Captain’s log, stardate 20190912
Value pricing example from reader Anthony English
Sent by Jonathan Stark on September 13th, 2019
Long-time reader Anthony English sent in an excellent example of value pricing from a recent sales interview (shared with permission):
I just spoke to a prospect about some coaching.
I told her: “I’m not going to charge you $4000 a month for this, but I want you to think of a number that you’re a little uncomfortable with.”
I could see the wheels turning in her head.
“Have you thought of a number?”
She (nervous, but clear): “Yes. I’ve thought of a number.”
Me: “That’s what I’m going to charge you.”
She then said: “Do you want to know the number?”
She told me the number. I was happy. More importantly, so was she.
Here’s what stands out to me from this example:
- He anchored the high end of his desired range by clearly articulating a dollar amount (i.e., “I’m not going to charge you $4000/mo for this, but…”)
- He encouraged the buyer to push herself to the limit of her budget, which is an effective way to help your buyer ultimately succeed. When they feel like they have invested a lot in reaching the desired outcome, they’re more likely to take it seriously, which in turn is more likely to get them to a successful outcome.
- He made himself vulnerable by agreeing to the price in her head without knowing what the number was. If you want prospects to trust you, the best thing to do is to trust them first. And oh by the way, having a trusting relationship in a service engagement is another way to increase the odds of success.
- Notice that Anthony didn’t ask her about ROI or financial outcomes or cost savings or increased revenue. He cut straight to the chase with a dialog that helped her to reveal to him (and herself) what the engagement was worth to her. Not on a rational level, but on a gut level.
Great example! Thanks for sharing, AE :-)