Impact Pricing Podcast

Memecast #49: Sales Should Not Own Pricing

Salespeople love them to death, however, it’s more important to them to close the deal than to close it at the highest possible price. In fact, if they stay and negotiate a little bit harder, they’re at risk of losing the deal. And if they lose the deal, they lose their commission. They lose the ability to reach their quotas.

So, for them, their incentives are a little bit askew from what our incentives should be. And when I say our, let’s say the company, the owners of the company, or us as pricing people, where we want to try to win deals at the highest possible price.

So, although salespeople are really selling value and they’re doing their best, in the end, price is just one of the many tools they have to try to close a deal and they’re going to use every tool they have.

So, I don’t think salespeople should own pricing.

“We want to try to win deals at the highest possible price.”

– Mark Stiving

Sure, we should give them a little bit of flexibility, a little bit of price authority to help them move deals along quicker, but to give them complete authority, probably a big mistake.

We hope you enjoyed this memecast. If you have any questions or feedback, please email me [email protected].

Now go make an impact.

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Tags: Accelerate Your Subscription Business, ask a pricing expert, pricing metrics, pricing strategy

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Mark Stiving, Ph.D.

CEO at Impact Pricing

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Managing Director at Wynnchurch Capital, L.P.

Stephen Plume

Managing Director of
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