Mastering Sales Pricing Discussions

Set and forget is not a pricing strategy ! Price--> Design--> Build We know that's what everyone says, but thats an oversimplification of what the entire process should look like. The assumption your pricing was correct in the pre-design phase and doesn't need change is dangerous, dangerous, dangerous !! I have seen too many physical and software products change drastically between initial design to final delivery. Product owners will typically assume that pricing still holds. You have to change that philosophy. In the real world we need a lot more iteration in price: Step 1: Initial Price: This stage you quantify the value and set an initial target price. This is a combination of internal/external research, some value quantification and pricing knowledge. Step 2: Design: With that price info, the product team designs a product that hits product and profitability targets. This is also where you need to keep track of the product margins. Often product will go design a better product at the expense of higher cost, and margins suffer before launch. Step 3: Reprice: Now that we know the new design constraints that impact the profitability, this stage gives you the opportunity to reprice the product based on the design. If substantial value has been added, price should go up. Do not fall into the 'lets over deliver on value and keep price same' trap. Step 4: Build: Now with that new price info and product roadmap the product goes through the build stage. Step 5: Pre launch reprice : Now significant time may have passed since last price review. The market for the product, the economy etc may have changed. This stage can assist in making last changes before product goes out. Good time to also establish guardrails for price performance, discount strategy, or sales strategy. Step 6: Launch: Goes without saying the product is out in the real world. Great way to capture feedback. Also a stage where performance is measured against the price guardrails. Step 7: Reprice 3: Based on sales feedback, you start charting next steps. Selling too slow, you may need discount or reprice. Selling too fast, it may be overdelivering on price vs value. Pricing metric may need change. Fx may have changed. This is the price adjustment stage, should be annual or semi annual. You can incorporate these steps into new product introduction framework or annual or semi annual pricing strategy process, either ways it will help establish good pricing principles in the org. I know of many products that once designed were never repriced years into its life.. Surely things must have changed all those years... Think of Pricing as a lifecycle !! -------------------------- We are in #Pricingtribe.

Pricing shouldn’t feel like a fight. It should feel like a fair conversation between adults who both want the relationship to last. When costs keep rising and margins start to feel thin, the worst thing we can do is spring a surprise increase and hope customers accept it. The better path is to make small, evidence-based adjustments that people can understand, and to do it with enough notice that trust grows rather than erodes. Here’s how I guide teams through it... We set a simple rule first: price reviews happen on a predictable cadence, anchored to a sensible index, and capped so there are no surprises. Then we give customers a choice. A clear Good / Better / Best set of tiers lets people pick the value that fits, and it means we stop discounting just to “make it work.” For loyal customers, we start with a grace period and then move in small, scheduled steps. It’s respectful, and it smooths cash flow for everyone. We also swap blanket discounts for an early-pay credit that protects the list price while bringing cash forward. We add a few fair boundaries so small, urgent, or high-touch work is priced to match the effort. Where costs have increased in one part of the service, we re-bundle so value is obvious and buyers are never misled. And when it’s time to talk, we keep the message short and human: here’s what changed in our input costs, here’s the adjustment we’re making, and here’s what stays the same in terms of quality and scope. If you track a few signals for 30 days, you’ll see better results like: most eligible accounts receive the scheduled uplift, the overall discount rate falls, more invoices are paid early, average revenue per customer increases, and churn and NPS hold steady. The goal is pricing that is predictable, and defensible. Think caliper, not hammer, with measured moves that protect margin and maintain customer goodwill. How do you explain price changes to customers without losing trust? ------- ➕ Follow Jonathan Maharaj FCPA for finance‑leadership clarity. 🔄 Share this insight with a decision‑maker. 📰 Get deeper breakdowns in Financial Freedom, my free newsletter: https://lnkd.in/gYHdNYzj 📆 Ready to work together? Book your Clarity Session: https://lnkd.in/gyiqCWV2

I've analyzed 10,000+ sales calls and discovered something shocking… Elite closers NEVER discount when asked, "Can I get a better price?" While most reps panic and immediately cave, the top 1% have a completely different playbook 👇 Instead, they have a systematic approach that PRESERVES margins while CLOSING more deals. When you're quick to discount, you communicate TWO things that DESTROY trust: 1️⃣ "YOU CAN'T TRUST ME". They'll think: "Why didn't they give me the best price initially?" This makes them suspicious of everything else you've said. 2️⃣ "MY PRODUCT ISN'T WORTH IT". You're telling them you don't believe in your own value. If YOU don't believe it, why should THEY? Before using any strategy, run the objection through my H.E.A.R.T. framework: - H-ear them: "Cari, I appreciate the ask." - E-laborate: "Help me understand why you're asking?" - A-side: “Aside from the pricing, is anything else giving you pause?" - R-eclarify value: "What did you like most about our solution?" - T-ransition: Now use one of these 5 strategies... ➡️STRATEGY #1. THE REDUCTION CLOSE "Let's review everything in your package and remove what's 'nice-to-have' versus 'must-have.' Then we'll recalculate." You're NOT giving a discount. You're reducing what they're buying. Most prospects realize they want everything and end up paying full price anyway. ➡️STRATEGY #2. THE SUBSTITUTE CLOSE "I know we discussed Option X. Another option is Y, it does things 1, 2, and 3 but doesn't have 4, 5, or 6. However, it's $XXX less." Again, NO discount. Just a lower-priced alternative that creates value comparison. When they see what they lose, they often stick with the premium solution. ➡️STRATEGY #3. THE UPSELL VALUE GIVE "I can't discount, but I CAN include Premium Support for 30 days. Normally reserved for our highest tier and costs 30% more." The magic? They often upgrade after experiencing the premium feature! This is my personal favorite with the highest conversion. ➡️STRATEGY #4. THE 3 OPTION CLOSE Present good/better/best options BEFORE the price objection happens. When they ask for a discount, guide them to the lower option. This makes THEM decide between features vs. price. Instead of YOU deciding between discount or no deal. ➡️STRATEGY #5. FLEXIBLE PAYMENT TERMS Instead of cutting price, adjust WHEN and HOW they pay: → Half now, half in 30 days → Payments over 3 months → Net-30 instead of Net-15 One Fortune 500 client increased close rates 32% with this approach alone. ➡️THE LAST RESORT: GIVE TO GET If you absolutely MUST discount, NEVER give without getting something in return: "I can do 10% off if we add 5 more licenses." OR "I can do 10% off if you introduce me to 5 other business owners who could use our solution." You're conditioning how you do business AND maximizing value. — Hey sales pros, want to handle objections better? Go here: https://lnkd.in/g-uJ7ECX

Here’s a popular sales question that backfires. It usually comes out when the prospect pushes back on price: “What happens if you do nothing?” The prospect thinks, Here comes the cross-examination. They know the rep is baiting them into justifying the purchase. That creates resistance. Price is the last refuge when the prospect doesn’t see a meaningful difference. If they believe they can get the same thing for less, why choose you? Better to illuminate knowledge gaps. A few months ago, I got three bids to renovate my home. I told the most expensive contractor the other bids were cheaper. He didn’t justify his price or get defensive. Because when you rationalize price, you sound desperate. And he didn’t ask, “What’s the cost of hiring the wrong contractor?” I wouldn’t have known how to answer. Instead, he poked the bear. He asked questions that made me stop and think: “Did the other contractor mention what type of moisture barrier they were using?” “Are they using hollow-core or solid doors?” “What about the plumbing—are they replacing it or reusing your 16-year-old pipes?” Each question exposed a gap. Suddenly, the cheaper bids didn’t look so cheap. I hired him. He didn’t lower his price. He raised my awareness.

"Everyone says our price is too high" How often do you hear this? The sales team was hearing this objection in 8 out of 10 deals Management's solution? Create a "discount matrix" with escalating approval levels → The insidious pricing trap that's killing your margins: When everyone says your price is too high, the problem isn't your price It's your value narrative After reviewing their last 100 sales calls: - 70% of reps introduced pricing in the first 15 minutes - Only 10% discussed ROI or business impact - 0% connected pricing to specific customer outcomes We implemented a radical pricing communication overhaul: - Banned all pricing discussions before value establishment - Created industry-specific ROI calculators - Trained team on "price anchoring" to business impact Six months later: - "Price too high" objections dropped - Average discount decreased - Gross margins improved The most dangerous question in sales isn't "what's your price? " It's "why should I pay it?" Stop defending your price Start amplifying your value P.S. Do you want to increase your sales? Check out my featured section

How to raise prices WITHOUT losing customers. Raising prices is inevitable for small businesses. Here’s how to do it right: 1. Research & validate - Benchmark your prices against competitors. Where are you different? - Ask your customers what they value most about your offering. - Define a subset of customers to test pricing with before rolling out. 2. Segment & strategize - Give new customers a higher price while phasing in your existing customers over time. - Offer multiple pricing tiers based on features or service levels or offer discounts for bundling multiple products. 3. Communicate transparently - Don’t try to hide it. Give customers lots of advance notice, and clearly explain the added value/improvements you’re making. - Highlight your unique aspects, especially with customer testimonials. 4. Monitor & adjust - Regularly collect feedback through surveys, anecdotes, and monitor & respond to online reviews. Adjust if necessary. - Keep an eye on early-indicator metrics (e.g. sales calls booked, website traffic, support ticket volume) so you can act early to address any dropoffs. — If you found value in this post, give it a comment / like / repost so more people see it. Thanks for reading. Follow Michael Girdley for more daily business content ✅

Does putting pricing on your landing page help or kill your funnel? We ran a 60-day A/B test for a client. Real traffic. Real leads. Real consequences. Here’s how it went down: THE HYPOTHESIS: If buyers know the price upfront, they’ll self-qualify. Fewer tire-kickers = less time wasted by sales. That all sounds good but it also means less leads and more "Why are the leads down?!" emails. TEST SETUP: 🔹 Variant A (Control) • Standard demo request page • No pricing anywhere, classic “Talk to sales” vibes 🔹 Variant B (Test) • Identical page but added a full pricing table alongside the form • Clear pricing tiers, no surprises THE RESULTS: • Leads dropped 8.7% on the page • BUT lead to opportunity rates jumped 21.4% • Average deal size held steady • Net pipeline value? Statistically flat—within a ±3% margin Translation: You get fewer leads, but way better ones. The pricing filter scared off the browsers… but it attracted buyers who were ready to talk budget and timeline, not just features. Don’t hide the price. Lead with it. You’ll filter in serious buyers, and your sales team will thank you.

Let’s face it - at some point, you’ll probably have to raise your prices. 😳📈 At Pizzana, we did. With inflation, supply chain hiccups, and rising labor costs, there was no way around it. But here’s the thing: how you raise prices makes ALL the difference. The key? Communicate, communicate, communicate. 🔑 We were upfront with customers and paired our increase with new happy hours, smaller plates, and other options that kept the experience accessible for everyone. So if you’re facing this dilemma, don’t panic—we’ve all been there. Here’s how to raise prices without losing your customers: 📣 Be transparent. Share the “why.” People are far more open to change when they understand it. 👀 Check the market. If competitors are adjusting too, you’ll want to stay in line. Pro tip: never be the outlier—high or low. ✨ Add value. Upgrade menus, packaging, or service. If the experience feels five-star, the extra dollars won’t sting. 💡 Offer flexibility. Tiered pricing, smaller portions, or specials can soften the shift. At Pizzana, happy hour deals helped balance our price changes. When you raise prices with your community in mind, customers feel respected—and they’ll stick with you. Small business owners—have you had to raise prices recently? What worked, and what didn’t?

Rep hears "Your price is too high" and immediately starts building a discount proposal. Wrong move, folks. Price objections should be looked at as an opportunity for reconnaissance...not as rejection. Every time a buyer pushes back on price, they're telling you exactly what they're worried about. But most reps hear the words and miss the signal. "Your price is too high" could mean: - We have budget but don't see the value yet (47%). - We have value alignment but no budget (23%). - We're comparing you to something cheaper that won't solve the problem (18%). - I got burned by a vendor before and I'm risk-averse (8%). - I need to show my boss I negotiated (4%). You won't know which one it is if you just start cutting price. Here's a framework to help you diagnose this stuff: Step 1: Identify the objection type. Ask: "What are you comparing this to?" - "We're paying $X for [competitor]" -> This is a feature battle. - "We're doing this manually" -> Likely a hidden cost issue. - "Got a quote for half this" -> Probably apples to oranges. Step 2: Test for conviction vs. budget. Ask: "If we solved [their biggest pain], would this still be a concern?" - "No, we'd figure it out" -> Conviction problem. - "Yes, still can't afford it" -> Budget issue (explore phased rollout, timing, reallocation). Step 3: Surface hidden skepticism. Ask: "Has a past vendor burned you on this?" - "Spent $200K and it never got adopted" -> They're worried about implementation. Step 4: Route to the right playbook. - Budget-constrained = Payment terms, phased rollout, budget timing. - Value gap = ROI calculator, peer comparison, cost of inaction. - Risk aversion = Reference calls, success milestones, pilot programs. - Competitive comparison = Capability matrix, TCO analysis, timeline comparison. One team at Sales Assembly implemented something like this in Q2 of last year. Discount rate dropped from 34% to 12%. Win rate on "price objection" deals went from 28% to 54%. Same reps. Same product. Different diagnostic approach. Most reps hear objections and go into defense mode. They start justifying. Discounting. Selling harder. But objections should be seen as windows, not walls. When a buyer tells you what they're worried about, they're giving you the exact roadmap for how to close them. The reps who lose deals aren't the ones facing objections. EVERYONE faces objections. They're the ones who take "Your price is too high" at face value and start negotiating against themselves before understanding what the buyer is actually saying.

I noticed a consistent pattern while reviewing product pricing pages: Most brands think customers are evaluating value. They are not! They are trying to avoid making a bad decision. And when you give them only two options, you increase that pressure. Example: Small coffee — $2.50 Large coffee — $4.75 Now the customer is stuck. → “Do I really need the large?” → “Is the small too little?” The gap feels uncomfortable. So they default to the safer, cheaper choice. Not because it’s better. Because it feels less risky. Now watch what happens when you introduce a third option: Small — $2.50 Medium — $3.75 Large — $4.75 The decision changes instantly. No one debates small versus large anymore. They are comparing medium vs large. → “For just a bit more, I get the large.” And suddenly, the higher-priced option feels reasonable. That middle option wasn’t added to sell. It was added to the guide. This is how smart pricing works: → It shifts the comparison → It anchors perception → It reduces decision friction → It nudges customers toward the outcome you want Pricing is rarely about the number. It’s about the context around the number. Most brands optimize for margins. Better brands optimize for decisions. If you are building offers, look at how your choices are structured. That’s where the real leverage is. Save & share this to help your network. Follow Asim Khaliq for more business growth insights.