How To Discuss Price with a Sales Prospect

How To Discuss Price with a Sales Prospect
Facebook Twitter Email LinkedIn

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?

  1. State the price and say nothing more
  2. Sum up your value proposition, then state your price
  3. State your price, then sum up your value proposition

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.

The Pitfall
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:

  1. Prepare
    Practice stating your price and then closing your mouth. It’s hard to stop talking if you’re not prepared to do just that.
  1. Establish Value Way Before Price
    If at all possible, make sure you’ve had a value conversation – or more than one – before getting to price.
  2. Have a Safety Net
    Prepare a post-price statement of value that you can present once the customer has digested the price.

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

Evaluate your Performance

Toolkits

Get key strategy, culture, and talent tools from industry experts that work

More

Health Checks

Assess how you stack up against leading organizations in areas matter most

More

Whitepapers

Download published articles from experts to stay ahead of the competition

More

Methodologies

Review proven research-backed approaches to get aligned

More

Blogs

Stay up to do date on the latest best practices that drive higher performance

More

Client Case Studies

Explore real world results for clients like you striving to create higher performance

More