Navigating Price Objections: Balancing Value and Market Demands in Sales
Explore strategies for handling price objections, understanding market value, and knowing when to negotiate to close sales effectively.
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How to Negotiate Prices Appropriately
Added on 09/27/2024
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Speaker 1: Louis asks, how do you handle price projections when attempting to close a sale?

Speaker 2: I assume price objections mean that you're asking for too much money and they don't want to pay that? What's your take on that? It's not an easy show. You don't just come and get to read and check out. Are you sure? Yes, I'm very sure.

Speaker 1: I guess I would say if you give them a dollar value and they kind of like how we do here when we give statements of work to clients before they approve it, they come back with requests to take down or get tired.

Speaker 2: Do they ever request to charge them more?

Speaker 1: Sometimes I ask for more things and then we do change orders and you do get more money that way.

Speaker 2: Love it. Look, I think it's moments in time. Early on when I was building Vayner and I needed the leverage of clients and logos to tell people like, yes, it's not just I did it for myself and my family business. I do it for, at the time, Campbell's, the NHL, Pepsi, that mattered and so I was willing to take less. We've talked about spec work and nausea if you've watched the show, the D-Rock story. So I think it's a leverage game, right? Like who has the leverage? And so I think that every transaction has its own cadence. There is no blanket statement here. You have to understand what your product is worth but you also have to think, and this is where people get, again, this is where romance kills people. You say that you're worth $150 an hour and you don't quantify that you need this client right now because there isn't good deal flow or you wanna buy a ring for your girl or you need to do different things besides just shoot weddings because you wanna show a better portfolio to get other business. People are not using other variables and they go, well, I'm worth $1.50, fuck you. You're worth $1.50 in your head. The market decides what you're worth. You're worth $1.50 if people pay you $1.50. Consistently, always, always, and forever. You're not worth that. Look, there was two years ago where I prematurely tried to raise my speaking fee higher and the market was like, that's great, Gary, and you're the best speaker ever and this and that but that is just not where your price is at. And so, you are not entitled to anything other than what the people that are buying your stuff agree to. What you need to be smart about is understanding when's the right time to negotiate down because it's in your best interest or when are you negotiating down for no reason at all and you're declining your value. That's on you. That's being a good salesperson. That's being a good operator. So, I think everybody here needs to have a balance of both. You have to pull from opposite directions. When is it in your best interest? And then you deploy humility Kool-Aid at scale, right? The amount of times I will deploy humility in a world where my ego is on fire is often. You know what, Staphon? I want fire here. Ego fire. Give me ego fire. I've got nothing but ego and bravado but there's plenty of times I deploy humility because that's what that moment's game needs to be successful. I would tell you to not deploy romance. This is this and that. Deploy practicality of the moment. ♫ А, а, а, а ♫

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