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How to Close Deals Without Dropping Your Price

There is a delicate balance between proposing a price that is too high and dropping your pants.

By
Jeb Blount
4-minute read

How to Make Sure Your Prices Aren't Too Low

Getting the price you want is, in most cases, a simple a combination of knowing what to ask for and overcoming the fear to ask for it.

What if you worry you are setting your prices too low; what should you do? One of the easiest things to do is test the water. Analyze the pricing on the last ten sales you made. Then, on the next three to five deals where you feel that you have a real chance of winning, set the bar five to ten percent higher than your average. You will quickly discover where you stand. That exercise also helps you build confidence and courage to ask for the price you want without flinching. The more you practice, the more comfortable you will become with asking for what you want. Getting the price you want is, in most cases, a simple a combination of knowing what to ask for and overcoming the fear to ask for it. An outstanding book I recommend for improving your negotiation skill is Negotiation Rules by Jeanette Nyden.

Consider What You are Trying to Accomplish

Finally, I think it is important to consider what you are trying to accomplish. If you need to make more sales now because of a quota or you are attempting to take market share from a competitor, then using price as and incentive might be the right thing to do. If you have achieved your quota and are trying to maximize your income, then you will want to ask for more--knowing that in some cases you will lose the deal, but overall you will earn more in commission.

There is a delicate balance between proposing a price that is too high and dropping your pants. Obviously, if your price is too high you could be eliminated from the deal early, and if your price is too low you may win the deal but take a hit to your commission check. My best advice is to focus on your prospect or customer’s best interest first. Take the time to listen and really understand their business issues and problems, and recommend solutions that solve those problems. When you take this approach consistently you’ll find that you begin to price each solution in a manner that creates a win for your customer, your company and yourself.

This is Jeb Blount, the Sales Guy. If you have a sales question please send it to salesguy@quickanddirtytips.com.

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