It’s more difficult and competitive than ever to win new business. Globalization means smart people worldwide are jockeying for the same opportunities. Steps in the supply chain have been replaced by technology, which drastically lowers transaction costs. Price is front and center as many businesses place their focus on improving their bottom line.

Even with these shifts, there is a way forward that gets you paid what your product and service are worth, and gives the customer the value they desperately need.

Read on for four best practices when it comes to setting your sales prices.

The Importance of Believing in Your Prices

When making a decision on price, first and foremost, the salesperson must believe in the value proposition. The best way to get this belief is first-hand experience of having sold to previous customers who have benefited from the product or service you are selling. 

Why You Shouldn’t Discount

Cutting price to secure a sale isn’t a competitive advantage, because it can be done by anyone. Often salespeople offer discounts because of time pressure, including the push to make a quarterly number or liquidate inventory. But discounting signals to current and future customers that your product isn’t worth the full price. 

The Importance of Offering Value

Although price may get blamed, the real reason salespeople typically give discounts to close deals is because their selling process is lacking the focus it needs to create value for their prospect. Your mission as a salesperson is to uncover at least three of your customer’s needs or desired outcomes. This allows you to establish a relationship between the price and the value of the product or service being sold. 

The Right Time to Talk Pricing

Bringing price into the equation before the customer can fully appreciate how the product or service will benefit them shifts the conversation from desired outcomes to money. Your job as a salesperson is to build dialogue that keeps the customer focused on their pain or desire. Your focus should be on how your offer brings value to the equation.

For much more on ways to set pricing that benefits both your customer and your bottom line, download the free ebook, How to Set Your Sales Prices.