Are you making it difficult for your customers to buy from you? If your pricing is complicated or too different from your competitors, you might be.


Make it an easier “yes” for your customers. Eliminate objections up-front by simplifying your pricing.


Here are five steps to simplifying your company’s pricing and improving the sales process.


1. Understand Your Buyer.

The first step to a solid pricing plan is understanding buyers’ values and processes.


Put your company’s market research data to use. Find out:


  • How do your customers want to buy from you?
  • How do your customers want to engage with your sales team?
  • What other products and services are customers purchasing from your organization?


Now dive deeper. Use buyer personas to better understand how your buyers make their decisions.


2. Understand Your Company’s Internal Constraints.

Make sure your pricing isn’t killing your profitability. Lowering your prices might not be an option. But simplifying your pricing can still work to grow sales.


  • Are your cost drivers and pricing structures in line with your pricing?
  • What gross margin do you need to reserve?


3. Check Out the Competition.

If your pricing is too far off from your competitors, this will complicate buying. In fact, it will raise more buyer objections.


If your pricing is too high, buyers won’t include your company on their shortlist.


If your pricing is too low, your buyers might not understand your company’s value. At least not without further explanation (and complication) from a sales rep.


And if your pricing is too complicated, your buyers will just get confused. Difficult-to-understand pricing can particularly hurt RFP situations.


Pricing that is too far off can dis-incentivize product/service usage and satisfaction. Take a CRM solution that charges based on the number of contacts, for example. To keep the price lower, customers would probably not upload all of their contacts. This drastically lowers the usefulness of the CRM product. Over time, you would see customer attrition when a better-priced solution came along.


4. Consider the Customer’s Customer.

Don’t stop at understanding how your buyers are engaging with your company. Also understand their business model and tie your pricing into the way their business works.


Take a printer supply shop, for example. The shop’s business model is based on price per printer supply kit. Say you sell them printer cartridges. This customer won’t benefit from subscribing to a set monthly delivery of printer cartridges. Rather, pricing your printer cartridges on a per-unit basis would be much more beneficial. Now the shop can easily calculate the cost and margin of each printer supply kit.


Create a win/win for your customers by taking their business model into consideration.


5. Brainstorm Ways to Make Pricing Equitable for Your Customer.

What is your customer willing to spend? Let’s go back to the printer cartridge example. Let’s say…


  • It costs you $1 to manufacture your printer cartridge
  • It costs you $1 to distribute that printer cartridge
  • You want $1 profit on each cartridge
  • A dealer costs the customer $1 per printer cartridge


So the price to the customer is $4.


A typical small printer-supply shop doesn’t have premium positioning. They can only charge $20 per printer supply kit. A $4 printer cartridge would add up to 20% cost for them. This is cost prohibitive.


A big-box office supply store, however, can charge $40 per printer supply kit. For them, a $4 printer cartridge is only a 10% cost. To a big office supply store, buying your $4 printer cartridge is more attractive.


There is a lot to think about, here. Do you want to focus on the small printer-supply shops? If so, you may need to get your costs down. If you’d rather go after the big-box office-supply store business, your price may be fine. But if you’re still struggling, you may need to simplify their buying process.


Make It an Easy Yes.

Make it easy for your customers to say “yes” to your products and services. Simplify the buying process for them. Eliminate objections before they occur. Ease the path for your sales organization and build customer trust with simpler pricing.


Aaron Bartels

Helps clients solve the most difficult challenges standing in the way of making their number.
Learn more about Aaron Bartels >

He founded Sales Benchmark Index (SBI) with Greg Alexander and Mike Drapeau to help business to business (B2B) leaders make the number. The world’s most respected companies have put their trust in and hired SBI. SBI uses the benchmarking method to accelerate their rate of revenue growth. As an execution based firm, SBI drives field adoption and business results.


His clients describe him as a consultant who:


“Makes transformational impacts on me, my people and my business”


“Solves my most difficult problems that to date we have been unable to solve ourselves”


“Brings clarity to an environment of chaos”


“Has real world sales operations experience making him qualified to advise us on a variety of sales and marketing challenges”


“Is able to spot proven best practices that once implemented will make a material impact on my business”


“Constantly challenges status quo and compels us to act”


“Focuses on execution and driving change to stick in our environment”


“Makes good on his promises while enabling our business to realize his projected results”

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