Hey, Scott from The Sales Mastermind here. Today’s edition only takes 4 minutes.
Since September, I have watched over 80 SaaS sales calls by 12 different sellers.
Here are two consistent mistakes I've seen and what to do instead:
"You can…" Talk Track
Almost every rep focuses on all the possibilities of their software.
Imagine you're buying a car, and the seller starts telling you about the ways you can use the car:
- You can drive to the grocery store
- You can open this door
- You can fill it up with mangos if you drive to a place that sells mangos
- You can…. understand how frustrating this style is
Buyers think, "That's nice, but why should I care?"
What to do instead: Speak exclusively about use cases and problems. Better yet, have the buyer lead with examples.
A good framework is:
- Open with a question to create a specific problem
- Get confirmation that this is a problem the buyer wants to solve
- Solve the problem you just created
- Help the buyer feel they have ownership of the solution
Let's think about cars again. I'm tall, 6'6'. My wife is 5'6.
Expert sellers open with a question:
"Are you both going to be driving?"
Get confirmation:
"Yes."
Next, they'll solve the problem they created:
"Great, considering the height difference, you probably want to understand how easy it is to update the cockpit positioning" (car people call the driver's seat the "cockpit," don't ask me why…)
Once the seat is adjusted, the seller will invite me to sit.
They are creating the impression that I already own the car.
This is entirely different from opening the door and explaining:
"You can move the seat back and forth with this lever and up and down with this handle."
Presenting Pricing
Presenting the pricing is usually awkward, confusing, and disjointed.
In one harrowing example, a rep opened a new Chrome browser and typed numbers into the URL bar. Between the platform fee, add-on fees, and some other fees, it wasn't easy to understand.
Typing 75 + 3*25 + 4*17 + 83 = complete confusion and befuddlement.
In another example, a rep says, "Our pricing is... complicated." Before explaining one of the most complicated pricing models I've seen.
Think about the two examples above:
- Without context, numbers make complete sense to the seller but utterly baffle the buyer.
- If the seller struggles with the pricing, how can the buyer be expected to understand it?
- And remember - A confused mind never buyers
What to do instead
Pricing needs to be simple, visual, and proactive.
Simple
In late stages, offer between 2 and 3 options, each being an individual number. Keep it simple.
Good = $1 Better = $3 Best = $4
In the early stage, give a range:
"Based on our discussion and similar businesses I've worked with, we'd be looking at between $3,000 and $1,000 per month."
Then stop talking. Do not justify, do not explain, stop talking.
Note: I recommend the larger number first.
When you say $3,000, it acts as an anchor. Your buyer will be pleasantly surprised if the final price is $2,500. When you say $1,000 first, they'll feel cheated if it's $2,500.
Visual
Always have a visual aid to help explore the pricing.
It could be an Excel spreadsheet, an online calculator, or a slide deck. It could even be the pricing page of your website.
When there is something visual, it adds credibility to the number a seller is quoting.
Without a visual aid, pricing comes across as made up and can feel "icky" to many buyers.
Proactive
Bring up pricing before they do.
Everything is more expensive than the buyer wants to spend. Even if your product isn't, your buyer will still tell you it is to try for a discount.
Buyers often know a rough budget or budgeting process they'll have to go through.
If they can only get $100 approved, and your price is $10,000, no matter how much you compromise, it ain't happening.
When you proactively discuss price early, you'll keep working with those in the same ballpark. And disqualify anyone who is orders of magnitude away.
Bonus: Get a call recording software.
I recommend Avoma - tell them Scott Cowley sent you.
Every call I've watched was recorded. But only 17% were using a dedicated call recording software.
These tools are game changers as they record the call, transcribe it, AND pull out highlights.
It means you can later check what was agreed, the details of a unique request, or find inspiration for follow-up emails. All in a user-friendly interface.
I've found that without a dedicated tool, most reps don't refer back to their calls; with a tool, many reps check transcripts and snippets 1-2-3 weeks later.
If this sounds interesting, please use this affiliate link for a free trial. It costs you the same but gives me a small boost.
Let me know what you think! it to a friend
Until next week,
Scott Cowley
PS If you're ready:
Sales Tear Downs
Is your business closing some deals, but not enough? I work with many sales leaders to do a top to bottom tear down of what is working, what isn't and what to do about it. Sound interesting?
(Last two available for 2023)
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