Framing Your Price. You need confidence to make a sale – and you need that same confidence in the product or service that you are selling. Most business strategies are designed so that customers are given the bare-bones option first, and then the business reveals what it can do for its Super Special, Super-Charged Retainer or its “Everything you ever dreamed of” package. By giving your lowest price first and then the higher price, you are cautiously approaching the customer with the idea that they should spend more for a complete service, but not convincing them which package is right for them or their business.
Consider this: which of the following statements is most impactful? You’ll save $1,000 if you buy marketing automation software. Or; You’ll lose 100 customers if you don’t buy marketing automation software. People feel much stronger about the thought of losing something. When you set up your business strategy, emphasize the possible loses if the customer does not take action now. In addition, set up your marketing so that the right package is presented first. Then, if necessary, outline what a stripped-down version of this would cost. Also, emphasize how much more difficult, time consuming, or unattainable achieving the customer’s goals will be if they choose the cheaper version. You’re not really changing anything about what you do. You’re just reframing the conversation.
Outline The Process. Every customer’s goals and challenges are unique, but that doesn’t mean you need to start from scratch when building a sales strategy. If you have a keen understanding of what you do, how to sell it, and how to package it, you should be able to create or customize an existing sales strategy to fit the needs of, and attract, any type of customer. However, this relies on your business having a repeatable and defined selling process. When questioning your customers, you should know:
- The goals, plans, and challenges of the customer
- Current customer metrics and key company information
- The cost to the customer of not doing anything to meet their goals
When building a sales strategy to target your desired customer, the strategy should include:
- Campaign goals
- Scope of services and benefits
- Success Metrics
With this framework in place and a defined process for gathering information, it will be much easier to put together a winning sales and marketing strategy.
Set Expectations. Once you have confirmed that the customer is a good fit for your business and the customer has requested more information and an estimate, you need to detail what the purchasing or contract phase looks like. The price estimate or sales collateral is the next step in the commitment process on the part of the customer. It should confirm everything you have already spoken about and solidify the deal.
There is no magic trick to selling. There shouldn’t be some big reveal. There is no tool for convincing and impressing. The price estimate or contract proposal is a confirmation, in writing, of what your business can do, how it will do it, when it will be completed, and why the customer specifically needs your product or services. It should be the final step prior to a contract being signed, and your business and the customer should both be confident that the deal will close – and soon.
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Dr. Elijah Clark (May 17, 2023). Pricing and Expectations [Web log post]. Retrieved from https://elijahclark.com/pricing-and-expectations/