The Emotional Dynamics of Pricing in Small Business Sales
Reflecting on a pivotal sales call from late last year, I was reminded of the critical nature of pricing in running a successful business. A restaurant owner, with whom I had established a previous relationship, reached out in a state of distress. Sales were plummeting, her financial records were in disarray, and she was contemplating selling her business—all while trying to secure a line of credit without clear financial statements to present to the bank.
During our conversation, I took a patient approach, allowing her to express her concerns and frustrations. This strategy not only built our rapport but also highlighted a key insight: sometimes, the role of a consultant veers into that of an empathetic listener or, as I like to say, an unqualified therapist with a knack for Excel.
For her, rectifying her financial records was more than just a procedural task; it was an emotional lifeline. Her future—whether it involved continuing to run her restaurant or exiting gracefully—hung in the balance. In the process of consulting, I often find it easy to lose sight of the fact that behind every business transaction lies a deeply personal story. Small businesses, in particular, operate on emotional levels that can be easily overlooked in the analytical grind of scoping and quoting work.
As I assessed the chaos in her financial records—scrutinizing transaction volumes, disorganized documents, and personal expenses intertwining with business expenditures—I recognized that cleaning up her books was going to be a significant undertaking. My priority was to avoid shocking her with an exorbitant quote, especially since she was a repeat client and someone whose entrepreneurship I genuinely respected. However, I also wanted to ensure I assigned a fair value to the complex work ahead to avoid feeling trapped in a project that could lead to resentment.
With this in mind, I referred to my pricing worksheet, a tool I use to gauge my proposals fairly, and prepared a quote of $4,200. To my surprise, she accepted it immediately and paid the deposit. She even expressed that it was the first time in months she felt a sense of relief regarding her company’s future.
This experience reaffirmed a valuable lesson I’ve learned repeatedly: when a client feels that you genuinely understand their struggles and needs, the conversation often shifts away from price. These clients are not merely looking for service; they seek a reliable ally to solve their pressing challenges, especially when they have the means to invest in solutions.
In the past,
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