What to Do When Your Client Asks You “How Much?”
You’re about to state your price for a large sale that you want to win. Which approach to discuss price with a sales prospect is most effective?
What the Sales Negotiation Research Says
According to Research by Tel Aviv University, when it comes to sales negotiation, Option #1: State the price and say nothing more is the most effective approach when you discuss price with a sales prospect – especially for large deals. This is contrary to what many sales reps think and do.
Sales pros have learned from their first days on the job that price alone means little, that it’s significant only in connection with perceived value. So when stating price, it’s natural for many to feel the need to directly connect price with the value proposition of what you’re offering. But the research is clear that this isn’t the right time to do it. If you have followed any proven solution selling methodology, you should have already had value conversations from the first discovery call with the customer, and you can do so again. Later.
Action Steps to More Effectively Discuss Price with a Sales Prospect
Our sales microlearning library recommends 3 tips:
The Bottom Line
Too many sales people share pricing and then feel compelled to double down on their value proposition to close the sale and justify their price point. This is a mistake. Establish value early in the qualification process and share your price with confidence – and then stop talking if you want to increase your odds to close the deal.
To learn more about how to effectively discuss price, download The 2 Most Common Sales Negotiation Tactics to Prepare For
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