Mastering Sales Pricing Discussions

We were 25 minutes into the call when they asked: Prospect: “So… can we get some ballpark pricing?” Me: “Happy to share. Just curious - are we currently the vendor of choice? Or are we still in the mix with others?” Prospect: “We’re still evaluating about five different vendors.” Me: “Got it. And what are you evaluating us all on?” Prospect: “Mostly features and pricing.” Me: “Appreciate the transparency. Mind if I be blunt for a second?” Prospect: “Go for it.” Me: “We don’t like to win on price. We don’t like to lose on price. We like to win on product.” Me: “If you’re telling me we’re the best solution for your team, then we can figure out how to make the pricing work. But if you’re not there yet, I’d rather not pretend price is the blocker.” Prospect: “Fair. We’re still figuring out what we really need.” Me: “That’s what I figured. And that’s why I hesitate to get deep into pricing. If you’re still defining the problem, every number’s going to feel too high.” It shifted the energy. Too many teams ask for pricing before they even know what they’re buying. They want quotes before clarity. Discounts before direction. Numbers before need. But pricing only makes sense once the value is clear. So here’s what I’ve learned: Make sure you’re the vendor of choice first. Make sure they know what they’re solving and how you solve it. Then have those money conversations. That’s how you avoid racing to the bottom. And win on the thing that matters most... The product.

Here’s a popular sales question that backfires. It usually comes out when the prospect pushes back on price: “What happens if you do nothing?” The prospect thinks, Here comes the cross-examination. They know the rep is baiting them into justifying the purchase. That creates resistance. Price is the last refuge when the prospect doesn’t see a meaningful difference. If they believe they can get the same thing for less, why choose you? Better to illuminate knowledge gaps. A few months ago, I got three bids to renovate my home. I told the most expensive contractor the other bids were cheaper. He didn’t justify his price or get defensive. Because when you rationalize price, you sound desperate. And he didn’t ask, “What’s the cost of hiring the wrong contractor?” I wouldn’t have known how to answer. Instead, he poked the bear. He asked questions that made me stop and think: “Did the other contractor mention what type of moisture barrier they were using?” “Are they using hollow-core or solid doors?” “What about the plumbing—are they replacing it or reusing your 16-year-old pipes?” Each question exposed a gap. Suddenly, the cheaper bids didn’t look so cheap. I hired him. He didn’t lower his price. He raised my awareness.

As a finance practitioner, increasing your rates can be uncomfortable. But if value increases over time, you deserve to get paid what you’re worth. Here’s how to do it with tact. 1 - Announce in advance that rates will be increasing. No firm or client likes surprises, especially those that cost them more. Rather than spring higher prices upon them without notice, share many months in advance that higher rates reflect greater value and changes in the market. Of course, new rates must reflect the actual reasons. If they‘ve increased for no reason, don’t expect clients to willingly accept them. 2 - Offer a flexible ramp up period When increasing rates, consider doing so at a natural cutoff period — year end. That way, the timing isn’t arbitrary. It coincides with the calendar. In addition, give clients the opportunity to lock in prior-year rates. Explain that rates are going up, but if they’d like to keep existing rates for a grace period, they can do so. That may require executing an agreement now that will extend into the next calendar year. Work together can continue under the existing terms, extending out into the future, and then allowing adoption of new terms at a future date. This approach guarantees future revenue for you as a practitioner and brings confidence to partners that continuing work together won’t bring about an immediate rate premium. 3 - Be flexible and transparent Remember that advisory arrangements don’t always fit into neatly designed packages. Being inflexible forces the other party into a take-it-or-leave-it decision. That often doesn’t work well. Partnerships should center around trust and shared interests. Be open to different arrangements that address the needs of all parties.

Too many sellers negotiate with buyers who aren’t even sure they want the thing. Then they wonder why the deal dies. You’re not losing to price. You’re losing because they weren’t bought in to begin with. Last year I had a call with one of my favorite clients. She’s a rockstar. She’s been in my coaching program for a year and it’s changed her life. But now she wasn’t sure she could renew. Why? She just bought a house, money was tight, and she said she’d probably downgrade to the lower-tier plan. Most sellers would’ve accepted that. Said something like: “Totally understand. Let’s keep you in the silver plan. You can always upgrade later.” But if you’re a true servant seller, you don’t let money get in the way of what’s right for the client. So I asked her: “If money was no object, what would you want?” She closed her eyes. She thought about it. She said: “I’d want the full coaching program. And I’d want to be at the Mastermind.” Now I knew. She wasn’t hesitating because of value. She was hesitating because of cashflow. THAT is when you talk pricing. THAT is when you offer incentives. Not before. I told her: “If you’re truly all-in, I can help make the numbers work.” We ended up building a plan with 0% financing and spread payments—but only after she made a verbal commitment that THIS was what she wanted. - If they’re not emotionally and strategically committed to your product, do NOT lead with a discount. - Don’t offer free support. - Don’t negotiate against your own value. Because if they’re not 100% in? No amount of price cutting will save that deal. This works in coaching. This works in B2B. It works in software, services, enterprise deals. You MUST validate intent before negotiating terms. The most dangerous words in sales are: “Let me get you a better price.” Said to someone who’s only half in. So stop negotiating with uncommitted buyers. Don’t discount. Don’t justify. Don’t beg. Instead: Uncover the truth. Build the plan. Take down the deal. Close with conviction. Not with coupons. P.S. If you're an AE who wants to join my coaching program and work with me to get to $500k/yr+, book a call here: https://lnkd.in/gf3zQSPy

"All vendors look the same. We're choosing based on price." When prospects say this, most reps panic and start discounting. My client John didn't. Here's exactly how he flipped the dynamic. The real problem… You've been lumped into the "sea of sameness." This happens when your discovery was surface level and you didn't create a big enough gap between current state and future outcome. The isolation strategy… Instead of arguing, John asked: "What if all three vendors had the exact same price and contract terms? How would you decide then?" This forces them to reveal their real decision criteria beyond price. When they still stonewall… John used the mirror technique: "In your consulting practice, are you the cheapest option?" They said no. "What would a competitor have to cut out to offer you 50% less than you charge?" Now THEY'RE explaining why cheap doesn't work. Worse talent, bad service, no expertise. The bridge back… "That's no different than our industry. We all have similar cost structures. If someone's doing it cheaper, they're cutting corners somewhere." "Is that really a risk you want to take when scaling beyond Sweden?" The reframe… "You're not buying our service. You're buying certainty that the project works. Visas get processed, onboarding happens on time, no hidden surprises." Prevention is better than cure… The best way to avoid price wars is killer discovery upfront. Uncover current state pain, cost of inaction, future desired outcomes. When you create a big enough gap, price becomes secondary. Keep in mind, the person who wants the deal most usually loses. Stay detached. Be willing to walk away. You have two choices… compete on price and race to the bottom or compete on value and win TOP deals. — Want to see more of how my client John tackles pricing objections, check out our coaching session here: https://lnkd.in/gbBjgxxS

97 seconds into a discovery call, we got bullrushed. "How much does it cost? That’s what the decision-maker wants to know.” Steal our response: 1. What I Say: “Yep! We'll definitely cover pricing today. Honestly, there's a million ways an engagement could look based upon what you're trying to accomplish. To avoid throwing the kitchen sink at you, mind if we start with a few questions around the goals you're looking to accomplish in working with us? That'll give me enough to share a sense of what options I'd recommend and rough pricing for those." 2. The Underlying Psychology: You're in TROUBLE if you blindly throw up a dollar figure with zero context. But you also look salesy and difficult to work with if you REFUSE to share price. This talk track eases their anxiety about getting pricing while also re-establishing that I need context to avoid throwing up an unrealistic quote. 3. A Few Keys to Sharing Price: - Early in the sale, it's often better to give a range than a specific amount. - You can use a formal proposal as your leverage for getting the decision-maker to join a live call. - Have multiple packages? Recommend the one you think is best for them. This reduces their fear of messing up by spreading some of the decision-making responsibility from them to you (JOLT Effect) - Never let your personal financial situation impact your pricing confidence. B2B purchases are on a whole different scale than B2C purchases. --- How do YOU respond when you get asked about pricing early? 

How to raise prices WITHOUT losing customers. Raising prices is inevitable for small businesses. Here’s how to do it right: 1. Research & validate - Benchmark your prices against competitors. Where are you different? - Ask your customers what they value most about your offering. - Define a subset of customers to test pricing with before rolling out. 2. Segment & strategize - Give new customers a higher price while phasing in your existing customers over time. - Offer multiple pricing tiers based on features or service levels or offer discounts for bundling multiple products. 3. Communicate transparently - Don’t try to hide it. Give customers lots of advance notice, and clearly explain the added value/improvements you’re making. - Highlight your unique aspects, especially with customer testimonials. 4. Monitor & adjust - Regularly collect feedback through surveys, anecdotes, and monitor & respond to online reviews. Adjust if necessary. - Keep an eye on early-indicator metrics (e.g. sales calls booked, website traffic, support ticket volume) so you can act early to address any dropoffs. — If you found value in this post, give it a comment / like / repost so more people see it. Thanks for reading. Follow Michael Girdley for more daily business content ✅

“Can you do it cheaper?” A prospect asked me this last week. After 2 meetings… I’d mapped out a clear strategy for their LinkedIn company branding. They loved the clarity. But when they saw the proposal… They said: “Don’t you think this is expensive? Someone else quoted me less.” Instead of arguing, I asked a few simple questions. Because pricing isn’t about the number, it’s about the value you actually get. Here’s how the conversation went: (7 Questions you can ask to deal when they say “You’re Expensive”) ✅ 1. If I charged less, would you really pick me or the cheaper option you’re already considering? They paused. And said: “No, honestly, we feel more confident in you.” ✅ 2. On a scale of 1–10, how confident are you in their work vs mine? They said: “You’re a 9. They’re a 6.” ✅ 3. How long do you think you’ll work with them? And with me? They admitted: “With you, we see a longer-term partnership.” ✅ 4. If results take longer than expected, will they stay until the milestone is achieved? I promised: “If we don’t hit agreed outcomes in 12 months, I’ll continue working until we do—at no extra cost.” ✅ 5. Do you know exactly what their process looks like compared to mine? When I showed them my strategic roadmap for posting, positioning, and converting, they realized there was no comparison. ✅ 6. How much time, energy, and resources will you save with me handling this vs piecing things together yourself? They calculated it—and the “cheaper” option suddenly looked more expensive. ✅ 7. Finally: Do you want your brand to survive LinkedIn, or stand out on LinkedIn? They didn’t even have to answer. 💡 Here’s the truth: Cheap work costs more. Because it costs you your reputation, your time, and the opportunities you’ll miss. And yes—this was not a foreign client, this was an Indian client. They closed the deal within 5 minutes after that. Not because I lowered my price. But because I raised their perspective. Because LinkedIn is not about looking “active.” It’s about being undeniable. And if you’re the kind of business that values clarity over cheap shortcuts, you already know what the right choice looks like.

It’s easy to look at seasoned sales pros and think they’ve got negotiation down to a science. Truth is, we’ve made plenty of mistakes along the way. → Early on, I’d dive into pricing discussions while the prospect was still evaluating competitors. Rookie mistake. I learned the hard way that until someone’s fully committed to your solution, it’s too soon to talk numbers. → I’ve walked into negotiations without a clear bottom line, thinking I could figure it out as we went. That’s how you end up with deals that wreck your margins and come with high-maintenance clients. Never again. → And I used to skip past the most important question when pricing came up: “If we agree on price, what else needs to be resolved?” Failing to ask this has derailed more than one deal in my early days. These days, I lean on a few key principles:  1️⃣ Start every negotiation by anchoring to business value—if ROI isn’t clear, price becomes the sole focus.  2️⃣ Never negotiate until the prospect is 100% committed to your solution.  3️⃣ Set a walk-away price before stepping into the room.  4️⃣ Handle non-pricing objections before settling on numbers. My point? No one gets it right all the time. Mistakes are part of the process, and they’re how you learn. What’s your most painful negotiation lesson? Let me know 👇

Most AEs think negotiation starts when procurement shows up. Wrong. Negotiation starts in discovery. The deals I won at the price I wanted? I set them up in the first 15 minutes of the first call. Here's how: I quantified the cost of inaction early. Not at the end when they're negotiating. At the beginning when they're sharing pain. Example: Customer: "Our sales cycle is 9 months. It should be 6." Most AEs: "Got it. We can help with that." Me: "Help me understand the math on that. How many deals are in flight right now?" Customer: "About 40." Me: "And what's your average deal size?" Customer: "$50K." Me: "So if I'm doing the math right, every month your sales cycle stays at 9 months instead of 6, you're delaying $2M in revenue. Is that accurate?" Customer: "Yeah, actually more like $2.5M when you factor in Q4." Now fast forward to negotiation: Procurement: "We need 20% off." Me: "I understand you want the best deal. We established that every month you don't solve this costs $2.5M in delayed revenue. My product is $200K. Even at full price, you're ROI positive in 3 weeks. Does it make sense to delay this over $40K?" See what happened? Anchor to value. Not price. By the time you get to negotiating, the business case should be bulletproof. The lesson: Stop thinking of discovery as "qualification." Start thinking of it as "value building and defense." Every question you ask in discovery either strengthens or weakens your negotiating position later. Ask better questions early. Negotiate less later. P.S. These 7 strategies will help you CLOSE more deals in a GTM crisis: https://lnkd.in/d_DkYTSH