Anyone who has been in sales has run into the situation where a prospective customer balks at the price or quote presented. A lot of time this leads to attempts to defend and justify the price.
Not only does this not work very well, it is also likely to come off as a series of excuses.
Value and Investment
Instead, when delivering an estimate or quote to a client, focus on the value being created. A price that is value-driven shifts how a potential customer views your quote or pricing and repositions it from a cost to an investment.
To do this successfully, you need to take the time to understand the prospective customer’s business. When presenting your proposed price, focus on the outcome and the value it creates. Frame the presentation of the price that “for X investment you can create upwards of Y additional revenue providing a return on investment of Z.”
Always Communicate Value
When you don’t really take the time to communicate and highlight the value being created, it is easy to lose deals or get a lot of pushback on pricing. This issue is further compounded by the fact that most large deals have multiple stakeholders/decision-makers involved in the process. Most of these stakeholders won’t be present throughout the conversation and the value you communicate will be changed or lost before all parties analyze the quote.
This is why it is critical to highlight the value and continue framing the price around the value it creates in all proposals and communications, enabling you to reposition the mindsets of as many stakeholders as possible to look at it as an investment and not an expense.