Start-up pricing can be challenging, but this can be increasingly tricky when it comes to early sales interactions. There are many different models for start-up pricing . In some cases you may not have totally settled on a pricing strategy yet for your solution. Early interactions can become awkward if you are not sure how to handle those early pricing discussions. Here are a few tips from almost 20 years of VA Partners experiences with start-up pricing.
Pricing is Set
In some cases your pricing may be well defined. Here is what you get based on these parameters. It is easily covered on a call and likely you have a page set-up on your website.
Give Them a Range
Many times there are options or scope that affects the pricing significantly. You may have a range of prices that you can share. The trick is that customers will hear the lower of the range when you share it. You may want to frame at a high level what the difference is between the low and high end range.
Customized – Savings Versus Typical
We have a few clients that have very customizable solutions. There often needs to be a collection of the requirements or scope needed. One of the ways around the pricing squeeze early in the sales cycle is to talk about savings. For our one client that means on average 30% savings over how it is done “traditionally”. This of course needs to be rooted in reality, but this often allows us to move the opportunity forward.
You Can Always Go Down, It is Hard to Go Up
If you aren’t 100% sure on the price and you don’t want to lose an early opportunity. You may want to come a little higher than you would want to settle on to give you the ability to come a bit lower. The lower price could be explained by being a % off the regular price as an early client.
It is Okay to Unqualify Them
When we are working on a VA Partners prospect we always talk about pricing. We have a set model that works for us and the right clients. If that model will not work for clients we like to find that out sooner so we don’t waste their time and our time. It is okay to unqualify a prospect over pricing.
If you would like to talk through your pricing strategy please connect with me.
