Here’s an example of how two salespeople (let’s call them Kim and Jack) from the same company calling on the same types of customers can have such different selling experiences. One has highly profitable sales, the other does not. And it comes down to their pricing, which is at opposite ends of the spectrum.
Kim’s projects nearly always come in on the low end of the range. She typically quotes far less planning time, travel and implementation costs than her projects actually require. She’s concerned about her prospects’ budgets and feels squeamish asking for so much money. Her clients are always asking her to reduce her costs.
On the other hand, Jack’s projects are usually the highest priced in the company. He has no qualms asking for what he feels is a reasonable fee for what needs to get done. And he often pads the budget a bit to cover requests that might expand a project’s scope. His clients never blink when they see the price.
So why is there such a difference in these two experiences? Kim truly doesn’t understand the business value of her work. She just knows it costs a whole lot for her services and wants to be a worthy steward of her clients’ budgets.
Jack feels entirely differently. Over the years, he’s seen the impact his work has had on his clients’ sales. He knows that what he is asking is a pittance compared to the value his clients receive. And, because he knows that, he can confidently ask for more.
If you’re struggling with pricing, I suggest you invest some time researching the business value you provide to your clients. It’ll give you the confidence you need to win those highly profitable sales.
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Jill Konrath is the author of SNAP Selling and Selling to Big Companies. If you’re struggling to set up meetings, click here to get a free Prospecting Tool Kit.