Sales Hustle is now Sales Transformation
Dec. 2, 2021

#205 Episode 74 - Handling Pricing Questions Early on with Prospects

In this solo episode of the Sales Transformation Podcast with Collin Mitchell, he talks about pricing. When it comes to pricing, he explains what you should refrain from saying.

Stay tuned and make sure you don’t miss this episode to get more tips on how you can approach pricing.


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Transcript

[00:00:00] In the world of sales, you either sink or swim or breakthrough to the next level. My name's Colin Mitchell. And this is sales transformation, a new kind of sales show designed to bring you through the epic life-changing moments of elite sellers. So you can experience your own sales transformation.

[00:00:25] All right. Welcome to another episode of sales transformation. Today is going to be a solo episode where we are going to talk about pricing. There's a lot of different opinions about when it's appropriate to talk about pricing when not to talk about pricing, whether to give a range or not. And I want to dive into some of those things today.

[00:00:45] So I am a fan of talking about price. Early on. There's a lot of people that say, you know, you need to go through a thorough process of adding, you know, uh, of articulating your value and going through this, you know, rigorous sales process before you ever get to pricing. And I think that that can be a total waste of time for you.

[00:01:08] This. For the buyer and it can be extremely frustrating. So, uh, in a lot of cases, pricing can come up early on in the discussion and sellers sometimes don't know what to do a lot of times they'll say, oh, it's too early to, uh, tell you the pricing. Now. I'm not sure we need to have further discussions. We need to.

[00:01:31] Check this box and go to the next stage of my sales process before I tell you pricing. So I'm a big fan of giving a range. Now it's highly dependent on your product and your service, right? If you have some set packages and pricing, maybe your pricing is even on your website. If that's the case, if what you sell is a little bit more customized, then it's a harder question to answer.

[00:01:53] I get it. But wouldn't you rather know early on. If your customer or your prospect, this rather, uh, doesn't have the budget. You know, if you have a, you know, $10,000 service and their budget is only five, why waste any more time? I would rather lose or disqualify early, and then you can spend more time on the deals that are qualified, uh, and increase your win rates there.

[00:02:25] So yes, you need to talk about value so that they understand when you give them pricing. Um, you want to, you know, make sure. Full understanding of what problem it is. You're solving the vault, the, the value of solving that problem before discussing pricing, but don't dance around the pricing question. Um, also, uh, you know, so give them a range and it might sound something like this, you know, Hey, we have several different packages, but based on what I know so far, It looks like a service for you could range somewhere between 15 to 2,500 a month.

[00:02:59] Um, but I still need to learn more to find out. Does that sound like something that's within the budget for you? Um, and so that's a, that's a good way to answer. It gives them an idea in a range and a. That way you can figure out early on if like, does it not make sense to move forward or is that in the range that they're comfortable with to continue to have a conversation?

[00:03:18] Okay. Another key takeaway when you talk pricing, sometimes sellers will give the range or give pricing and then continue to ramble and talk because they get nervous or uncomfortable after you give them that. Range or that even more specific price depending on what your pre service or product is. Pause, let it sink in and see how they react.

[00:03:46] Okay. Pause for just a couple seconds after stating the price and it's, it will signal competence in your pricing. If you quickly talk fast and continue to try to spew the value after you. Uh, maybe given a range or a specific price. This is going to show that you are not confident in your product. So this is huge pausing after you give them that range or that specific price is very, very, very important.

[00:04:14] Um, and then you can just pose the question, Hey, you know, based on that, does it make sense for us to continue and move forward to the next step? Um, you know, honesty and transparency are going to go a long way. If they feel that you're hiding something or that you're not confident in what you told them, uh, it's going to be a struggle to move that deal forward.

[00:04:31] Uh, you know, later in the stage and you're going to probably waste a lot of your time and potentially a lot of their time as well. So hopefully this is helpful on how you can approach pricing. The next time it comes up in a conversation, even if it's early on in the process, I'm a fan of giving them a range, um, finding out early, if you know, if it doesn't make sense to move forward, it's going to save time for you and them.

[00:04:53] If you enjoyed today's episode, please write us a review, share the show with your friends. It really does help us out. Yeah. We are also always listening for your feedback. You can go to sales, transformation.fm, drop us a voice DM there, and we will get back to you. Hey, you stuck around that tells me you're serious about your own sales transformation.

[00:05:13] If you're tired of doing things the old way and want to get started in your journey with other people on the same path. Head over to sales, cast.community and crush your numbers on your leaderboard. Yeah. It's free sales cast.community. Send me a DM with your best pitch and mention this ad. And I might even give you free access to our best templates.