Pricing can be an emotional rollercoaster

For your sales team Pricing isn’t just about hitting the numbers

Pricing is an emotional issue for salespeople - it directly impacts them in several psychological and practical ways during the sales process.

1. Fear of rejection

Salespeople often fear that a higher price will lead to objections from customers or potential customers. This fear can create anxiety as rejection can feel personal.

Salespeople may not present the full value of their product or discount too quickly to avoid conflict, reducing their confidence in the sales conversation.

?2. Perception of value

Salespeople may struggle to believe that their product or service is worth the price, especially if they don’t fully understand the value or aren’t confident in how it’s positioned against competitors. If they feel the price is too high they may worry about seeming unreasonable or greedy.

This lack of belief can lead to ineffective value conversations, where the salesperson under communicates the benefits, leading to lost deals.

3. Pressure to meet targets

Salespeople often face intense pressure to meet sales targets. The higher the price, the greater the perceived risk of losing a deal, which can create stress and urgency to close at any cost - even if it means discounting.

This pressure can lead to emotional decision-making, such as compromising on price to secure the deal and avoid missing targets.

4. Customer relationship concerns

Salespeople build relationships with their clients, and the pricing discussion can feel like it threatens those relationships. They may worry that proposing a price the customer perceives as too high will damage trust or rapport.

So they may shy away from pushing the conversation about price or feel discomfort when discussing pricing adjustments, especially with long-term clients. They become the customer’s friend.

5. Uncertainty about market positioning

If the salesperson lacks clarity on how their product or service is priced relative to competitors or market conditions, they may feel uncertain or defensive during pricing discussions. Not knowing whether the price is justified in the customer’s eyes can lead to self-doubt.

This uncertainty can cause hesitancy or over justification of the price during the conversation, diluting the value proposition.

6. Discounting as a comfort zone

As we know many salespeople fall back on discounting as a way to close deals quickly, it feels like a safer or easier route to winning the business. It’s an emotional shortcut that avoids difficult pricing conversations and objections.

Over time, this will lead to lower margins and lower profitability, while reinforcing the salesperson’s dependence on discounts as their main selling strategy. It will also condition the customer to expect discounts – and they’ll continue to ask for them.?

7. Negotiation tension

Negotiating price often involves back-and-forth discussions that can feel confrontational. Salespeople who dislike conflict or negotiation may feel uncomfortable with the perceived tension around pricing conversations.

To avoid tension, salespeople might rush through the negotiation or accept lower prices or other conditions without fully defending their position.

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Here are some ways you can help manage these emotional situations;

1. Understand the product’s value: Confidence in the value of the product or service allows the salesperson to present the price with conviction. Training on value-based selling will help address emotional insecurities around pricing.
2. Practice pricing conversations: Practicing difficult pricing discussions in a safe environment can help salespeople feel more comfortable and prepared for real-life scenarios.
3. Focus on long-term customer relationships: Emphasising value and outcomes will help salespeople move the conversation away from the numbers and onto the customer’s needs and outcomes and so reduce the emotional tension.
4. Use data, evidence and case studies to back up pricing: Presenting data and evidence on industry standards, the market or the ROI of the product/service can give the salesperson more confidence during price discussions helping mitigate emotional responses.
5. Negotiation training and practice: Training the team on Negotiation and following proven process and methods will give the salesperson more confidence to navigate this area of the price conversation and more protect margin.