Should the price be upfront or later on in the sales conversation?

There's an open debate on whether to mention prices upfrontor later in your sales conversation. In the classic approach, pricing comeslater on in the sales conversation. It is not something discussed early. Evenin the sales presentation itself, the price is often information that appearsat the end. The flow of the presentation starts with the problem, a discussionof possible solutions, an explanation of your service, and then you bring upthe pricing issue. But is it always the best option?

There are benefits of starting with the price upfront. Youcommunicate to your buyers that you value transparency. Price transparency isone of the key elements that buyers appreciate. If you discuss prices early,you start building trust and credibility from the beginning, when trust is moreimportant. In addition, clients will listen more to your presentation. Furthermore,with early pricing information, you can immediately read the buyers’willingness to pay. If the prospect is not qualified, you are wasting your andthe buyer's time, so it’s better to know upfront.

However, there are also benefits of making the price appear later on in the sales conversation. Some say you should sell value first, and then convince buyers that the value is worth the price. If you start immediately with pricing, but the price is high, buyers might respond negatively. They will shut down their brain, and give less attention to everything else you say. Negative information early on in the sales conversation kills attention. Thus, you start explaining the benefits, you create customer engagement, you make sure they understand your offer, and then pricing appears. It is also a nice approach because it might signal that you care about prioritizing customer value over just trying to make a sale.

Which is best? It depends on your competitive advantage. If you offer a product similar to the offerings of others but cheaper, make the price appear early. If you offer a differentiated product with a premium price, make pricing appear later. If your product has a focused competitive advantage so that your product is best given the specific needs of your niche, pricing should also appear later. You first inquire about the needs of the customers. You make sure that they belong to the niche you serve best. You then explain how your offer satisfies their specific needs. Then, pricing appears.

Thus, most of the time, we would say it is better if prices appear later on in the presentation. With this recommendation in mind, sales professionals often make a terrible mistake during a sales conversation. The buyer inquires clearly early on about pricing, and the seller completely ignores the request and refocuses the attention on benefits. The script says that you talk about pricing at the end and if the buyer asks for pricing, you follow the script, refocusing the attention on benefits and ignoring the pricing question. It’s a mistake! You signal that you are not listening to your buyers. Then, comes a fatal flaw. In order to be polite and not directly reject the buyer's price inquiry, the seller mentions that before being able to offer pricing indications, he or she needs to acquire the buyer's information to understand the needs. Theoretically, it's a good reason. Except, most times, itis used as an excuse. Once the buyers figure out that pricing information could have been communicated before, they will get irritated. Your chances of closing will decrease.

If buyers ask for the price, tell the price. Period. Now, you can mention price ranges. You can mention that the price varies depending on chosen features and show different pricing options. You can mention you want the opportunity to explain the features in detail to help the buyers select the best-value deal. But you don’t just ignore the buyers' requests. If the buyers send you a message that they want price transparency upfront, you give price transparency upfront, even if your script says otherwise. Remember that a major complaint buyers have about sellers is that they don't listen because they follow the script. Buyers’ requests always come first, and sales scripts always come second.

I am also going to tell you something counter-intuitive. Ifthey ask for the price and the price is lower than the competition, you'll behappy to mention it. Of course. But if they ask for the price and your price ishigher than the competition's, you'd be worried. Still, if they ask, state theprice clearly and also – hear me well here – mention upfront it is higher thanmarket pricing. What? You are telling your buyer that the competitors arecheaper? Yes, you do. If the buyer is not an imbecile, he or she will figureout the market price anyway. Saying this information upfront builds trust. Itshows you are not afraid to hide pricing information. It shows you areconfident that your features and superior benefits are still worth the premiumprice. Yes, if the buyers ask, you tell them straight to their face that yourproduct comes with a premium price, and you say it with confidence,transparency, and straightforwardness. As always, you sell by reducing thebuyer’s uncertainty.

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