Go big first up

I just smiled. One professional acknowledging the skill of another.

The sales presentation was flowing:  

• Credentials – tick
• Business case for the service – tick
• Light open question – did it make sense – tick
• Call out the elephant in the room and address it head-on – tick
• Light open question two – did that make sense – tick
• Third party proof & testimonials – tick
• Light open question three – could this be of value – tick.

Then into the different service bundles:

Option A: The Rolls Royce

All this wonderful stuff, you get this and this and this. Elite that, masses of that, and big business impact.

Light open question four: “What would that do for your business?”

Pause, waiting for the answer.

Then the price. Even though I was expecting it, I was still impressed with how it caught me. $35,000 for 12 months.

The classic pricing manoeuvre: make the first price big. It anchors people’s expectations. Anything after that will look like terrific value.

Most businesses do the reverse – start low and build to high. Even though all the research proves that you make less money that way.

And so, it unfolded.

Option B: Quite good

Still get some bells and whistles, a solid level of business impact, and just $2,500 per month. With a minimum of three months commitment.

Despite all my training and what I knew about anchoring I still felt the relief of a lower price.

And then a clever re-framing of the timeframes.

By making the number smaller and only for three months it suddenly looks more affordable. $7,500 vs $35,000.

It was their most popular package.

Option C: Ordinary

A bare minimum, ‘at least you’re making an effort’ package, and $1,500 per month.

And as I found out afterwards their lowest selling proposition.

My client was ready to sign up for Option B on the spot.

I stopped the presentation before any damage was done. Afterwards we talked through what would maximise their business value and the timeframes to deliver that.

And then I went back to negotiate a service bundle for the client at a rational price.  

Still, it was a close thing. The power of anchoring was very effective.

If you need help with increasing your business value, feel free to get in touch.

Contact Alex on 02 4023 5958 or email alex@deliveringresults.com.au.