Understanding the Emotional Dynamics of Pricing in Consulting

In the realm of running a business, especially a small one, pricing can often be a daunting yet vital aspect. A recent sales call reminded me just how crucial it is to get pricing right, as well as the emotional weight that often accompanies financial discussions.

Late last year, I received a call from a restaurant owner I had previously worked with. She was overwhelmed and in a state of crisis, facing dwindling sales, financial disarray, and contemplating the sale of her business. On top of that, she was in the process of applying for a line of credit but lacked clear financials to present to the bank. Our initial conversation was an eye-opener; I primarily listened as she expressed her concerns. Sometimes, in consulting, we find ourselves playing the role of unqualified therapists—offering support while utilizing our skills in areas like Excel to navigate the complexities.

For her, the journey of updating her financial records wasn’t merely a technical task; it was a deeply personal and emotional experience. The outcome of our collaboration had the power to either reinvigorate her business or open up options for a graceful exit. The stakes were undeniably high, and in such moments, it’s easy to overlook the human side of business amidst the numbers and strategies.

As I examined the situation—dissecting the volume of transactions, the chaotic records, and the intertwining of personal expenses—I realized that this was not going to be a simple fix. I wanted to give her a fair quote that acknowledged the scope of the work without overwhelming her. After all, she was a repeat client—a seasoned entrepreneur I genuinely enjoyed working with. In aiming to strike that balance, I referenced a basic pricing worksheet I often use for situations like this (which I will link in the comments for anyone interested).

I prepared a proposal for $4,200 and sent it her way, fully anticipating some negotiation. To my surprise, she signed the agreement promptly, paid the deposit, and expressed that it was the first time in months she felt a sense of relief when discussing her company’s challenges.

This interaction reiterated a key principle I’ve learned over time: when a client feels that you truly understand their pain points, the price becomes secondary. They want to work with someone they trust to resolve their issues—especially if they have the means to do so.

Reflecting on my past experiences, I’ve made the mistake of underpricing similar projects. It’s easy to