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Asking a prospect how much they'd be prepared to pay/what their budget is vs stating your price

by Neiluk80
7 replies
I've heard some expert salesmen say that a salesman needs to ask a prospect what their budget is or how much they'd be prepared to pay.

Then there are other people who say you should state your price and not negotiate on it. If a prospect can't afford your prices, you move on.

Which method do you think is best?

Also, if you ask a prospect 'how much would you be prepared to pay?', what if it's way below what your rate is?

I guess it all comes down to a compromise between how much a salesman is prepared to work for vs how much a prospect is prepared to pay.
#budget #pay or what #prepared #price #prospect #stating
  • Profile picture of the author dvduval
    It depends what you are selling. Product or service?

    I sell mostly services, and I generally spend time first on the details, so both the client and I are more clear on full scope of the work I will be doing. Then it is a lot easier to quote the work. That said I still base my quote on the number of hours to complete while paying an hourly rate. That way I am not guaranteeing the price in the case the scope changes.

    The same can apply to a product with options.

    By having a more lengthy conversation about the details, you can create a situation where the price can go up in a way that benefits you and the customer too (they come to fully realize increased benefits by purchasing more).
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  • Profile picture of the author Raydal
    Once you are settled on the scope of the work and what value you bring to the
    table then is the time to give the price. There are some copywriters who have
    a published price list and go from there, but all project are not so cookie-cut
    that I can give a price ahead of knowing all that the project entails.

    -Ray Edwards
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  • Profile picture of the author Randall Magwood
    I always do my base price - a price for EVERYTHING that I will do for a client. The price I choose and the income at the end of the month for me is fine. So do what will soothe your mind, and make you happy at the end of the day. Or.... do what's convenient, but make sure it's profitable for YOU and that it works.
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  • Profile picture of the author writeaway
    Never ask a prospective client what they are prepared to pay

    You are setting yourself up for a LOWBALL bid

    The #1 Rule in Negotiation: To get the price you want, you have to SET the perception of value.
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    • Profile picture of the author Kay King
      WHAT is being sold? A service - a digital product - a physical product?

      There is no one size fits all for sales - ever.
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  • Profile picture of the author kursat
    In my line of work, I have to set my price. I can not negotiate budgets vs what the cost of work is. Of course if the client finds my service price high and I am in need of more work in my diary then I can offer a discount or bonus. I find it that having a set price for each service helps both sides.
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