How to Test Price Without Losing Credibility

Pricing often seems like a random choice, a number we arbitrarily pick, that could either deter customers or miss out on revenue. In the early days, we often tend to either copy someone else’s price, or just pick a very small one to make our offer more appealing, but the price doesn’t just signal what is affordable. Before we can decide on a price, we need to consider what is the real outcome the customer is looking for? Is it a service that frees up a few hours each week? Or does it prevents a huge financial loss? The answer to these questions will change the price we are able to charge, regardless of how much work it takes us to provide the service.

Another exercise you can do is to talk about the benefit in terms of an outcome instead of a feature. Think about what effect this will have on the buyers’ daily life instead of what the product has, and if the benefit is something that can be quantified (like time, or reduction in waste), ask people how they currently approach the problem and what it’s costing them in time or lost value, then use those responses as a benchmark for the maximum price you could charge, because that’s already what they’re “spending.”

It is a mistake to apologize for the price before the client has complained. Any sign of wavering in your words or in your voice will cast doubt on a perfectly good price. State it matter-of-factly and watch for the client’s response. Don’t say anything. If the client’s initial response is contemplative rather than horrified, you are in the ballpark. If the client immediately begins to talk about shopping around or putting off a decision, you may need to bolster your message rather than reduce your price.

The good news is that with even a small bit of practice, your conversation about price will go much more smoothly. Try this: Take 5 minutes and write out a sentence or two about why you have this offering and for whom it’s perfect. Take 5 minutes to practice saying the price without emotion. Take 5 minutes to think about what about the exercise made you feel icky. The more you practice, the more you’ll feel comfortable about the price, and the more confident you’ll feel as you say it.

If things are stuck, try a reframe instead of a price reduction. Shift the payment terms, the scope or the bundling to achieve the same price but with less psychological resistance. Perhaps portion the project out into phases so that you can achieve results along the way. You’re not trying to force the sale; you’re trying to match price to value. When the price and value are matched, you and your client can both feel good about the value proposition. That’s better than relying on discounting.