16 Rules of Pricing: How to Sell at Full Price
Every single salesperson has dealt with it.
It can bring massive stress - "Well, if I do it, I keep the customer but make my manager unhappy and don't hit my goals. But if I don't do it, the customer will walk away!"
It = giving in to prospects/customers asking for discounts.
So, how can we show prospects and customers how much they matter to us, yet still successfully present our price increase and make profit?
By knowing how to respond to price excuses such as...
The following training comes from my 46-page workbook for my newest masterclass, Pricing: How to Avoid Discounting and Sell at Full Price. Early access closes on 2/27 and includes an exclusive invite to my webinar, "Best Practices for Increasing Your Price."
For now, let's begin with this free excerpt - 16 Rules of Pricing!
Never...
1. "Ask" for a price
Why in the world would you ask for a price increase?
If you ask if you can take a price increase, the customer of course is going to say "no!"
How you deliver a price increase and the confidence you exhibit makes all the difference; this isn't about being arrogant.
?? Watch Never Ask for a Price Increase. Tell the Customer! (02:17)
2. Blindside your customer with a new price
Maybe you discounted your price at the end of the year to bring on new business.
You're worried about losing those new customers, right? Here's the thing:
The prospect or customer who pushes you on price is going to be the problem customer all the way through. Run from these customers.
If they don't see the value now, they aren't ever going to see it – and they will keep going after lower prices.
Read how discounting your price at the end of the year can be detrimental to future profits.
3. Hide behind your price increase by letting it be communicated in an invoice, letter, or email
Don't add insult to injury by blindsiding customers without explaining the reason behind the increase!
Tap here to access my 4 strategies to successfully presenting your price.
4. Try to justify a price increase using only the cost of raw materials and labor
5. Make a commitment such as, "This will be the only price increase for the next several years"
If the past two years have taught us anything, it's that nothing is certain. Trust is currency – don't lose it with your prospects and customers.
The greater the level of trust you create with a prospect, the less need there will be to have to negotiate to close a deal.
6. Mask your price as being part of an industry trend
?? Watch 5 Rules You Need to Know Before Presenting Your Price (05:23)
7. Lose your ground by not knowing in advance what is your "walk away" point
When you know your ideal customer profile (ICP), you save time and money, while also retaining quality customers.
Read the post below to understand why walking away can be your best option.
8. Allow the price increase discussion to become an emotional issue
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Always...
9. "Tell" the customer what is the new price increase
10. Support the price increase based on the "value equation" of what the customer is receiving
Your customer doesn't have a problem with your price being too high. The problem is they see the value you're offering as too low.
Tap here to create added-value benefits and improve your value equation.
11. Provide lead-time to the customer
12. Tie the price increase to the continued technical, quality, and confidence of what you provide
Oh no. One of your biggest buyers just hit you with this price objection:
"I’m increasing my volume with you. Therefore, you should be reducing my price, not increasing it."
When you know how to reassure the customer that quality and performance are the main drivers for the price increase, objections falter.
Read my 7 responses to common pricing excuses in the Pricing workbook.
13. Respond to a pricing objection you've heard twice with a question
?? Watch how to respond to "Your price is too high" (01:40)
14. Present the price increase as an investment
The price your customer is willing to pay is a reflection of the value you create.
Problem: a weak value proposition is by far one of the biggest problems salespeople have.
Good news: when you raise the value, you can raise the price.
Solution: take the time to really?listen?to what the customer’s looking for, and in turn create a value proposition wrapped around the needs that the customer has.
Salespeople who just listen to what the customer?thinks they want–and that’s what they offer them–are making a big mistake.
Remember: the value proposition is where you set the price.
Never state the price until you first have really?uncovered and exploited their need(s).
You?expand the pain?that they have. Pain or gain, you have to maximize that.
Tap here to create a successful value proposition to sell without discounting.
15. Communicate the new price increase with confident body language
Price is a reflection of the salesperson's confidence.
?? Watch The #1 Reason Salespeople Discount Their Price (00:18)
16. Have the pricing strategy developed before beginning the process
A successful pricing strategy doesn't just boil down to one thing. It includes:
Customers cannot be expected to pay a premium price until they understand the value you bring.?
There’s a lot to consider before you talk price, and I cover it all in my masterclass,?Pricing: How to Avoid Discounting and Sell at Full Price.?
See more of the full course contents?here.?
It’s our biggest masterclass yet, and still only $59–an incredible value for 13 instructional videos and an accompanying workbook.
If you've discounted your price more than $59, the course already pays for itself.
Even better: join our community of sales leaders in my All Access program to get monthly masterclasses, 1-on-1 coaching, on-demand training, and more for under $3 a day.
Until next month, great selling.
Directional Driller Senior. Management Specialist. Project Management and Project Supervisor
2 年Once I heard a Bussiness Manager talking with a Sales Manager in a hall. While de second was telling all the money they had closed for the saled services, the first cut him off saying _The only thing you did for close thouse bussinnes was low the price, now the rentability is bullshit_ and lesson was great, he said _you are blaided with the tree but you don′t prepare the earth for the forest_ and end with the muster lesson __NEVER LOW THE FUCKING PRICE_ ??
Business Motivational Speaker, Award-Winning Author, Business Strategist
2 年Mark Hunter my favorite is it not about price it is about adding value. If you focus on value you give the customer a reason to pay you more.
Leading Strategic Partners in the SaaS and Startup Space I Global Technology Partner Alliances I Growth Mindset I Successfully Transforms + Accelerates Sales Growth and Profitability
2 年Excellent!
Head of Strategy & Marketing
2 年Thanks for sharing Mark - this couldn't be more timely and relevant at the point of significant inflationary pressure most businesses are under right now
Sales Maverick\\ Fractional Sales Ops\\ Sales Coaching. Serving The SMB Mfrs. and Wholesale Dist. In The Contractor, Hardware, Industrial Markets. Faith-Based Coaching For Business, Sales, Ministry and 12 Step Leaders.
2 年One of your best works Mark!