How do you answer, "How Much is it?"

10 years ago

Don't get it in the first place.

You DO actually qualify them before launching into your 'great presentation' don't you?

You DO build financial value into your 'great presentation' don't you?

You DO qualify how much they're spending to solve the problem currently don't you?

If you're NOT doing those things then you'll get the how much is it question all the time.

If you have cornered yourself then there are some well used ways of trying to dig yourself out of the hole.

How much? Ah well you see Mr Customer.......that's the best part.....

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Jason Kanigan

10 years ago

We just had a long discussion about this

http://www.warriorforum.com/offline-...-response.html

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SalesGod

10 years ago

Don't worry about competing on price. Provide the most value and you can charge whatever you want. Build so much value that you put yourself in your own category and others can't compete. Why does someone buy a lamborghini over a Toyota Camry? Price is irrelevant if you provide true value to people. Them asking the price is a buying question, when they ask that tell them confidently then close them down. Everything I sell at my company is way more expensive then the competitors.

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smilealot

10 years ago

Before you even qualify your client, you need to first know who your ideal client is. For example, I do work for a company whose ideal client have $10 million dollar homes. The product they sell is $50/SF. The average Joe pays $5/SF for this product purchased at your local big box store. When someone calls for a quote, right off the bat they tell them their prices start at $50/SF. That eliminates wasting everyone's time.

So, first, figure out who you want to offer your services to. 'Everyone' does not fit the bill. Once you figure that part out, figure out your pricing and give them options. (Buildi it into your slides, similar to webinars.) I usually give my clients 3 options, Low, Medium and High and clearly outline what they're getting. (That way there's something for every budget.) If they choose the Low price point, at least you have a foot in the door. Do a good job and they'll give you all their related work.

Regardless of what you do, they're still going to call your competition and see what they're charging. That's just business, we all do it, even in the IM world. How often have you checked to see what bonus another marketer is offering??

Just do a good job, give them options and great references. You can't lose!!

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Ralph83

10 years ago

Isn't that one of the most important things to do when marketing something; answering the "how much" question?

Also, it seems you either feel like you're asking too much money or not providing enough value. Why else would the "how much" question be such a problem to you, right? You must have some doubt somewhere.

First make sure that you believe in what you have to offer and how much this is worth. Once you believe in it, so will others. If you can't name your price without confidence, others can't pay you with confidence... so they probably won't pay you at all.

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bizgrower

10 years ago

Answer it ahead of time so you are qualifying and not dealing with suspects
and tire kickers. Important to remember that there is a huge difference between
suspects and qualified prospects.

Establish your competency and increase your deal flow so you really don't give
a rat's ass about what your competition might offer.

Warrior Claude Whitacre offers a one price package that get's businesses more
leads and customers via the internet. So, prospects know up front how much.
He does offer two payment options. Something up front and then monthly, or
they can pay the lump sum. (I'm willing to stand corrected if I got the payment
options wrong.)

Another example I like I like how this company lays it out for qualifying their
prospects. I'm sure they do it in all their marketing collateral.

Who We Work With

Web Design and Website Development Pricing | Colorado Web Design Company

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Claude Whitacre

10 years ago

Originally Posted by nofearman

Everyone's probably been there. You do a great presentation, the client gets excited, then asks , "How much?"...
Then, a near paralysis experience takes over!

The first thing that hits me is, "ok how do I do this so he/she doesn't get on the phone 5 minutes after I leave and ask a competitor their price?". And, of course the competitor is going to give a much lower quote, until after the job begins and they "have to raise the price because of unexpected requirements'"..

I know this may sound crazy to some in here, and I 'm sure there wont be any shortage of "sarcasm", but this is often where I stumble..

How do you handle the "how much" challenge?

Your question reveals a problem that you need to address before I tell you how to give the price.

If the prospect can shop, it's because you have given them every piece of information they need to compare prices. You have created a commodity that can be shopped.

I list results, and general services, but I don't explain how they are done. I call my services by names they can't look up on Google. I create a standardized package of services that looks customized to them, (and only available from us) to give them nothing to compare to a competitor's offer.

Also, buyers have a need to shop. You can fulfill that need while you are showing options of services. I don't mean your own services, but different approaches. Of course, it's presented so that they will nearly always choose your option. But they will feel as though they have shopped around.

In other words, first, you need to minimize the desire for them so shop, and make it nearly impossible for them to compare services and prices.

As far as telling them the price. I prefer to do that up front. It allows the price to sink in as the presentation progresses. It gives them time to accept it. And then, it's impossible to get a price objection at the end. If the price is going to be a real obstacle, I want to know before I spend time and effort on a presentation.

If they ask you the price, no matter when it is....give it to them right then. Any excuse you give to avoid giving them the price right then, will sound like fear...because it is fear.

Fear of giving the price is why salespeople (I use the term loosely) wait as long as they can to give it.

The best way to give the price is in a matter of fact way, not trying to sell it...like you are telling them the temperature outside.

If you sell one thing, I just say "It's $4,365."

If you are offering a package of services, I would say "If you get everything I recommended, it's $5,935".

The advantage of saying "if you get everything I recommended.." is that you can easily delete services to create a lower price. And it's more difficult to object to.

But really, really, really, it's better to talk about money before you discuss specific services. It's counter-intuitive, I know. But telling the price up front is going to eliminate so many problems in closing.

Of course, my best answer to your question is to read my One Call Closing book. It covers every facet of this.

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davejarvys

10 years ago

Originally Posted by Claude Whitacre

If they ask you the price, no matter when it is....give it to them right then. Any excuse you give to avoid giving them the price right then, will sound like fear...because it is fear.

The best way to give the price is in a matter of fact way, not trying to sell it...like you are telling them the temperature outside.

This really is the best advice so far.

Everyone is assuming you know the price in advance but if you are involved with a business like insurance you don't.

Thanks
1 reply

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Claude Whitacre

10 years ago

Originally Posted by davejarvys

This really is the best advice so far.

Everyone is assuming you know the price in advance but if you are involved with a business like insurance you don't.

When I sold life insurance, I can't remember anyone ever asking me "How much is this?" or "What's the price?" You're right, it isn't that kind of product.

Strange that the question never came up like that when selling insurance. But I do remember always quoting more than I thought it would cost (no breaks for not smoking, for example). That way, the premium always came back as less than promised.

Then I would ask for two policies. One for what they asked for, and another one for maybe 50% more..."For the future". Maybe half the people took both.

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joe golfer

10 years ago

Originally Posted by Claude Whitacre

Then I would ask for two policies. One for what they asked for, and another one for maybe 50% more..."For the future". Maybe half the people took both.

Sorry, I don't follow. I don't know insurance. Why do they buy both policies? Doesn't the more expensive one cover what the smaller one does (but with additional features and coverage)?

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Claude Whitacre

10 years ago

Originally Posted by joe golfer

Sorry, I don't follow. I don't know insurance. Why do they buy both policies? Doesn't the more expensive one cover what the smaller one does (but with additional features and coverage)?

I thought you sold insurance.

I would deliver the policy they bought. I would also have another policy issued. Usually, this policy was 50% of the first one. And I would give the reasons why it might be a good idea to get both. Sometimes they bought both, sometimes not. But it was a very profitable add on sale.

They would have the same benefits, just in different amounts. I found trying to sell two different types of policies forced them to think about it more, and could derail the entire sale.

Added later;

Sometimes, if they bought a whole life policy for $246,000 (as an example) I would have a second one issued for $300,000 or $500,000 (wherever the rate break was). They would see the savings, and just round up. The important thing was, that I would get the application (and check) for the amount of insurance needed (or agreed on).

It's much easier to sell a larger policy, after they have accepted delivery of the smaller one. It becomes a detail, rather than a major decision.

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nofearman

10 years ago

Originally Posted by Claude Whitacre

Your question reveals a problem that you need to address before I tell you how to give the price.

If the prospect can shop, it's because you have given them every piece of information they need to compare prices. You have created a commodity that can be shopped.

I list results, and general services, but I don't explain how they are done. I call my services by names they can't look up on Google. I create a standardized package of services that looks customized to them, (and only available from us) to give them nothing to compare to a competitor's offer.

Also, buyers have a need to shop. You can fulfill that need while you are showing options of services. I don't mean your own services, but different approaches. Of course, it's presented so that they will nearly always choose your option. But they will feel as though they have shopped around.

In other words, first, you need to minimize the desire for them so shop, and make it nearly impossible for them to compare services and prices.

As far as telling them the price. I prefer to do that up front. It allows the price to sink in as the presentation progresses. It gives them time to accept it. And then, it's impossible to get a price objection at the end. If the price is going to be a real obstacle, I want to know before I spend time and effort on a presentation.

If they ask you the price, no matter when it is....give it to them right then. Any excuse you give to avoid giving them the price right then, will sound like fear...because it is fear.

Fear of giving the price is why salespeople (I use the term loosely) wait as long as they can to give it.

The best way to give the price is in a matter of fact way, not trying to sell it...like you are telling them the temperature outside.

If you sell one thing, I just say "It's $4,365."

If you are offering a package of services, I would say "If you get everything I recommended, it's $5,935".

The advantage of saying "if you get everything I recommended.." is that you can easily delete services to create a lower price. And it's more difficult to object to.

But really, really, really, it's better to talk about money before you discuss specific services. It's counter-intuitive, I know. But telling the price up front is going to eliminate so many problems in closing.

Of course, my best answer to your question is to read my One Call Closing book. It covers every facet of this.

Some great points. A lot of this I learned from the Sandler Sales methodology. With one exception. They say to never give out too soon and not too much information. Because once you do, "why do they need you anymore?"

Thanks
1 reply

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Claude Whitacre

10 years ago

Originally Posted by nofearman

Some great points. A lot of this I learned from the Sandler Sales methodology. With one exception. They say to never give out too soon and not too much information. Because once you do, "why do they need you anymore?"

You mean give out information on what you sell? Give out the price?

The only time you would withhold information, is if you are selling that information.

What do they need me for? To supply them with the thing we have been talking about.

What information do they get? Everything they need to know to feel comfortable buying.

Sandler has some great information. But it was created for salespeople that are afraid to ask people to buy.

When it is time for the person to buy, if you don't ask them to buy...confidently.... calmly...and without hesitation...they will think something is wrong.

I've seen more sales lost by hesitating to ask for the order (some by me) than I've seen lost by asking too soon.

One secret that I use to help me make sales? I make no attempt to hide why I am calling, or why I am there. There is no mistake that I am there to make a sale. It's just part of the conversation.

I want them to start getting used to the idea of buying...as soon as possible.

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misterme

10 years ago

You should be volunteering a ballpark figure before they ask. Sort of like stopping the presentation to make sure they can afford you. "But before we get more involved let me give you an idea of price, OK? For what you're looking for... this and that... people in your situation typically invest anywhere from $XX to $ZZ depending on blah blah. Is that what you have in mind?"

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Claude Whitacre

10 years ago

Originally Posted by misterme

You should be volunteering a ballpark figure before they ask. Sort of like stopping the presentation to make sure they can afford you. "But before we get more involved let me give you an idea of price, OK? For what you're looking for... this and that... people in your situation typically invest anywhere from to depending on blah blah. Is that what you have in mind?"

In retail, selling vacuum cleaners, I ask if there is a price range they need to stay in.
Sometimes, they say, "Something reasonable", "Not too much", "I don't need anything fancy", "I want something good". And of course, that's no help.

So, I say, "If I say $500, what's your reaction?"

Now, I get what I need.

"If it's what I need, that's OK"
"Are you nuts?"
"I assumed a good vacuum would be about that"
"I didn't want to buy a car"

Did I really want to sell a $500 vacuum? Not really. I just need to know what they are thinking, if anything.

When selling local online marketing, I ask, "Did you see my website?"
Because if they saw my website, they know how much I charge.

Whatever expectation they have coming in, I want to know. It helps in one of these ways;
Eliminate them as a client.
Know that i need to build value and change expectations.
Can just concentrate more on the client's needs.

But, I do this up front. Always. What a complete soul crushing waste of time to invest in a sales presentation when they are thinking $50.

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MarketingQuotes101

10 years ago

I just quote my prices with a straight face and shut up. That's it. Mystery solved.
But I've positioned myself beforehand and done all the heavy lifting before that question arises. Expectations are managed and they know what to expect for an answer to that question.

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aduttonater

10 years ago

It's less than what it can bring you in returned profit, that's for sure. So what do you say Bob, can I get you started for 3 months right now today?

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LastingLifeSuccess

10 years ago

Like has been mentioned repeatedly, it comes down to the perceived value. But you have to keep in mind, different businesses are willing to accept different price points. Consider working with a tiny mom and pop convenience shop compared to a million dollar attorney or doctor complex.

One will have a much bigger potential budget than the other. So when offering high end services it's important to target the right markets as well as demonstrate superior value.

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marciayudkin

10 years ago

The best way to give the price is in a matter of fact way, not trying to sell it...like you are telling them the temperature outside.

If you sell one thing, I just say "It's $4,365."

If you are offering a package of services, I would say "If you get everything I recommended, it's $5,935".

The advantage of saying "if you get everything I recommended.." is that you can easily delete services to create a lower price. And it's more difficult to object to.

But really, really, really, it's better to talk about money before you discuss specific services. It's counter-intuitive, I know. But telling the price up front is going to eliminate so many problems in closing.

Of course, my best answer to your question is to read my One Call Closing book. It covers every facet of this.

Claude, I really like your posts so I hope you won't mind some feedback.

The above caught my eye, and I wanted to let you know that never in a million years would I have imagined that a book called One Call Closing would contain an interesting philosophy about how to deal with prices. And not only does the title seem to be in a different universe from pricing, so does the description of the book in your signature.

This point is not necessarily a criticism because it could be taken as opening up some new opportunities for you to sell your expertise.

Sincerely,
Marcia Yudkin

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kemdev

10 years ago

Originally Posted by marciayudkin

The above caught my eye, and I wanted to let you know that never in a million years would I have imagined that a book called One Call Closing would contain an interesting philosophy about how to deal with prices. And not only does the title seem to be in a different universe from pricing, so does the description of the book in your signature.
Sincerely,
Marcia Yudkin

To run the risk of defending an offline forum authority, Claude's book deals with putting the the sales process into motion in one conversation or sitting. And part of that process is addressing pricing, which he advocates you do, much in the same way he described earlier.

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bizgrower

10 years ago

Originally Posted by kemdev

To run the risk of defending an offline forum authority, Claude's book deals with putting the the sales process into motion in one conversation or sitting. And part of that process is addressing pricing, which he advocates you do, much in the same way he described earlier.

I think she is really just suggesting some copy writing issues so he can reach more people.

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Claude Whitacre

10 years ago

Originally Posted by marciayudkin

Claude, I really like your posts so I hope you won't mind some feedback.

The above caught my eye, and I wanted to let you know that never in a million years would I have imagined that a book called One Call Closing would contain an interesting philosophy about how to deal with prices. And not only does the title seem to be in a different universe from pricing, so does the description of the book in your signature.

This point is not necessarily a criticism because it could be taken as opening up some new opportunities for you to sell your expertise.

Sincerely,
Marcia Yudkin

Marcia; I don't mind at all. I'm a fan of your work, and have read at least one of your books.

One of the things that prevents closing in one call is hedging on talking about price.

It's a small matter. But if you are trying to make the sale in one call, everything counts.

And talking about price up front provides the customer with the entire rest of the presentation...to think about the price, and consider buying.

In most sales presentations, the prospect doesn't think about buying...until the end of the presentation. That's the beginning of the buying process to them.

I want the buying process to begin before I get there. At the very latest, at the beginning of my presentation.

One reality that new salespeople have trouble accepting; Buying is a completely natural and expected activity. People buy things every day, and enjoy most of the process.

But most salespeople give off a definite "You shouldn't buy today. I think my price is outrageous" vibe.

And I want a "Buying today is natural. And most people buy from me" vibe. And I do many things to guarantee it.

I edited my signature. My Amazon sales page includes the "when to give the price, and how" copy.

Originally Posted by bizgrower

I think she is really just suggesting some copy writing issues so he can reach more people.

I took it as that. And it's smart advice.

Originally Posted by bmminc

By qualifying your customers that means you know they can afford it and you know they can benefit from it.

So price at that point isn't an issue. The issue is whether or not you can show them the value.

If price is an issue then you didn't show them the full value of what you have.

I appreciate your contribution. But there is more to it.

They need to be able to afford it, and they need to see the value. But that doesn't guarantee they will buy. In fact, these are just essentials, they aren't what make people buy.

People buy because they want to, not because the product/service is worth it...not because they can afford it....they have to want it.

My first questions are Discovery questions. And here is where I establish that they can afford it. My next questions are Qualifying questions. And it's here that I discover if they will want it. Then the presentation takes place, where I show value, and how it perfectly fits what they want.

But there are plenty of things I can afford, and are worth the price...that I simply don't want. And so I don't buy them.

But something I really want? I'll justify it somehow.

At the beginning of my sales career...I used to spend years, shaking my head, "I don't get it. They can afford it, and they even say it's worth the price. But they didn't buy".

I found the cause. I wasn't asking the questions to find out what they want. I wasn't fitting my product precisely to what they said they wanted. And I wasn't giving off the signals they everyone buys from me, and I expected them to buy as well.

And even now, I miss. And I'll probably never know why.

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bmminc

10 years ago

Price really shouldn't be an issue if what you have is worth it and if you have qualified your client.

If they are meeting with you and you provide value and seem like a reasonable guy then they will go with you. A competitor might have a lower price..but who cares? Let the competitor get underpaid.

Offer your value, qualify your clients.

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kemdev 10 years ago

Originally Posted by bmminc

Price really shouldn't be an issue if what you have is worth it and if you have qualified your client.

Counterpoint: often it does.
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- bmminc 10 years ago
  
  Originally Posted by kemdev
  
  Counterpoint: often it does.
  
  By qualifying your customers that means you know they can afford it and you know they can benefit from it.
  
  So price at that point isn't an issue. The issue is whether or not you can show them the value.
  
  If price is an issue then you didn't show them the full value of what you have.
  
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How do you answer, "How Much is it?"

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