Here’s an exercise for you:
People are often afraid to be expensive and get stuck on a number that feels right.
What you should be doing instead is keep increasing your price in enough demos and negotiations until you find the level where true resistance is met.
“Hey Phill, this sounds awesome. Everything is great but for that price, no way!”
You must hear that 5-10 times before you know that your pricing can’t be increased. That’s how you know the true value of your solution.
Also, by doing this exercise, you learn that deals are NOT LOST because of pricing.
They are lost because:
- Prospects don’t believe you are supporting them well enough
- Prospects don’t trust that you can deliver on your promise
- Prospects do not feel comfortable enough to give you their time and effort
At ComX, we learned that changing the way we invoice had a higher impact than changing the price. Since we started out we had at least 12 iterations on that.
P.S. Book recommendation on niches: Zero to One by Peter Thiel