Being strategic and using thoughtful sales pricing tactics can help you close more deals without cutting costs. And adding these tactics to your strategy isn’t hard. The key is knowing how to use them effectively. Here are some of the best pricing practices and how to make them work for you.
Framing your prices strategically keeps you closing deals without resorting to negotiations or discounting. And one of the best ways to do this is emphasizing time over money. Rather than focusing on cost, keep the prospect aware of the experience your solution offers.
Arash Asli, writing for HubSpot, discusses a study that showed buyers ultimately gravitated toward ads that mentioned time. This revealed that ultimately, time is highly valuable to consumers. It’s especially important because of its scarcity, according to one of the study’s authors.
“Time is a more scarce resource — once it’s gone, it’s gone — and therefore more meaningful to us,” explains Carrie Mogilner.
Preserve your pricing by expressing just how much time your solution will save for the prospect. Use storytelling to highlight how your offering will boost productivity. Identify time-zapping pain points that you can help eradicate.
You’ll be appealing to their value and motivations while keeping them from focusing on pricing. By the time you do talk numbers, you’ve demonstrated the time-saving value you can deliver.
Don’t compare your costs
Another one of the best sales pricing tactics is to avoid comparison when discussing costs. It may be tempting to boast about how your prices are lower than competitors. But Asli advises against this because comparing yourself can backfire.
When forced to compare, buyers “tend to focus on the competitive disadvantages — not your solution’s advantages,” he explains.
Your prospect will notice your lower costs, but they may also notice your shortcomings in relation to another solution. It may be significant enough that they are willing to compromise on price.
Your efforts may also invite concerns over the value of what you’re selling. If prices are notably lower than competitors, or if sales tactics center on cost, prospects may doubt the potential ROI. Industry professional Liz Wendling warns against letting low prices define you.
“Don’t allow your prices or fees to be the only point of reference available for separating you from the competition.”
And here’s what you should do if the prospect makes a price comparison.
Use data that supports pricing
Are you leveraging data and analytics as one of your sales pricing tactics? If not, you’re missing an opportunity to wow prospects without lowering prices.
“Neglecting data-driven insights can lead to suboptimal pricing decisions,” according to Vendavo’s Dave Cakora.
There are a variety of resources available to sellers who want to share data-supported findings with prospects. Consider highlighting findings from customer surveys, feedback, reviews, and industry reports, LinkedIn suggests.
Case studies can also be an effective way to demonstrate value and the ROI current and past clients experienced. And many prospects want to see them during their buying process.
SalesFuel research reveals that:
25% of buyers are willing to give their personal information to sellers in exchange for case studies and success studies.
Additionally, LinkedIn reports that 54% of B2B buyers engage with case studies when making a purchase.
Don’t be shy about using these resources during your next pitch. Remember that numbers are unbiased and can be effective at demonstrating your solution’s success and worth.
Keep these pricing tactics in mind as you approach future prospects. Don’t give in to discounting when you have so many opportunities to showcase the value you can deliver. Using these strategies keep prospects focused on what you can do for them and not how much things cost.
And when prospects do bring up pricing, make sure you’re prepared to meet their questions and possible objections. Take a look at these other tips for handling cost-focused discussions when they arise.
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