A few weeks ago, I introduced the idea that in addition to many "after the sale" strategies to ensure profitability, there is a helpful method that we tend to ignore – especially during economic slowdowns when everyone is penny-pinching. That method? Charging more!
In this series, I’m going to present five ideas to selling your way to profitability.
Idea #4: Don’t sticker-shock them. Communicate the price early and often.
How do you boil a live frog? Put the frog in a pot full of room-temperature water and slowly increase the temperature until it’s boiling. If you drop a live frog into boiling water, they’ll hysterically jump out of the pot.
At the risk of my simile offending because I’ve connected your selling experience to being boiled to death, I think boiling a frog incorrectly is like hiding our price until the end - especially when it’s expensive. If you’re slowly transparent, sharing price estimates and ranges along the way, then your customer will not be shocked with the final price.
One strategy that I really like is showing the price at the opening of a proposal presentation. This method is counter to everything they’ve experienced in the past, helps position you as having nothing to hide, and helps them justify the price along the way. Tell them up front: “I’m going to share the price with you first because it’s probably higher than our competitors and you’ll need to justify moving forward with us. As I move through the scope, you’ll be able to do the math.” Customers are always relieved with this approach.
Looking forward to revealing our last idea next week. See you then!
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