The Emotional Dynamics of Pricing: A Case Study from the Sales Frontlines
In the world of sales, pricing strategies can fundamentally shape the trajectory of a business. Recently, I had a conversation that reaffirmed the critical importance of getting your pricing right—especially in the realm of small business.
Last year, a restaurant owner, a previous client of mine, reached out in distress. Her business was facing a significant downturn; sales were plummeting, her financial records were a mess, and she was contemplating selling her company. Adding to her woes, she was in the process of applying for a line of credit without any clear financial documentation to present to the bank. We jumped on a call, and instead of immediately diving into numbers, I allowed her to vent her concerns. This approach not only helped build rapport but also reminded me that sometimes, we assume the role of unqualified therapists, simply equipped with the tools to help—like knowledge of Excel.
For her, updating and organizing her financial records was more than just a procedural task; it was intertwined with her emotional well-being. The situation was pivotal—it could either rejuvenate her business or facilitate her exit from it. This high-stakes scenario highlighted something I often overlook in the mechanical process of pricing work: the very human element behind each transaction. In the realm of small business, the stakes are frequently deeply personal.
I assessed the volume of transactions, the chaos of her records, and the blend of personal and business expenditures intermingled therein. I was acutely aware that this would not be a simple, swift cleanup. My goal was to strike a balance—I didn’t want to overwhelm her with a surprising quote, especially given our history. At the same time, I needed to avoid undervaluing the project and risking the potential for resentment down the line.
Drawing on a straightforward pricing worksheet that I keep on hand for situations like this (which I’ll share a link to in the comments), I crafted a proposal totaling $4,200. To my surprise, she accepted it without hesitation, paid the deposit promptly, and expressed that it was the first time in months she had felt a sense of relief regarding her company’s challenges.
This experience underscored a recurring lesson: when clients perceive that you genuinely understand their pain points, the conversation around price often takes a back seat. They seek a trusted partner capable of resolving their problems—especially when they possess the means to invest.
I’ve previously made the mistake of under
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