The Emotional Aspect of Effective Pricing in Sales

In the world of business, especially in small enterprises, the emotional component often intertwines with numbers and strategies. Recently, I had a sales conversation that served as a poignant reminder of the significance of proper pricing when managing a firm. A restaurant owner, with whom I had previously partnered, reached out in a state of turmoil. Her sales were plummeting, her financial records were disorganized, and she was contemplating selling her business. Additionally, she was in the process of applying for a line of credit but lacked clean financials to present to the bank. During our call, I took a step back and let her share her concerns and frustrations, reminiscent of a therapist – albeit an inexperienced one with a knack for Excel.

For her, the urgency to organize her finances went beyond mere logistics; it was a deeply emotional issue. The decisions she faced were pivotal, potentially determining the future of her business and personal livelihood. In the rush of analyzing figures and determining pricing, it’s easy to overlook the human element on the other side of the line. The challenges confronting small business owners can be intensely personal and laden with stress.

As I assessed her financial chaos—rampant personal expenditures mixed in along with the sheer volume of transactions—I quickly realized this wouldn’t be a simple, swift cleanup. My goal was to provide her with support without overwhelming her with costs, especially since she was a repeat client and a fellow entrepreneur I genuinely enjoyed working with. I also had to ensure I wouldn’t underquote and find myself mired in an extensive project that I would later regret.

To arrive at a fair price for the services she urgently needed, I referenced a pricing worksheet I use for self-assessment (a resource I’ll share in the comments). I created a proposal amounting to $4,200 and sent it her way, anticipating some back-and-forth on the pricing. To my surprise, she accepted immediately, paid the deposit, and expressed that this was the first time in months she felt a sense of relief regarding her business situation.

This experience reaffirmed an invaluable lesson: when clients see that you genuinely understand their challenges, the conversation about pricing becomes secondary. They seek trust and the reassurance that their problems will be resolved, particularly when they are in a position to invest in solutions.

Reflecting on past experiences, I’ve encountered instances where I undervalued my work. It’s tempting to calculate a project based on hours expected, but true