Understanding the Emotional Dynamics of Pricing in Sales

Last year, I experienced a sales call that served as a profound reminder of the critical role that pricing plays in the success of any business. A restaurant owner with whom I had previously collaborated reached out in a state of distress, facing a significant decline in sales. Her financial records were chaotic, and she was contemplating the sale of her business while attempting to secure a line of credit without any clear financials to present to the bank. During our conversation, I made it a priority to listen attentively to her concerns—sometimes, the best approach is simply to act as a supportive ear, much like an untrained therapist equipped with Excel skills.

For her, the need to sort out her finances was not merely a technical necessity; it was an emotional issue. The resolution would determine whether she continued her entrepreneurial journey or decided to exit the scene. The stakes were undeniably high, and it was easy to forget the human element amid the mechanical aspects of project scoping and pricing. In the realm of small business, the personal connection is often deeply rooted.

As I reviewed her transaction history, I quickly recognized the complexity of the situation—disorganized records, personal expenses intertwined with business transactions, and the pressing urgency to rectify the mess. I was aware that this would not be a straightforward task. Given our prior relationship, I wanted to avoid shocking her with a high fee, especially since she was a repeat client who genuinely needed assistance. At the same time, I was cautious about underpricing the work and potentially finding myself enmeshed in a project that would feel burdensome.

I then referred to my straightforward pricing worksheet—a helpful tool I use for self-assessment (I’ll share the link in the comments for those interested). After evaluating the scope of the work, I prepared a proposal of $4,200 and sent it her way. To my surprise, rather than negotiating, she signed immediately and paid the deposit, stating that it was the first time in months she felt a sense of relief when discussing her business predicament.

This experience reaffirmed a crucial lesson I’ve learned multiple times: when clients feel understood and valued in relation to their challenges, the price becomes secondary. They are eager for someone they can trust to address their issues, particularly if they have the financial resources to do so.

Reflecting on past experiences, I’ve made the mistake of underpricing similar work. It’s tempting to estimate the time required, but the true value lies in