The Pricing Flinch - 6 Steps to Better Pricing Discussions

The "pricing flinch" is what I call that moment when a client asks you want you charge and you hesitate. Sometimes it's just a fraction of a second and other times it's lasts for what seems like forever. Usually it's followed by you stumbling around to say the price and present it in the right way.

It feels awful (yes I've felt it myself) and it's awkward. And not just odd for you, it can feel that way for the person on the receiving end as well.

Regardless of who feels it, the flinch can take a well-flowing discussion with a potential client and bring it to a rocky conclusion, even a grinding halt.

Let's take a look at why this happens and more importantly a few tips that'll help you avoid and/or better navigate the "the flinch" when it happens.

Why does "the flinch" happen

As you can imagine there are many reasons this occurs. Some are related to you understanding pricing and being able to communicate your value and prices effectively, you feel:

• uncertain about value of your offer
• unsure how to communicate the value
• insecure or uncertain about your price
• a lack of training

Others are related to your mindset and over thinking things, like:

• fear of rejection
• lack of confidence
• fear of losing the deal
• even you've (reached into their pockets and) decided they can't afford it

And last there's just simply a lack of preparation. Yes, most people don't take the time to think about how that conversation can / should go - and therefore don't prepare themselves for it.

Consider for a moment why this might be happening for you. Reflect on how it feels, what goes through your head and what physical sensations arise. As well as when it's happening. Like with specific offers, or types of clients or even when you don't get enough sleep. If you can identify why and when it's happening (i.e. recognize it), then it's easier to know what to do to remedy the situation.

Now let's take a look at the steps you can take to either avoid the flinch or better navigate the situation when it arises.

Let's look at the steps you can take to do it better

Step #1 - Understand why you're charging that price

Avoiding the flinch is largely about feeling confident about the prices you're offering. If you've guessed at what to charge, if you've just copied what your competition has done, or done what someone simply told you to do, then it's hard to feel certain that you're offering a fair price. That uncertainty will cause you to hesitate or stumble on your words when talking price with your clients.

It's a sense of knowing, that while that price may not suit everyone, that's the right price for your business. You know for the right opportunity it's a fair reflection of the value your service, product or software brings. When you understand why, i.e. the logical reasons, you charge that price then you'll naturally feel less fear when round talking about it.

Step #2 - Identify blocks related to money, success and worthiness

Most people have mindset related blocks in one or more of these areas that influence their behavior when it comes to pricing in their own business. For example if you've been raised not to talk about money, then having those conversations will be unnatural and uncomfortable for you. Identify the blocks and work on shifting your mindset to alleviate the challenges.

Step #3 - Focus on being of service to the client - not the sale

Of course you want to "close" the deal. But you may be overly focused on getting the sale. And that puts extra pressure on you. It doesn't feel great to the client either. Often you've leapt to the assumption that "I have to make this sale" without having assessed the situation. It's similar with a job interview, until you've interviewed them you don't know if it's the right company and job. Or that potential partner who you've decided is the "perfect person" for you, before you've really gotten to know them. It reeks of desperation and you hang all your wishes on that person.

Use the conversation to understand what they seek, if what your offer is a fit for them, and if you want to even work with them.

Coming into the conversation the right frame of mind, helps you engage in a more authentic way with people. The pricing discussion will happen more naturally if it's a good fit.

Step #4 - Allow the conversation to unfold so that they ask you what you charge

Do you feel nervous bringing up price? On the one had you need to get over that at some point. In the meantime try to structure your conversation in a way to leads them to asking you, as a natural next step in the conversation. They ask, and in a sense, granting you permission to do so. That can help you feel more confident about having the conversation.

If they don't ask, then be prepared to bring it up yourself. And sometimes you won't want to wait, just ask them what their budget is and naturally the conversation will shift to price.

Step #5 - Plan for how you can handle "no"

Take some of the fear out of rejection by planning for it. As a business owner you will hear no and that's not necessarily a bad thing - call it filtering, call it market research, what ever it takes for you to learn from it. Still at times it may feel deeply personal - it's not.

The fear you feel is partly related to not knowing how to respond. Explore how you can respond to the no, so that you can keep the conversation going. And I'm not talking here about defending your price with a list of arguments. It's more about exploring what's behind the no so you know how best to direct the conversation.

Turn that no, into an internal yes in your mind. The answer may still be no, but you can say yes because you know you did your best and you can use what you learn to improve. Then it becomes market research rather than rejection. Ha!

Step #6 - Practice so it feels more comfortable

This is a highly underestimated tactic. Let's say every time you have to say the price you stumble on your words. Practice that. Grab a trusted colleague and have them run through the conversation with you until it comes to you more naturally. Again and again and again, if needed. It's not about memorizing anything. It is about feeling more familiar with the situation so that the words flow more freely because you know what to say and feel comfortable doing so.

In conclusion

Pricing in your business can feel very personal and pricing conversations with clients can be loaded with emotional charge. The steps above will help you prepare you and approach the conversation in way to put you at more ease. And remember the more you talk about pricing and have these conversations with clients the easier it gets.