Understanding the Emotional Dynamics of Pricing in Business
In the world of sales and consulting, the nuances of pricing can often blur the line between cold calculations and genuine human connection. A recent experience I had with a restaurant owner underscored this reality and highlighted the emotional intricacies that come into play when handling client relationships.
Last year, an established restaurant owner, one I’ve collaborated with in the past, reached out to me in a state of distress. Her business was facing significant challenges—sales were declining, her financial records were disorganized, and she was even contemplating selling her restaurant. On top of that, she needed to secure a line of credit, but without clear financial records, that goal seemed daunting.
Our conversation began with her sharing her concerns. This initial moment of venting not only allowed her to ease her worries but also established a strong rapport between us. In many cases, especially in the realm of small business, the role of a consultant can resemble that of an untrained therapist—one who can empathize and provide guidance, while having a firm grasp of the necessary analytical tools.
As we discussed her financial state, it became clear that organizing and cleanly presenting her financial records wasn’t just a logistical hurdle; it held significant emotional weight for her. The pressure she felt stemmed from her financial instability and the potential loss of her business, factors that deeply influenced her outlook. It reminded me that behind every business challenge, there is a person whose aspirations and fears are intertwined with their company’s fate.
After reviewing her situation, it was evident that the task at hand would not be a straightforward fix. I was aware that the process would take longer than anticipated, involving a thorough examination of her transactions, including some personal expenditures. I didn’t want to scare her off with a high quote, as she was not only a returning client but also someone I genuinely enjoyed working with, and in desperate need of assistance. Conversely, I also didn’t want to undervalue the project and find myself overwhelmed by the scope of work.
Utilizing a pricing worksheet I frequently reference to recalibrate my estimates, I proposed a fee of $4,200 for the project. To my surprise, she accepted almost immediately, moving swiftly to pay the deposit. She later expressed that it was the first moment in months where she felt a sense of relief concerning her business challenges.
This experience reaffirmed a principle I consistently witness in my practice: when clients feel understood and supported, financial considerations take a back seat. They seek
No responses yet