Aug 23, 2013 By Mark Hunter

Sales Expert Advice: How to Control Your Pricing

in Sales

It is natural to believe that the customer controls the price. After all, it’s the customer who either accepts or rejects the price, right? I’ve heard this argument from a number of salespeople and sales managers.

The problem with this belief is that it is wrong. In reality, the salesperson controls the price. It is the salesperson’s job to control the price 100% of the time. If the customer is controlling price, it’s only because the salesperson hasn’t done their job correctly.

Let me explain what I mean.

What is most important is that the sales process starts with a value proposition that resonates positively in the mind of the salesperson. That’s right! Before convincing the customer of the price, a salesperson first must genuinely believe in it.

Salespeople who don’t believe in their own price will invariably allow their customer to control it. This isn’t surprising, because if the salesperson is not confident and strong enough to believe in the price, the customer will capitalize on this weakness.

And when the customer is in control, it stands to reason the price is going to go down. Each time the customer challenges a weak salesperson regarding price, the salesperson becomes increasingly doubtful about that price. In a short span of time, the entire process becomes a race to the bottom.

The Easy Way to Believe in Your Pricing

The salesperson must believe in the value proposition, and the easiest way to do this is to have first-hand experience of having sold to other customers who have benefited from the product or service.

There is nothing novel about this concept, but it amazes me how often I encounter salespeople who don’t have a clue how their customers have benefited. This is why it is absolutely vital that a salesperson regularly capture the testimonials and experiences of their customers who have benefited from the product. Follow-up with customers after the sale and keep a file of their positive comments.

When the salesperson believes in the value proposition, they are in a position to present it to their customers. Presenting the value proposition is simply helping the customer see how the product or service will allow them to achieve their desired outcome.

Don't Talk Price Too Early

Interestingly, the actual price does not enter the process at this point. Putting the price into the equation before the customer can fully appreciate how they will benefit is only asking for trouble.

If the price enters the discussion too early, either because the salesperson brings it up or the customer asks about it, then the discussion shifts to one about price rather than desired outcomes. If the customer doesn’t have an understanding of how they will benefit from the product or service, they naturally will resort to fighting on price and that means they gain control.

You should have control. Your job is to build dialogue in such a way that the customer stays focused on sharing their pain or desire – and you stay focused on how your offer brings value to the equation.

Strive to know at least three customer needs or desired benefits. Then continue your questioning and listening to the point that the customer verbally tells you how what you are offering is going to help them reach the outcome they want. At this point, you have a strong signal that price can now come into the discussion. And you are the one in control of that aspect of the discussion.

The beauty is if the customer does push back on price at this point, you have knowledge of their needs and can leverage this knowledge to support the price/value relationship.

Never give up control of your price. If you do, it will be detrimental in the short-term and long-term for your profit and confidence.

Mark Hunter, “The Sales Hunter,” is author of High-Profit Selling: Win the Sale Without Compromising on Price. He is a sales expert who speaks to thousands each year on how to increase their sales profitability. He was named one of the Top 50 Influencers in Sales by Top Sales World. To receive a free weekly sales tip and read his Sales Motivation Blog, visit www.TheSalesHunter.com. You can also follow him on Twitter, on Facebook and on LinkedIn.