Effective pricing is not just a number; it is a value story. The ultimate test is whether a customer can accurately pitch your product's pricing and value proposition to someone else. This reframes pricing from a simple number to a compelling narrative.

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Product marketers often struggle to prove direct ROI. By influencing pricing strategy, they can make a tangible and measurable impact on revenue and ARR. Pricing is a form of value communication—a core PMM competency—making it a natural area for them to lead and demonstrate their contribution to the bottom line.

If a customer is shocked by your price, your marketing has already failed. Every public-facing asset—vehicle wraps, social media posts, uniforms—builds a perception of value that primes the customer to expect a certain price level before your team even presents an estimate.

Entrepreneurs second-guess pricing because they undervalue intangible benefits like time savings, convenience, and client relationships. They also wrongly assume customers are solely price-driven, when loyalty is affected by many other factors.

Instead of just sending a proposal PDF, record a two-minute video walking through the pricing. This 'eliminates the game of telephone' by allowing you to directly explain the value behind each line item to the ultimate budget holder, ensuring your champion doesn't miscommunicate the message.

Don't let your personal perception of what's 'expensive' limit your earning potential. Set your price high based on the value you provide. It is easy to lower a price that gets no buyers, but impossible to know if you could have charged more if you start too low. Never say no for the customer.

To set your price, ask clients what they would do if your service didn't exist. Their answer, like hiring a full-time employee, reveals the 'replacement value.' This figure provides a concrete benchmark for your pricing and uncovers powerful marketing language.

Price objections don't stem from the buyer's ignorance, but from the seller's failure to establish clear economic value. Before revealing the cost, you must build a business case. If the prospect balks at the price, the fault lies with your value proposition, not their budget.

When negotiating a price increase, if the customer accepts immediately without pushback, it’s a strong signal you've significantly underpriced your product. Buildots' founder prepared for a negotiation over a 4x price increase, but the client agreed instantly, revealing the product's true value.

Price sensitivity decreases when customers have absolute clarity on what they're buying, when technicians present options with confidence, and when the business consistently provides multiple choices. These three "C's" build perceived value, allowing for higher prices.

When increasing prices, the communication strategy should be direct and confident. If you truly believe the product delivers value commensurate with the new price, there's no need to hide the change. Evasive language or trying to 'shy away' suggests you doubt your own product's worth.