Impact Pricing Podcast

#391: Pricing Table Topics: 10 of Diamonds – Reveal the Price Only After the Value Is Communicated

This is the 10 of Diamonds from the Selling Value card deck.

You should reveal the price only after the value is communicated.

What happens is, when our buyers hear the price, at that moment, they’re making a decision. Is the price too high or too low? Is it worth it? What decision am I going to make? Am I going to spend more time with this?

Now, what typically happens is, imagine you’re going to buy a pair of Levi’s at the retail store, and you walk into the store and you see the price is $60. Well, no one communicated the value to you, but you probably already had a pretty good feeling for what the value of Levi’s really is to you. And so, you know if that price is high or low, and if it’s worth it to you.

But now, imagine you’re a B2B salesperson and you walk in the door and you say, ‘Our product is a hundred thousand dollars.’ And the buyer instantly says, ‘Don’t have the budget. That’s too expensive. Not going to buy it.’ And they don’t pay attention anymore. You are done working with that buyer.

“Make sure our buyers have a good understanding of what the value of our solution truly is before we tell them the price.”

– Mark Stiving

But if instead, we spent the time to say, ‘What problems are you truly trying to solve? What’s the value to the company if we can solve those problems?’ And you find out that the value to the company is truly a million or 10 million dollars. Then when you say the number a hundred thousand, they say, ‘Oh, that’s probably worth it. Let’s see if we can figure out how to do that.’ It completely changes the perception in the buyer’s mind.

So, what we have to do is make sure our buyers have a good understanding of what the value of our solution truly is before we tell them the price.

We hope you enjoy this example of Pricing Table Topics. What you just heard was done without a script. If you want to get better at speaking about pricing and value, grab a deck of our cards, pick a card, read the saying, then talk for one to two minutes about what the card says. You will become a better speaker and expert.

If you have any questions or feedback, please email me, mark@impactpricing.com.

Now, go make an impact.

 

Connect with Mark Stiving: 

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

Related Podcasts