The Human Element of Sales: Understanding Pricing in a Personal Context
In today’s competitive business landscape, understanding the emotional aspects of selling and pricing can make all the difference, especially for small business owners. A recent experience with a repeat client, a restaurant owner facing significant challenges, brought this lesson home in a profound way.
She reached out to me in a state of distress—it seemed her business was sliding into chaos. Sales were declining, her financial records were disorganized, and she was contemplating selling her establishment. To add to her concerns, she needed to secure a line of credit but lacked clean financial statements to present to her bank. During our phone conversation, I adopted a listening approach, allowing her to vent her frustrations {a therapeutic technique that often fosters better working relationships}.
For her, organizing her financials was not merely a task—it was emotionally charged. This situation could dictate whether she remained in the game or sought an exit. High stakes like these are often easy to overlook amidst the mechanical aspects of pricing and project management, especially when dealing with small businesses, where personal investments run deep.
As I assessed her situation—taking into account the vast number of transactions, the disarray of her records, and the urgency of the matter—I realized that delivering a quick cleanup was not feasible. My intention was to strike a balance between providing a fair quote without overwhelming her with costs, especially given our previous positive working relationship. At the same time, I wanted to avoid underquoting and risking a project that could lead to resentment on my part.
I turned to a pricing worksheet I regularly use to check my calculations. I proposed a fee of $4,200 for the project and sent it over, anticipating possible negotiations. To my surprise, she signed the proposal almost immediately and paid the deposit, sharing that it was the first glimmer of relief she had felt in months regarding her business situation.
This experience reinforced a crucial insight I’ve observed throughout my career: when clients feel that you genuinely understand their struggles and the solutions they require, pricing becomes a secondary concern. Clients in distress are often looking for trusted partners who can effectively resolve their issues—particularly if they have the means to pay.
I’ve learned the hard way that underpricing can lead to difficulties. The common miscalculation of estimating hours often disregards the real value—solving clients’ problems and restoring their sense of control. Pricing should reflect the solutions offered, not just the time spent, which rarely aligns with initial estimates. Any seasoned
No responses yet