In our previous post we looked at the first steps of how you can maximize your price to quantum levels and still win the business. I recommend that you review these steps before we continue with the next and final steps in the sales process. REVIEW HERE.
Making Concessions
How many times have you offered an automatic discount before the client even asked? The truth is that we innately fear losing the deal and the resulting sense of rejection of our worth.
Be ready to negotiate. Many fear negotiating. It’s a part of the game. Learn to love it.
We all have failed in this category. We are asked to price our services or product to a potential buyer. We come back with a price that includes a discount – without even being asked to do so. What? Now we know better. When we give a price, we now offer a great value and at our price that we need and deserve for our hard work, expertise and the results we know that we ensue.
If and when the client suggests that our price is out of their budget, we MUST make a concession when discounting our pricing structure. If we do not, we will be sending the message that we were over-priced in the first place. These concessions could include more limitations of your time, less access to your team and support services, a lessor product as well as a myriad of other offerings that you would eliminate from your proposal if the price reduction was of interest.
When suggesting a concession, make sure you also explain the impact that less services or a cheaper product choice would cause. In some cases, the best choice is to suggest that the potential client seek other products or support that might better meet their needs. This is difficult to do and is a must for protecting your value, your pricing structure and your business profitability. In most cases, the client will still work with you after they consider their options. In the cases where they don’t come back to you, that is also fine and is often a hidden gift. We never want to take on business that takes our valuable time and is not maximizing our expertise and value.
Standing Strong in Our Value: The Art of Walking Away
Not every deal is a good one. Believe this fact and live by it. Standing strong in negotiations is key to holding your value. Many times, the best words to say to your potential client is that your product or services might not be the right fit for them. Tell them that you respect their decision and be willing to walk away from the deal. This is difficult – especially if you are trying to build a client base. However, doing work for break-even is a losing proposition. You are giving your limited time and unlimited talent to someone who doesn’t respect the value you bring.
When we have the courage to potentially walk away from the deal, we create an even greater platform for our future work. We send the message to others that we believe in ourselves. We also gain even greater confidence in ourselves and in our true value.
Closing the Deal
Deadlines for decisions are key. This is true for our personal lives as well as our professional platforms. When making an offer for your product or services, place a deadline for this pricing on your proposal. Remind your potential client of this date as well as the fact that pricing is subject to increases after that deadline. We want the decision to be made while it is top-of-mind. Allowing too much time to pass is detrimental to closing the deal since we live in a fast-paced world.
Another key factor is in keeping your offer simple. Complicated offerings and too many choices creates confusion. Don’t do it – even when you are tempted to provide a menu of choices. This will only lead to you spending a lot of time in pitching without the reward of ever closing the deal.
This is a hot topic for conferences and consulting work! Ready to create a platform for QUANTUM pricing for your business? Do you know that you are leaving money on the table due to uncertainty of how to increase your pricing structure? I’m ready to speak to your group. Let me partner with you and set an optimized plan that will be a win-win for you and your clients. Reach out to me and we will create this plan in short order. If you pick one area that will directly impact your profits, pick pricing. Let’s get this work done and start realizing the immediate results to your bottom line!