If you consistently lose on price, you likely don't understand your own unique value. Interview your current customers to find out why they *really* buy from you. You may discover hidden differentiators—like personalized support or company stability—that you can then explicitly work into future sales conversations.
Related Insights
Instead of general discovery, conduct "loss calls" with prospects who chose a competitor. This provides unfiltered feedback on what capabilities truly matter, where your product falls short, and whether your pricing or sales process—not just features—was the problem.
Customers don't care about your P&L or that a competitor is a "side hustle." To justify a higher price, you must clearly communicate tangible benefits like better organization, time savings, or superior staff, which directly improve their experience.
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.
An ROI case isn't a one-time sales pitch; it's an ongoing conversation. Implement periodic 'value audits' to formally demonstrate the value your product has created. This builds internal evangelists and gives you tremendous power in future renewal or price increase discussions.
Instead of guessing your competitive advantage, ask potential customers which other solutions they've evaluated and why those products didn't work for them. They will explicitly tell you the market gaps and what you need to build to win.
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.
Don't wait for customers to ask about your value. Assume they view you and your competitors as commodities. It's your job to proactively explain why you're different and what additional value they receive for your price, effectively telling 'the rest of the story' beyond the basic product features.
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.
