TL;DR – When discounting starts to feel like your only weapon – don’t change your pricing; change your positioning
This weekend I got reminded about the time I was responsible for pricing at my former employer.
One common thread of complaints was: Our pricelist needs to be lowered.
The odd thing was that the complaints came from countries with the world’s highest living standards.
We also saw that some countries were consistently selling at pricelist level (and often above) – for the same product, in the same industry, against the same competitors …. with top-tier win rates.
Here’s the thing
When discounting starts to feel like your only weapon, often your price isn’t wrong; your story is wrong.
Price is a story in the minds of your customer.
- about a better future – a future they desire
- about the end of their frustrations
- about gaining an advantage
What it does is magical. They’ll start to believe your product is something they deserve and can’t live without.
When this story is absent, you can’t blame your prospect for their natural reaction, i.e., Demanding more scope for a far lower price or worse, postponing the deal, ghosting you, or even buying nothing at all.
So how do you solve this
Assuming your product is solid, the answer is in positioning.
Position your SaaS product in a way you become incomparable in the eyes of the right customer will give them the story to buy … with urgency.
Remember, no matter how bad the economic conditions or how turbulent the situation is – prospects will happily buy solutions that solve valuable and critical problems – and pay a premium for them without hesitation.
Dropping your price is a sign of weakness
Daring to take position is a sign of strength
Question for you to reflect upon
What stories are your prospects telling themselves about your solution?
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