10 Strategies for Selling Better Prices

Tactics for selling at higher prices don’t get the airtime they should but all sales people should get trained in these techniques.

Think about this for a heartbeat – lifting a sales price by 10% in most businesses doubles the net profit. Selling at higher prices is the fastest and easiest way to improve a businesses bottom line. Every business owner should train his sales team in tactics for selling higher prices, even if that means lower volume.

Somebody once told me “the best sales guy isn’t the one writing the most deals”  – “he’s the one getting the best prices”.   “Improving the price is the fastest, and easiest, route to a better bottom line”.

Before somebody corrects me – I know this is easier said than done – that’s where the tactics come in. Just to be clear these aren’t tricks to blind side customers – they’re entirely legitimate tactics – specific actions intended to implement our strategy for selling at higher prices.

In later posts we might look at each in more detail, but here are the headlines for tactics you might consider:

• Never discuss the price in detail until the prospect is ready to sign.  We need to keep the price negotiation as the reason to close now.  If we negotiate ahead of that point we’ll have to give away even more later.

• Never include anything in the deal as a “sweetener”.  If the prospect wants it he’ll pay later. If he doesn’t want the sweetener it won’t help with the deal.

• Separate the consulting from the service (or product).  What you know is more valuable than what you do.  If necessary reduce the price of the service and charge for the consulting.

• Spend some “non chargeable” time scoping the project. This way you’ll get to know a lot more about the project (which adds value) and the prospect will feel just a little bit obligated.  Give away one day, to sell three which will sell thirty which will sell an on-going relationship.

• Charge the top rate for consulting. The prospect won’t think he’s getting value if the rates are too cheap.

• Never do anything for fixed price. The scope will expand but the price won’t.

• Look for upside. Get something else above the price.  This might be a testimonial, a referral, a longer term agreement, a value share, cash up front – anything that makes the deal worth more to you.

• Beware the smart client. Whilst you’ll definitely be the subject matter expert, don’t take the customer for a fool.  He buys stuff all the time and knows how to put the heat on sales guys.  He’s going to try to extract as much value as he can with things like free consulting, fixed price, guaranteed delivery.  Play him at his own game – you’ll both enjoy it.

• Have some fun in the negotiation. Retain a sense of humor – it’s the best way to take any heat out of the conversation.  Compliment the customer on his bartering skills.  You  might not feel that good about it, but the price will go up.

• If you do nothing else, make sure you focus on value, not cost.  That’s what the customer wants, even when he’s talking cost.

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