The Emotional Landscape of Pricing: A Lesson from the World of Sales

In the dynamic realm of sales, understanding your client’s emotional landscape can be just as crucial as technical know-how. A recent experience underscored this point vividly, highlighting the delicate interplay between pricing strategies and the personal stakes involved in small business ownership.

Late last year, I received a frantic call from a restaurant owner with whom I had previously collaborated. She was grappling with a steep decline in sales, disorganized financial records, and contemplating selling her business. Additionally, she faced the pressure of securing a line of credit without clean financial documentation to present to the bank. As we spoke, I opted to listen attentively while she expressed her concerns—a tactic that often fosters rapport, akin to being an unqualified therapist who’s well-versed in Excel.

It became clear that for her, updating her financial records wasn’t merely a logistical necessity; it was tied to her identity as a business owner. The outcome of this undertaking could dictate whether she continued her entrepreneurial journey or decided to exit. The stakes were undeniably high. Amidst the technicalities of pricing and project scope, it’s easy to overlook the human element in business. For many small business owners, what they do is deeply personal.

As I assessed her situation, it was evident that cleaning up her records was going to be no small feat. The sheer volume of transactions, the chaotic state of her accounts, and the personal expenditures intertwined with her business affairs all pointed toward an extensive project rather than a quick fix. Given our previous working relationship and my genuine desire to assist her, I wanted to find a balance in pricing that reflected both the effort required and her financial constraints.

I turned to my trusty pricing worksheet for guidance (which I’ve made available via a link in the comments for anyone interested). After careful consideration, I proposed a fee of $4,200. Anticipating some haggling, I was pleasantly surprised when she accepted the offer without hesitation, paid the deposit, and shared that it was the first moment in months where she felt a sense of relief regarding her business troubles.

This interaction reinforced a lesson that continues to resonate with me: when clients feel genuinely understood and helped, pricing becomes a secondary concern. They seek a reliable partner to resolve their issues, especially when they possess the financial means to do so.

Reflecting on past experiences, I have occasionally undervalued similar projects, mistakenly estimating time rather than focusing on the client’s overarching need