Question

Asked: Oct 09, 2009

when presenting multiple price points, what is more ideal? Presenting higher to lower or lower to higher?

Categories: In Sales and Marketing > Presentations and Sales Pitches
Industries: In Internet & New Media > Web Development and Design

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Answers

The answer to this question is ALL ABOUT COMMUNICATION OF EXPECTATIONS with your prospect or client.

Having 15 years of sales experience, I have found it best to discuss price expectations BEFORE presenting your price.

What's their budget?
What do they expect to pay?
What are they willing to pay?
What value do they place in your product?

If you want to be perceived as an old-school, used car salesman, however, present the highest possible price first and create an adversarial relationship with your prospect or client.

But if you want to be considered a respected consultant to your client or prospect, discuss price expectations BEFORE presenting price.

Kevin Gaither is a highly motivated, seasoned, hands-on sales executive with a 15+ year track record of consistently exceeding sales goals, building highly motivated, energized and productive sales teams, and excelling at developing new business. Kevin Gaither is a highly independent, assertive, creative and confident self-starter who thrives in a fast-paced and entrepreneurial company. Kevin Gaither has the proven ability to recruit, hire, train, retain and develop top-ranked sales teams by clearly articulating objectives using analytical thinking, reference to facts and best practices. Kevin Gaither has excellent leadership, prioritization, communication and analytical skills. Kevin Gaither has the ability to develop and clearly articulate objectives using both analytical thinking, reference to facts and best practices.

Source: http://www.kevingaither.com

Answered: Oct 11, 2009


There are exceptions to every rule, but the rule is that it's most effective to present three price points, in the following order:1. Lowest (present it as cheapest, but no frills)2. Highest (present it as deluxe, all the options)3. Middle (best "value" for the money)The logic is something like this: the people that want the deluxe option are most likely going to stick with it; so are the hardcore bargain hunters; but the people who are on the fence - who can be upsold - are left with something that's palatable, even tempting, to them. If you leave them with the most expensive option, they'll go back to the cheapest option. Net-net, you're going to get more upsells and very few downgrades this way.Also, I would avoid trying to present more than three. You can fine-tune the options a la carte, but settle on the main price point first.

Answered: Oct 21, 2009

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