ROI Selling Blog

Every sales rep dreads hearing prospect objections. From “Your price is too high,” to “Call me again in three months when I get my budget back,” it can sometimes seem like all prospects want to do is find reasons not to buy from you. This is a frustrating situation for reps, especially when they feel, as the best do, that their product or solution could actually help the prospect and improve his or her business. So what’s the disconnect? If your offering can actually make life easier for this prospect, why is she spending so much time finding reasons to reject it?

Setting the price for your offering is critical. Price dictates whether or not your offering will succeed or fail in the marketplace. A price that’s too low can cause you to operate in the red or leave profits on the table. However, a price that’s too high could create drag on the sales cycle or make it tough for your salespeople to close deals. Why Common Pricing Strategies Fail When setting price, you’re looking for the optimal price to maximize profitability. That number is not the highest price possible nor is it based solely on what your competition charges, yet I hear many marketers talk about pricing in exactly those terms. Here are the two most common approaches to pricing I see.