Hello Reader,

Answering Sales and Buyer-related questions is something I love doing.

My whole vision and mission is about providing ideas and help that can allow you to win new deals, because when you win new business and money flows in, you feel great.

So, over the next few weeks, I am going to share some answers to questions that I have received from people via email and social media. They may be questions that you have had in the past or they may not be!

If you have never had any concerns about Pricing for a Project then you can press delete now 🥲

If the issue of pricing has been something you have struggled with or wondered about in the past then read on. This email is made for you 😎
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Kristina’s question on how to price for a project:

What a great question and a subject many business owners find a challenge.

I have also been in this position myself where I have been asked to quote for a project and because I didn’t approach it in the right way, I won the business but I left a lot of money on the table.

So when this happens, here is the approach to take to get the right result. Note it's not about sending in a proposal and hoping for the best!

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Step 1 - Be sure you have understood the extent of their problem

The biggest mistake that most business owners in this situation make is that they don't dig enough into the problem and the level of frustration that the prospect has.

All too often people listen to what they want to listen to rather than what is REALLY going on with the prospect. If you don’t fully understand what the challenge is, then you are always likely to price badly.

In all reality, the bigger the problem and the more urgent the timelines are, then the more people will pay.

The way to understand the extent of the problem is to ask good open questions.

Questions such as ‘How big of a challenge does this present for you’ and ‘Talk me through the issue and how long its been going on’ will allow you to find out more about the actual issue they are dealing with. This is always step 1. If there isn't a problem (or a desire) then getting people to pay for anything will be tough.

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Step 2 - Understand the implications of not solving the problem

The second key point is understanding the implications of their pain.

If I have a really bad toothache then the implications of this are that I won’t be able to concentrate on anything else which could affect my work, which could affect my income, which could affect my lifestyle etc….

When you EMPATHETICALLY ask further questions related to the problem then prospects start to share what impact it has for them. The stronger the impact, the more likely you are to price it correctly IF the prospect believes and trusts you to solve their issue.

Asking questions such as "What would be the impact of not solving this problem in the next few weeks/months?" or "How will this affect you personally within this role?"

Even in business-to-business deals, buyers still make personal based decisions and go out of their way to recommend solutions to others IF the issue is causing them embarrassment or challenge in their roles. If they believe it can help them solve a problem, which can make them look good, they will buy.

Providing they have the budget of course, which takes us nicely to step 3.

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Step 3 - Be open to approaching the subject of money

We have to get comfortable with money and numbers if we are to know how to price properly. It's a huge stumbling block for many and it's also very often the reason why they waste time and emotion creating proposals that then don’t go anywhere.

To start with, you should have a sense of value of your own time but many think that this is the right way to price, and you need to be careful about this.

Sometimes others don’t value time in the same way as we do. They may undervalue or may even overvalue.

I won a deal 2 years ago for a training project and I was cockahoop. I priced it at £17k and I was thrilled. Until, that is, they said to me that they had budgeted £30k for the project and so were pleased it had come in way under budget! Doh!!!!

If you don’t feel comfortable with your own value, repeat the figure you would like to earn time and time again. Whilst in the shower, whilst out on a walk. Repeat this phrase:

"The investment for my services is <insert your dream figure>". Make it become second nature to you so that when you are asked by a prospect, it rolls off the tongue.

Also, ask some questions to measure their budgets and thoughts around money.

"Tell me how you have gone about investing in similar projects in the past?" or "Where does a project like this fit in with your budget plans?"

Another great question to use is the budget range question. Pick a lower and higher range for the solution (which should ideally say 30% above and below where you want to be) and say "Typically when we have done projects like this in the past, it has ranged between x and y. How does this sound to you?"

Watch for the reaction and response you get. Do they look surprised at that figure or happy at what you have said? Handling the reaction is key but that’s for another email.

The most important thing is that you have the discussion in the first place.

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Step 4 - Don’t send a proposal, present it

Building on the last point about watching people’s reactions, it's why I also always recommend that you don’t send a proposal to someone but arrange a follow-up meeting with them to present it.

When you do this, you get a chance to watch their reaction to the figures and details they share. You can ask them "How does this figure sound to you?" and watch how they answer.

The reality is that if you have priced the project correctly and talked about how you solve the problem then it shouldn't be a surprise and it should then be a case of asking them their thoughts.

You may at this stage get a "Thanks and we will have a think about it" which is also what Paul has messaged me about. So we will cover that in next week’s email but in summary for this week.

If you have:

• asked the right questions about the problems the prospect has,
• understood the impact it is having on them, and
• if you have approached the ‘money subject’ you should be in a better position to win the deal at a rate you are happy with!

I hope that has answered your question KB!

Wishing you all a brilliant week ahead.

Until next Saturday, keep smiling and stay focused on becoming a fly on the wall of the brain of your buyer.

James

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