by customers.

The key to overcoming objections to pricing strategies lies in building confidence in the product's value. When the sales team can clearly articulate this value and demonstrate how it uniquely meets the needs of the target audience, price becomes a secondary concern, and often isn't even a discussion point. By reinforcing the brand proposition, providing comprehensive training, sharing customer success stories, aligning messaging, and empowering the team with the tools and confidence to convey the product value proposition, you can shift dialogues and gain support from your customers to become advocates for your product.

Price is only an issue in the absence of value. You can’t solve your customer’s issues if they don’t buy from you. When people buy, they buy you, the product, the company. Make sure all three are aligned and over deliver what you promise. Do this a couple times and the sales team will build up confidence and not resistance.

Ensure the sales team understands the value proposition to justify pricing. Highlight how high-value, differentiated products and services make customers' lives easier. Provide clear messaging and training sessions to build confidence. When the team believes in the value, convincing customers becomes easier.

In my experience, the best way to craft your value proposition is to create a draft, test it against your top reps, then have them test it with prospects after you've worked out the initial kinks.

Your sales team's ability to communicate the value proposition is crucial in justifying the pricing strategy. Ensure they understand how the pricing reflects the product's benefits, uniqueness, and competitive advantages. Provide clear messaging that links the price to the value customers will receive. Conduct training sessions to build their confidence in explaining why your product is worth its price. When the sales team believes in the product's value, they are more likely to convince customers as well.

To instill confidence in new pricing strategies, I've often created sales training with 3-4 examples of varying scenarios. We not only walk through those but we when exercise with a few examples in the pipeline.

To encourage your sales team to adopt new pricing strategies, adjust your incentive structures such as commissions and bonuses to align with these new goals. You might also introduce temporary rewards that are specifically linked to successful implementation of the new pricing strategies. This ensures that the team connects their personal financial benefits with the success of selling at the new price points, which can help reduce resistance to change. For example, if a company introduces a premium product line, they could offer higher commissions for sales of these products compared to standard products to drive focus and adoption among sales staff.

Think outside the box: reward the sales team for walking away from bad deals. I know it sounds counterintuitive, but hear me out. By incentivizing reps to say "no" to deals that don't meet specific pricing criteria, you're actually strengthening your overall pricing strategy. I've seen this work wonders in companies struggling with price erosion. It's not just about making sales; it's about making the right sales. This approach encourages reps to focus on quality over quantity, ultimately leading to healthier profit margins and more sustainable growth. Plus, it builds a culture of integrity where your team isn't pressured to close deals at any cost. It's a bold move, but one that can pay off big time in the long run.

The last time I rolled out a new pricing strategy, we benchmarked deals in the 3 months prior to execution and those 3 months after. We were not only looking at wins, but also measuring confidence and consistency.

Establish a feedback loop with sales. Regularly review pricing performance, market conditions, and customer feedback together. This keeps strategies dynamic and responsive.

It's great when Sales resist your pricing strategy; it creates an opportunity to hear their frontline experiences. However, we should recognize that Sales’ perspectives are often short-term, shaped by their quotas, comp plans, and recent deal outcomes. Think bigger—is pricing truly a hindrance? Maybe they're targeting the wrong segments less receptive to the price/value proposition. Make sure we holistically assess their objections. Conduct proactive pricing evaluations. Show that while pricing might not work for every deal, it can enhance win rates and revenue per deal in the long run. Build strong alliances with sales leaders on discounting and exception rules; without their support, your pricing strategy may falter.

Sales Leadership must first be bought into any pricing strategy change. Otherwise, incentives, motivations, etc will work against the goal.