The Emotional Dynamics of Pricing: Lessons from a Sales Call
In the world of sales, there are moments that transcend mere transactions, revealing the deep emotional core of running a business. I recently experienced one of those moments during a sales call with a restaurant owner I had worked with in the past. The call, which took place late last year, underscored the critical importance of pricing — not just from a financial standpoint, but from an emotional one as well.
This particular entrepreneur was in a state of distress. Sales were declining, her financial records were chaotic, and she was contemplating selling her business. To make matters worse, she needed a line of credit, but her disorganized financials were holding her back. As she opened up about her plight, I took on the role of an untrained therapist, lending a sympathetic ear. Sometimes, all it takes to build rapport is to let people share their concerns.
In her case, bringing her financial records in order was about more than just numbers; it was about her future. The stakes were incredibly high: her business could either empower her to continue as a business owner or push her toward an exit. This brought back a fundamental truth I often overlook in my work: behind every financial decision lies a human soul, often burdened with personal stakes that run deep.
As I sifted through her transactions and recognized the significant blending of personal and business expenses, I realized that cleaning up her finances wouldn’t be a quick fix. I also didn’t want to deliver a painful shock regarding pricing, especially since she was a valued repeat client—a serial entrepreneur who had become both a colleague and a friend over time. Simultaneously, I had to avoid undervaluing the task at hand, which could lead to a project that I would resent.
Utilizing a straightforward pricing worksheet I keep handy for these situations, I formulated a proposal of $4,200 and sent it her way. To my surprise, she didn’t negotiate; she signed immediately and paid the deposit. She expressed that it was the first time in months she felt a sense of ease when discussing her business challenges.
This experience reaffirmed a lesson I’ve learned repeatedly: when clients feel understood and know that you are attuned to their needs, the issue of pricing becomes secondary. They yearn for someone they can trust to resolve their pressing problems, particularly when they have the financial capability to invest in solutions.
Through past experiences, I’ve been burned by underpricing my services.
No responses yet