3 Ways to Increase Value Perception Using More Impactful Communication

We underestimate the power of our words in so many ways. When it comes to Pricing in your business... communication can make THE difference. What you say and how you say it (verbally and in writing) has as much, if not more, impact on price acceptance than the number itself. At the very least, poor communication makes your job harder.

Imagine two lemonade stands: one says "lemonade 25 cents" and the other "lemonade 50 cents". Which one would you buy? If you came across two kids selling lemonade you might buy one of each to support them (assuming you had the ability to pay). Or if one was your friend you might feel more inclined to buy from one, as opposed to the other.

But what if the sign on the stand with 50 cent lemonade, also read "clean water included". This would immediately change your perception of what's offered. And almost definitely increase your willingness to pay for the 50 cent lemonade. It would call into question the quality of the 25 cent lemonade. And if you were in a location where clean water isn't the norm, you wouldn't dare try the other.

This is one example of the power of communication in Pricing. Let's look at 3 ways in which what you say can influence how clients perceive your value and the prices you offer.

The First Engagement

That first engagement someone has with you and your business has enormous impact. This is especially (but no only) true for service based businesses. Consider this, you're a Consultant out at a networking event and meet someone new. They introduce themselves and wait for you to do the same.

You say, "Hi I'm Sarah. I'm just a consultant." (maybe you even shrug your shoulders)

Or you say, "Hi I'm Sarah. I'm a consultant."

Neither one of these is the best introduction but one is a bit more impactful.

That little four letter word "just", simply kills how people perceive you. Yes, even without knowing anything more about you. It shows them what your perception is of what you do.

Depending on the tone of voice you used, you might be showing a lack of enthusiasm for what you do. Or maybe that you don't believe in what you do.

Does this impact what you can charge? Absolutely!

It influences their perception of you as a potential service provider or a business partner. And as someone who can help them solve the challenge they have. Introducing yourself in this way doesn't give them a good perception of value. Now you're in a position where you're going to have to work harder to "prove" your offer. It's also not terribly interesting - and doesn't urge the other person to want to hear more.

I used to work for a company that made "high voltage test and measurement equipment". Zzzzzzz - did you fall asleep? It's even worse in German "Hochspannugsmachienen und -ger?te." It sounds so boring to most people and they have no idea what it is.

I could immediately see their urge for an exit strategy as soon as I'd say it.

What did I do, I changed the message. When asked what the company did, I'd tell people "we make lightning". And we did make machines that simulate lightning strike conditions. I could literally see them lean in with interest. It gave us both energy (no pun intended). They'd almost always say "tell me more" or "what does that mean" - which gave me the opportunity to continue. To continue to build rapport.

Don't underestimate the power of your words when it comes to such interactions.

Start off in the right way and you won't have to "catch up" and work so hard at it later on.

Delivering the Price

One of the things that makes me cringe is when I ask people what do you charge and they say "It costs XYZ." I've even seen people title their written offers with "cost estimate" and send it to the customer. Why is that cringe worthy? If you think of your prices as "costs" then so will your clients. If they only see what you offer as a cost, they will not be willing to pay much for it.

Call it a price. Call it an investment. But by all means do not refer to your prices as costs - in my book that warrants 1000 lashes with a wet noodle.

There are different ways in which people's communication skills weaken the perception of value and therefore price acceptance. One is not being able to confidently respond to "How much do you charge?"

This can be tricky in some businesses. Yet it's a question you get all the time. Often the price depends on the scope of what you're offering. You may not be able to give a number at the time (or want to). There are many ways to answer the question even when you need more information first.

What can kill a sales conversation is responding with "Umm...." while you're fumbling around for what to say.

That sort of hesitation or show of uncertainty raises alarm bells in the customer's mind. And it's easy to find yourself there especially when clients ask for something new or outside the ordinary.

I can confess I've gotten caught off guard myself a few times over the years. Yes, just because I'm a specialist in Pricing doesn't mean I always get it right in my own business. It happens. And when I've made this mistake, I can literally see the dynamic shift in the conversation. It breaks rapport and you'll have to work to re-establish it.

Handling Objections

"That's too expensive!" Three little words most business owners try to avoid hearing. How do you respond to this? Most people I speak with launch into trying to defend their price. In my experience this is much less effective than you think.

Consider the last time you were in a conversation with someone - you were buying and felt it was too expensive. When you said "It's too expensive", what did you mean? This phrase is used in many ways. Mostly to either shut the conversation down or as a way to say you don't see the value in what's being offering.

At the time you said it, the other person didn't know what you really meant. And if their default was to go on the defensive and explain the 5 benefits of the offer again, you probably were annoyed (at best). And wondering why this person was pushing so hard.

Now imagine that's what you're doing to your client prospects. This is often where people lose the sale. The better tactic is to find out what they really mean. So that when you do respond you know what to respond with. Wow, right? Think about it, your response is based on you assuming they don't get the value and need you to explain it to them. No one likes to be explained to, especially when they didn't ask for it.

What Can You Do?

There are many more examples of pricing communication blunders. My goal here is to help you be aware of some of the most common ones so that you can make sure you're not doing these things. You're probably wondering what you can do.

These communication blunders happen for two main reasons. Either a lack of awareness or a lack of preparedness.

For example many people, especially women use diminishing words like "just" out of habit. Subconsciously, you're trying to soften the blow of your message. In the context of your Pricing it's working - but against you. Unaware, you'll continue to use it and wonder why things aren't working the way you want. Your goal is to become aware of what you're doing that's working against you. Hence this article to get you started. Start noticing the language and tone you are using.

(note: I learned about diminishing word patterns from Tara Sophia Mohr and her book Playing Big. Be sure to check it out.)

Only once you're aware of the problems can you work on them. And in my book, the best thing you can do is prepare yourself. Here's the thing. When you don't feel confident or you feel uncertainty - then these little things trigger you. Someone objects to your price and you start to panic. This is usually what leads to unnecessary discounting. In panic mode the cognitive, thinking part of your brain doesn't function well (or at all if the trigger is big enough).

If instead you've prepared what you want to say in certain circumstances. And how you want to respond in specific situations, then you're less likely to go into that panic mode. You can think clearly and are less likely to do the wrong things.

Pay attention. Identify where you can change or improve. Prepare yourself.

PS: I've also got a podcast episode on the topic on. Check it out here