Understanding the Emotional Side of Pricing in Business
Last year, I had a sales call that served as a poignant reminder of the critical role pricing plays in the health of a business. A restaurant owner I had partnered with previously reached out to me in a state of distress. Her sales had plummeted, her financial records were disorganized, and she was contemplating selling her business—all while applying for a line of credit without any clean financials to present to the bank. As we spoke, I primarily listened, allowing her to vent her frustrations. This approach, akin to that of an unqualified therapist armed with Excel knowledge, proved invaluable in building rapport.
For her, updating her financial records was more than just a pragmatic task; it carried significant emotional weight. The outcome of this situation would determine whether she could keep her business afloat or facilitate an exit. The stakes were incredibly high, and it was a vivid reminder that behind every business transaction lies a human story. Particularly in the realm of small businesses, emotions can run deep.
Upon reviewing the sheer volume of transactions and the chaotic state of her records, I recognized that this wouldn’t be a simple cleanup. My goal was to provide help without causing sticker shock; after all, she was a repeat client who had demonstrated entrepreneurial spirit, and I genuinely wanted to assist her. At the same time, I needed to ensure I didn’t underprice the project and risk becoming overwhelmed by the scope of the work.
To gauge my pricing, I referred to a basic pricing worksheet that I use as a self-check (I’ll share the link in the comments for those interested). I proposed a fee of $4,200, expecting some negotiation. To my surprise, she promptly signed the agreement, paid the deposit, and expressed relief—marking the first time in months that she felt calm discussing her company’s predicaments.
This experience reaffirmed a lesson I’ve learned repeatedly: when clients sense that you truly understand their challenges and needs, the price becomes secondary. They yearn for a trusted partner to resolve their issues, especially when they are financially capable.
Reflecting on past experiences, I recognize that I have sometimes undervalued my work. It’s tempting to estimate how long a task should take, yet the actual value lies in resolving the client’s issues and helping them reclaim control of their business. Additionally, projects rarely adhere to initial time estimates; unforeseen complications invariably arise, a truth well understood by those in the field.
Setting prices is a delicate balance
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