10 Steps To Presenting Your Price (So Your Prospects Close On The Spot)
(NOTE – this post ended up being longer and more loaded than I thought it was going to be. If you really want to have your price taken better when you present it, you’ll have to go through this post several times, and most importantly PRACTICE.)
Wondering how your price is going to be interpreted by the client can be one of the most daunting parts of the sales process (especially if you’re selling an intangible, like coaching or training).
On one hand, you don’t want to be priced too low, and have the prospect say “I’LL TAKE IT” right away… that’ll leave you wondering what you COULD (or should) be charging…
On the other hand, you don’t want to put all that energy and effort into lead gen, pipeline, process (not to mention product development), only to be laughed out of the building when you state your prices.
If you want to know HOW to price, check out this post I did a few weeks ago. This is about how to PRESENT the price to the prospect.
When I was a rookie sales person (I’ve now done more than 2,000 one-on-one sales appointments in the last 8 years, and am still doing tons every week), is that as soon as I would be asked the price, I would stumble, fumble, stutter, and just tell them the outright price. This was followed by the prospect telling me that thank you, and they will get back to me (literally the worst).
But now, even if I DO decide to tell the client the price if asked at the beginning or middle of the call, I can give it to them, keep them on the line, build up the value, and the close them. However there’s a LOT of difference from what I used to do, to what I do now.
Logical Vs. Emotional Advantages
Before going too deep into the exact way to present the price, you need to understand the difference between logical advantage and emotional advantage. Pretty self-explanatory, but understanding how to use them is what’s important.
- Logical Advantage – “By having me coach you on your business, your are likely to see a 30% increase in business in the next 6 months. My average client growth is 30%, so by looking at my track record, you can expect the same. This will net you an extra $5,400 per month, and a positive ROI from your investment with me in just 21 days.”
- Emotional Advantage – “You will be able to spend more time and money with your family, and finally take your wife on that trip to Paris she’s been asking for.”
Now, to put them together in a tight little package you can deliver to your client, with this formula:
What this means to you is (logical advantages)
Which will allow you to (emotional advantages)
Okay now that we have that out of the way, let’s get to actually presenting the price.
Having a “Stack”
Presenting the price is about stacking logical advantages, emotional advantages, and then finally rounding it out by comparing what your price is compared to something that resonates with them.
Having a stack that works is one of the most important tools you can create in your sales process. This is some important stuff, so use this outline and figure out what your stack looks like.
- Review what they’re going to be getting
- Describe most significant logical advantage to them
- Describe most significant emotional advantage to them
- Tell them how AFFORDABLE your price is (I can’t even believe we sell it for this much)
- Compare your price to something that resonates with them (it will only cost you one new customer/month at your average new customer value)
- (if you do monthly payment, refer to it as financing) Tell them that we even FINANCE it for you, so you don’t need to invest any large amount up front
- Price Anchor something comparable (that’s much more expensive) to get them thinking of a much bigger number, so that you’ll be inexpensive when you tell them. (if you were to buy one-on-one coaching with X, it would be over $50,000/year… and now we would never DREAM of charging you anything close to that… although it WOULD be worth it because of the value you’d get out of it… etc.)
- Tell them the price – We charge ONLY $XXX/month.
- But wait, there’s more! (you can actually say that if you have a good relationship.. or you can say something that’s less catch-phrasey) – Explain any additional guarantees, promises, refund policies that you have, to finish maximizing the value of the offering to them.
- Ask, “Is that reasonable?”
NOTE: This ISN’T the CLOSE stack. This is the price presentation stack. From here, you go into your close stack. Which is a story for another day. The purpose of the CLOSE Stack is to get the prospect to sell themselves to you, instead of you trying to sell the prospect. If you my close stack before I get around to posting it, click here and I’ll send it over to you.
So to recap, go through this process several times, write out the steps, and figure out exactly how you should be doing this. It’s important to SCRIPT it, word for word, because once you start getting down to the final few minutes before the actual close, every word matters. Put it together, and if you want, send it over to me and I’ll take a look and give you feedback on it. Reach out to me by joining my Facebook group here, Sell More, Better.
What’s YOUR process for telling your customers the price? Am I missing anything that you feel is a “must use”? Let me know in the comments below!