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Don't start from the bottom
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Sometimes you need to start from the bottom up. Pricing is not when. When presenting 3 options for your customers to choose from, the usual way the proposal building gets approach is: Listen to the budget. Think of what could be built based on the budget and make a profit. Think of what the next thing could be built and make a higher profit. And build an even better one that would blow their minds (and be used as the high anchor). The thing is, it takes more effort on doing it so. It requires more and more things to keep adding and it also makes it tougher to justify price jumps on what could be done. Now, approaching it the other way around. What does it look like? Listen to the budget. And ignore it. The budget is a constraint to a self-diagnose. What they think they might need to spend, based on their assumptions (accurate or not). Now, focus on what they're really after: what's that big thing they would LOVE to achieve and put metrics (measurements+ judgement) to it. Think and design in broad strokes what that would look like. And price it. Then go to the lower end and consider the budget. Ask what could you build from that BIG picture at the top, for that budget. Finally, go to the middle and make something between those 2. Before you were anchoring in what "they could pay". After, on what "they want". |
Rod Aparicio
Get one tip, question, or belief-challenge that just might change the way you market, to help your customers buy. A *daily* email for b2b founders on improving your business —without the bullshit.
Pre-S. Influenza got me good this past week. Not fun having high fever sustained through days and nights. So, PSA, get vaxxed if you can. :) ------------ Giving your customers 3 options actually helps them. It gives your customers agency. That they are in charge —which they are— of what's next. It gives them a better view of your expertise and how you're thinking for them and with them. It makes the comparison easier between you and your competitors: it goes from "Why should i choose you?" to...
"It's too expensive. Nobody will buy this thing. The price would be too high." — Will . salesperson The price? $ 100 K. Here's the fun part, though: Without context it sure feels like a lot of money. It's 100 K, right? However, the customer is currently using an alternative for $ 200 K.PER YEAR. This 100 K? What it would be for the customer to pay. For 5 years. To them (the customer), it's comparing 1 million to spend in 5 years vs 100 K in 5 years. For them, it's 90% in cost savings. For the...
Going into a sales conversation to close a deal that might feel significant to you in terms of revenue doesn't mean it'll be the same for your customer. You need 2 main things: Be willing (and ready) to hear No. And follow up with more questions to understand, not to convince. Be willing to walk away. If it's not a fit, it's not a fit. And that's ok. It's just a number. Say your offer is 50 000 euros / dollars —and keep the straight face. The more you practice saying it out loud, the more...