By Josh Slone
All too often we cringe when that great sales call switches gears toward budget and pricing. Today we’re going to break down some pricing strategy examples and show why you should be discussing it early in your sales funnel.
Maybe we take a deep breath or we start back peddling or rambling before spitting out those numbers… Well, it’s time we embrace the opportunity to easily differentiate between a potential client and one that simply can’t fit our cost into their budget.
The sales term BANT (Budget, Authority, Need and Timing) has been around for decades guiding millions of salespeople through those all-important discussions with clients.
While it may be slightly antiquated, there is an undeniable need to find out if the budget will be an issue with a potential client early on. After all, why waste your time (and theirs) if the lead is totally unqualified?
One of our biggest fears as salespeople is that we will discourage the lead if we instantly bring up price. Believe it or not, there is nothing taboo about getting the budget discussed and laid out in the open early in the conversation.
That said, it’s necessary (with some careful tact). If you aren’t currently doing this it’s time to embrace (not run from) the budget discussion!
Pricing Strategy Examples and 8 Tips for Mentioning Pricing Early
Getting product pricing into the discussion early helps you find prospects earlier and stop wasting time with those who won’t buy.
Here are 8 tips (along with some pricing strategy examples) for discussing budget early in the conversation and how to successfully handle objections to your pricing.
1. Be confident in your product and pricing
If you aren’t confident that your services are worth the cost, who will be?
The number one objection to buying a new product or service is how much it’s going to cost.
As salespeople, we constantly hear price objections like “I can find this cheaper somewhere else,” or “I’m interested but can’t seem to understand why the cost is so high.”
The key is to convince your prospective client that the value of paying for your product or service trumps the value of keeping that money in their wallet.
You have 20 seconds to raise interest in a potential customer. Mentioning your price early on shows you are confident and fully believe there is nothing to hide.
There are many proven sales techniques for overcoming objections to price.
One that you may or may not have heard of is the “reduction to the ridiculous” sales approach.
Essentially, this technique is to help the customer see the value in the money they are investing. By doing a little math, you can break down the cost over a more tangible timeline, emphasizing that the pricing is more “doable” than they originally thought.
Here are some pricing strategy examples that demonstrate the concept:
Source:: Business 2 Community