Blog + Diamonds
VIDEO SUMMARY
Confidently Navigate Pricing Discussions: Crucial Steps Revealed
Hey there, hustlers! Ever felt like you’re stuck in a loop when trying to justify your prices? 😩
We’ve all been there! From awkward first dates to negotiating car prices, it’s a wild ride. 🚀
But guess what? We’ve cracked the code and uncovered the secrets to mastering those tricky conversations. 💼
Prepare to be mind-blown as we dive deep into the art of negotiation, human dynamics, and why answering ‘Why should I date you?’ isn’t as crazy as it sounds. 😂
Get ready to level up your game and leave those price-justification woes in the dust. 🌟
Don’t miss out on these game-changing insights! Tap that link now and discover the keys to confidently navigating any pricing conversation like a pro. 💡
Let’s smash those sales goals together! 💡
#NegotiationNinja #PricePerfection #UnlockYourPotential
Step-by-Step Guide
Step 1: Recognize Emotions and Take a Deep Breath
Description:
Acknowledge any feelings of anxiety or panic when faced with justifying your prices. Take a moment to calm yourself and detach emotionally from the situation.
Implementation:
- Recognize the onset of anxiety or panic when faced with price justification.
- Take a deep breath to center yourself and calm your nerves.
Specific Details:
- Understand that feeling anxious or panicky when discussing prices is a common reaction, especially when feeling pressured by clients.
- Acknowledging your emotions is the first step in regaining control of the situation.
Step 2: Objectively Approach Negotiation
Description:
Approach the negotiation objectively, understanding that it’s a standard part of business and not a personal attack.
Implementation:
- Remind yourself that negotiation is a standard part of business interactions.
- Separate your emotions from the negotiation process to maintain professionalism.
Specific Details:
- Understand that clients questioning prices is not an attack on your worth or abilities but rather a standard part of business discussions.
- Emphasize the importance of maintaining professionalism and objectivity during negotiations.
Step 3: Identify Mutual Interest
Description:
Recognize mutual interest as a foundation for productive negotiation.
Implementation:
- Assess whether both parties are interested in working together.
- Identify areas of mutual benefit and shared goals.
Specific Details:
- Mutual interest provides a basis for productive negotiation, indicating potential for finding a mutually beneficial solution.
- Highlight the significance of mutual interest in paving the way for successful negotiation outcomes.
Step 4: Initiate Creative Problem-Solving
Description:
Propose creative solutions to address pricing concerns while preserving mutual benefits.
Implementation:
- Express enthusiasm for working together while acknowledging price discrepancies.
- Suggest exploring creative solutions to meet essential needs while accommodating budget constraints.
Specific Details:
- Frame the discussion around finding creative solutions rather than focusing solely on price negotiations.
- Encourage open dialogue to identify essential requirements (must-haves) and desirable additions (nice-to-haves).
Step 5: Focus on Must-Haves and Nice-to-Haves
Description:
Distinguish between must-have and nice-to-have elements to prioritize negotiation points.
Implementation:
- Identify essential requirements that must be met for both parties to proceed with the project.
- Differentiate between essential components (must-haves) and optional enhancements (nice-to-haves).
Specific Details:
- Prioritize addressing must-have elements to ensure the project’s core objectives are met.
- Explore possibilities for incorporating nice-to-have features within budget constraints.
Step 6: Guide the Client through Prioritization
Description:
Assist the client in prioritizing essential project elements based on their objectives and budget constraints.
Implementation:
- Review the must-have and nice-to-have options with the client, emphasizing the importance of prioritization.
- Guide the client through a discussion to determine which elements are critical to the project’s success.
Specific Details:
- Present the client with the options and discuss which elements are most crucial for achieving their objectives.
- Encourage transparency and open communication to facilitate a productive discussion on prioritization.
Step 7: Respond to Client’s Decision
Description:
Address the client’s decision regarding the desired project components within their budget constraints.
Implementation:
- Acknowledge the client’s choice and willingness to invest in all desired elements, if applicable.
- If budget constraints are a concern, provide recommendations based on expertise and project objectives.
Specific Details:
- Express appreciation for the client’s flexibility and commitment to the project.
- Offer guidance on optimizing project components within budget limitations, ensuring the best possible outcome.
Step 8: Advise Based on Expertise
Description:
Provide expert advice and recommendations to guide the client in making informed decisions.
Implementation:
- Utilize expertise to assess the value and impact of different project components.
- Offer recommendations aligned with the client’s objectives and budget considerations.
Specific Details:
- Emphasize the importance of leveraging expertise to maximize project effectiveness and return on investment.
- Assist the client in understanding the potential benefits and trade-offs associated with various project options.
Step 9: Encourage Subscription
Description:
Encourage viewers to subscribe to the channel for more valuable content.
Implementation:
- Request viewers to subscribe to the channel for access to additional content and support.
- Highlight the benefits of subscribing, such as access to more educational resources and updates.
Specific Details:
- Emphasize the value of subscribing in supporting the channel’s growth and enabling the creation of more helpful content.
- Express gratitude to viewers for their support and engagement with the channel.
Step 10: Address Viewer Concerns
Description:
Acknowledge and address potential concerns or criticisms regarding the presented advice.
Implementation:
- Acknowledge viewer concerns about the advice’s perceived arrogance or potential pitfalls.
- Provide logical explanations and examples to illustrate the reasoning behind the advice.
Specific Details:
- Clarify the intention behind the advice, emphasizing its logical foundation and potential benefits.
- Invite viewers to consider the advice from a different perspective, focusing on its practical application and effectiveness.
Step 11: Understand the Symmetry of Logic
Description:
Acknowledge the concept of the symmetry of logic, which suggests that if a principle works in one scenario, it should apply similarly in others.
Implementation:
- Recognize the principle of symmetry of logic as applicable to human dynamics and social interactions.
- Understand the implications of this concept in sales and relationship-building contexts.
Specific Details:
- Consider whether a principle or belief holds true across different situations or if it only applies selectively.
- Reflect on the application of symmetry of logic in evaluating the validity of beliefs and behaviors.
Step 12: Sales as Human Dynamics
Description:
View sales as a manifestation of human dynamics and social relationships, emphasizing the importance of understanding interpersonal interactions.
Implementation:
- Acknowledge the role of social dynamics in sales interactions.
- Recognize sales as a construct rooted in social relationships and communication.
Specific Details:
- Understand that successful sales depend on effective communication and relationship-building skills.
- Emphasize the significance of understanding human behavior and dynamics in sales strategies.
Step 13: Equality in Relationships
Description:
Promote equality in relationships to foster positive interactions and avoid power imbalances.
Implementation:
- Encourage viewing sales interactions as exchanges between equals rather than hierarchical transactions.
- Highlight the importance of respecting the autonomy and dignity of both parties in sales negotiations.
Specific Details:
- Emphasize the value of approaching sales interactions with mutual respect and consideration for each party’s perspective.
- Avoid situations where one party seeks to assert dominance or control over the other.
Step 14: Avoid Justifying Prices
Description:
Discourage the practice of justifying prices, emphasizing the autonomy and validity of pricing decisions.
Implementation:
- Assert the autonomy of pricing decisions based on individual calculations and considerations.
- Encourage presenting prices confidently without feeling the need to justify or negotiate.
Specific Details:
- Emphasize that prices are determined through careful calculation and consideration of various factors.
- Discourage the habit of feeling obligated to justify prices in sales interactions, as prices are set based on individual business needs and calculations.
Step 15: Maintain Price Confidence
Description:
Promote confidence in presenting prices without negotiation, emphasizing the value and integrity of pricing decisions.
Implementation:
- Communicate price points with confidence and clarity, emphasizing their validity and non-negotiable nature.
- Reinforce the importance of maintaining price integrity and confidence in sales interactions.
Specific Details:
- Emphasize the value of maintaining confidence in pricing decisions to convey professionalism and assertiveness.
- Encourage sellers to stand firm on pricing without compromising their integrity or perceived value.
Step 16: Request for Subscription
Description:
Encourage viewers to subscribe to the channel for further insights and support.
Implementation:
- Invite viewers to subscribe to the channel for access to more valuable content and resources.
- Highlight the benefits of subscribing, such as continued learning and support.
Specific Details:
- Express appreciation for viewers’ engagement and encourage them to subscribe to support the channel’s growth.
- Emphasize the role of subscriptions in accessing additional content and staying updated on relevant topics.
Step 17: Address Misconceptions
Description:
Address potential misconceptions or criticisms regarding the presented advice.
Implementation:
- Acknowledge viewer concerns or objections regarding the advice provided.
- Provide clarification and logical explanations to address misconceptions effectively.
Specific Details:
- Address any perceived arrogance or misunderstandings regarding the advice, focusing on logical explanations and practical applications.
- Encourage viewers to consider the advice from a nuanced perspective, taking into account its broader implications and relevance.
Step 18: Recognize Compatibility
Description:
Acknowledge the importance of compatibility between clients and vendors in fostering positive working relationships.
Implementation:
- Understand that not every client is the right fit for your services, and vice versa.
- Acknowledge red flags, such as immediate challenges to pricing, as indicators of potential mismatch.
Specific Details:
- Reflect on past experiences to recognize patterns of compatibility or mismatch between clients and vendors.
- Understand that compatibility contributes to a more enjoyable and successful working relationship.
Step 19: Trust Intuition
Description:
Trust your intuition and past experiences to guide decisions regarding client engagements.
Implementation:
- Pay attention to your instincts and gut feelings when assessing potential clients.
- Draw upon past experiences to inform decisions about which clients to work with.
Specific Details:
- Trust your intuition when evaluating client interactions, especially when faced with challenging or confrontational situations.
- Use past experiences as valuable lessons in identifying compatible clients and avoiding problematic engagements.
Step 20: Evaluate Relationship Dynamics
Description:
Consider past relationship dynamics, such as dating experiences, to gain insights into client interactions.
Implementation:
- Reflect on past relationship experiences to identify parallels with client interactions.
- Use insights from personal experiences to inform responses to challenging client inquiries.
Specific Details:
- Draw parallels between dating experiences and client interactions to better understand dynamics of validation and respect.
- Consider how responses to challenging inquiries can impact the perception of self-respect and professionalism.
Step 21: Discern Legitimate Questions
Description:
Differentiate between legitimate and unnecessary questions in client interactions.
Implementation:
- Assess the validity and relevance of client inquiries, especially regarding pricing justification.
- Recognize that not all questions require a detailed response, particularly those aimed at undermining pricing decisions.
Specific Details:
- Exercise discernment in responding to client inquiries, focusing on addressing genuine concerns while avoiding unnecessary justification.
- Understand that questions challenging pricing may stem from clients’ negotiation tactics rather than genuine inquiry.
Step 22: Communicate with Support and Love
Description:
Communicate advice and insights from a place of support and care for the audience’s well-being.
Implementation:
- Frame advice and guidance as supportive measures aimed at helping viewers navigate challenging situations.
- Express empathy and understanding while offering practical advice for managing client interactions effectively.
Specific Details:
- Emphasize the intention behind sharing insights as supportive and helpful rather than dismissive or arrogant.
- Encourage open dialogue and feedback from viewers to foster a supportive community environment.
Step 23: Encourage Engagement
Description:
Invite viewers to share their questions and comments for further discussion and support.
Implementation:
- Prompt viewers to engage by inviting them to share their thoughts and experiences in the comments section.
- Express willingness to respond to viewer inquiries and provide additional guidance as needed.
Specific Details:
- Encourage viewers to actively participate in the discussion by sharing their perspectives and seeking clarification.
- Foster a sense of community engagement by responding to viewer comments and addressing their concerns.
Step 24: Respond with Respect
Description:
Commit to responding respectfully and thoughtfully to viewer questions and comments.
Implementation:
- Approach viewer inquiries with respect and consideration, regardless of the tone or content.
- Provide thoughtful responses that address viewer concerns and contribute to constructive dialogue.
Specific Details:
- Maintain a respectful and courteous tone when interacting with viewers, even in the face of disagreement or criticism.
- Demonstrate openness to differing viewpoints and a willingness to engage in meaningful discussion.
Step 25: Express Gratitude
Description:
Express gratitude to viewers for their engagement and participation in the discussion.
Implementation:
- Thank viewers for their contributions and feedback, acknowledging their role in the community.
- Express appreciation for viewers’ support and interest in the content.
Specific Details:
- Show genuine gratitude for viewers’ engagement by expressing appreciation for their comments and feedback.
- Foster a sense of belonging and appreciation within the community by recognizing and valuing viewer contributions.
Step 26: Encourage Subscriptions
Description:
Encourage viewers to subscribe to the channel for continued support and access to valuable content.
Implementation:
- Remind viewers of the benefits of subscribing to the channel, such as access to additional resources and updates.
- Invite viewers to subscribe to support the channel’s growth and receive notifications of new content.
Specific Details:
- Highlight the value of subscribing as a way to stay connected with the community and access ongoing support and guidance.
- Encourage viewers to become part of the channel’s community by subscribing and engaging with the content regularly.
Step 27: Invite Feedback
Description:
Invite viewers to provide feedback on the content and suggest topics for future discussion.
Implementation:
- Encourage viewers to share their thoughts and suggestions in the comments section.
- Express openness to feedback and willingness to incorporate viewer input into future content.
Specific Details:
- Welcome viewer feedback as a valuable resource for improving the quality and relevance of the content.
- Foster a collaborative relationship with viewers by actively seeking their input and incorporating it into content creation processes.
Step 28: Conclusion
Description:
Wrap up the discussion by summarizing key points and expressing gratitude to viewers for their engagement.
Implementation:
- Provide a brief summary of the main insights and takeaways from the discussion.
- Express gratitude to viewers for their participation and encourage them to continue engaging with the channel.
Specific Details:
- Recap the main themes and lessons discussed in the video to reinforce key points.
- Thank viewers for their support and encourage them to stay connected with the channel for future content and discussions.
COMPREHENSIVE CONTENT
Strategies for Justifying Prices
You’re probably feeling a lot of anxiety when you have to justify your prices. I’m going to give you two different strategies that you can apply today, so this becomes an issue of the past.
Dealing with Client Inquiries
Have you ever been in a position where a client who’s interested in working with you, and that you’re also mutually interested in working with, has asked you this very painful question: “Why does it cost this much?” or “I can’t afford this”? And you start to go into a panic attack. You get that cold sweat, your heart starts racing because you think, “My God, it’s so long since I’ve heard from a prospect, a live lead, and now they’re asking me this very difficult question. I feel compelled to capitulate, to compromise, and lower my prices immediately. And I… I… I don’t know what… my brain freezes.” Or maybe you have a really strong negative emotional reaction like, “How dare you? Why would you say that to me? You want to hit them back. It’s like, that’s an insult to me as a human being, to my training, and everything I’ve ever done. How dare you?” It’s indignant for you to even ask that question, and you give an unprofessional outburst. Have you been in that situation?
Story and Advice
I want to tell you a little story. There’s a friend of mine; he called me late at night in a little bit of a similar situation, where he was panicking. A prospect that he really wanted to work with because this person, this guy, was very influential, high net worth, high net worth person. He’s like, “I really want this gig.” And this friend of mine called me and said, “Chris, they asked me like, ‘We can’t afford this, it’s too much money,’ and I really want to work with them. What should I be doing?” And here’s how I counseled him.
So first of all, take a deep breath. All business is a negotiation. Take your emotion out of it. They’re not insulting you. It’s just how two business people talk about a thing. It’s a price, it’s not you. It’s a price, it’s not your self-worth. It’s a price, it’s not the quality of your work. It’s none of those things. And you need to remain super objective here. And I’ve been in situations like this. I was counseling this friend of mine in the exact same way. I’ve handled this very specific thing, which is this: If we know they want to work with you and you want to work with them, this is a very good thing because when two parties are mutually interested in working together, anything can happen, and you can negotiate your way through all of it. It’s when one party doesn’t want it that there’s really no point. So, you want to work together and you see mutual benefit. This is what a deal is structured on. This is the foundational layer. You get to use this line, and I’m going to say it to you, and hopefully, you can use it in.
Negotiation Strategy
Your own business, which is, “Hey, it sounds like we want to work together, which I’m very excited to do. I can’t do it for the price that you’re asking for. How can we get really creative and design this in such a way that you get what you need, the have-to-have, and then we can talk about the nice-to-have? So, let’s start there. What is it that you have to have?”
If you’re a videographer, it could be like, “We have to have the shoot. We have to have the finished edit that’s color graded. Those are the have-to-haves, and it has to be delivered by this date. We get that. So, with that, that’s the MVP. This doesn’t work at all. What are the nice-to-haves?”
Well, it has some title design, has a 3D animation product demo, and it has some extravagant locations. If we say that the basing that you want can be delivered for this price, I can possibly give you one of those three. Which of those three are the most important and critical to the success? Based on what we talked about, I feel like it’s option two or option three, but not option one.
So, you can guide them through this process, too, to say like, based on what you want, you can spend money on these other things, but I’m not sure that you’re going to get good ROI on that. And you guide them through that process where the client reaches out and says, “You know what? We love that you’re flexible. We love your transparency, your style of communication. We actually think we want all three. We’ll go find some more money. How much more is it going to cost?”
That’s a wonderful outcome, right? You can say, “Great, fine, we’ll do that.” Or if they’re like, “You know what? We got what we got for a budget,” which is more likely the case, there of the three, which one do you recommend?
Then, this is where you can really lean in on your expertise and be an advisor or trusted on the project and say, “Look, as much as I want to make it look like that, that’s going to be a lot of unnecessary money being spent. Let’s save a couple bucks, but this is where I think you’re going to feel it and when you’re going to get the best results given the objectives you’re after.”
And you can do that. Hey, before we go any further, my team just told me that over 60% of you that watch this channel are new viewers, but you’re not subscribed. So, I’m just going to ask you, if you’re finding this to be valuable, please go ahead and hit the subscribe button. It helps us with analytics, but more importantly, allows me to teach more people and to feel like I’m doing the right thing to help you make a living.
Psychological Perspective
Doing what it is that you love may be overwhelming for you because maybe you’re still new in your business, you’re not used to sales, and especially you’re very conflict-diverse. I hear you, I feel you, but I want to point out a couple of other things that might help you see this from a different perspective, from a human psychological level.
You’ve heard me talk about this before, so let me talk about this. There’s something I need to clarify with all of you, and I know there’s a lot of emotional energy around this, that some of you think the position that I take and the thing that I’m advising you is very pompous and arrogant and it’s the fastest way to go bankrupt. But I just want to check in with you about the logic and how I’m looking at this.
What am I talking about? A little while ago, and we’ll link that video right here so you can see it, is I said in a workshop, “Never justify your price because justification is a sign of conceding the higher ground to your prospect. And if we just map this out to other things, then you’ll see why it makes sense.”
Now, your initial reaction is going to be very emotional, like, “Of course, your clients need to know how you charge, why you charge. You’ve got to tell a whole story.” But if you just pause that thought for a second, and I want to look at things and introduce this concept to you, and I’ve talked about it before, it’s called the symmetry of logic, where if it works one way, then it should work in most other ways. But if it only works in one instance and every other instance in your life it doesn’t work, maybe you have to question whether or not this is a truth or just something you want to hold on to be true.
Human Dynamics in Sales
Let’s talk about human dynamics because sales is human dynamics. It’s social relationships. It’s a construct, right? So, if you meet somebody, somebody of the opposite sex or whoever you’re attracted to, you really want to get together with them, and you have some esteem, you have some self-confidence, you think you have something to offer the world. It’s not like you’re some kind of simp, okay? So, you’re an equal in this relationship. You’re not like a serial dater where you’re just looking for body count here; you’re looking for a long-term relationship, you think, “Is this the one?”
So, you meet them. If the first thing they say to you is like, “Why should I date you?” They’re asking you to justify to them why you’re worthy of even having this conversation on a date. Now, many of you are saying, “Hey, no problem, let me explain. Well, I have a good job, and I have good credit, or I have a nice car.” How does that make you feel about you? And what they’re interested in, are they interested in something other than you, or these markers for them? Is that the way you want to begin a relationship? Okay, maybe you’re comfortable giving those answers, but let’s try it the other way, where you come up to someone that you’re really attracted to, that you like, and the first thing you say to them is.
Equality in Relationships
“Tell me why I should even talk to you, why should I date you?” Would you ever do that? And you’re probably going to say no, that’s insulting, Chris. Why would I do that? I’m the one who’s interested in them. So, we want to enter these relationships as equals. We don’t want to see the higher ground when they ask these kinds of questions. And in most industries other than the creative services space, people do not justify their prices.
You go in and ask a car dealership why is a car priced this way. Try that. Go to any supermarket and ask why does a can of beans cost 78 cents? Why does that head of lettuce cost 54 cents or $3? Why does this green juice cost $9? Go to the car wash, ask them why is it $9. Some of them will explain, some of them will not, but many of them, you’re like, “This is uncomfortable to even ask.” So, if it’s uncomfortable for you to ask, why do you think it’s good for you to answer this kind of question?
Pricing Logic
Your prices are your prices, and through a series of your own calculations in terms of overhead, profit margin, cost of living, everything that you need, your level of experience, your level of quality, you’ve determined this is your price. And at this point, all you can do and all you should do is present to your prospects, “This is the price. I’m not really negotiable on the price. If you don’t want to work with me, I totally understand, because for every customer, there’s a vendor, and I probably am not the right person for you.”
And I find that any prospect who immediately challenges being on the price and asks me to justify, I already know it’s going to be a long day. And I’ve done enough business where I’m like, “You know, the last time I took on a client like that, I didn’t enjoy the experience.” And I want you to reflect back on your life. The last time I dated a person that asked me all these questions for me to justify myself, to make me prove myself to their parents, that relationship did not go well. And maybe it did work out for you, and if it did, by all means, keep doing it.
We have to understand that if it doesn’t apply in most cases in our life, why would it apply in this one way? Because, you know why? Because we’re so used to answering questions, justifying ourselves, pleasing other people, because we’re people pleasers, we’re conflict-diverse, and we think every question is a legitimate question. It is not. Not all questions are legitimate. Answering “Why is it this much?” or “Justify your price” is not a legitimate question, in my opinion.
I know that sometimes when I share short clips with you all that you start to get really triggered with response like, “How come this person can be such an arrogant a-hole?” And it’s like, the best way to lose all of your clients. That’s why I wanted to spend this time and give you a little bit more context and expand the conversation. You can see it’s from a point of view of support and love and to make sure that you don’t just throw yourself at a project and lose all semblance of self-respect and control. Because actually, your clients will respect you more for it.
So, if you have additional questions or comments, I’d love to hear them. Go ahead and drop them below, and I’ll do my best to respond.
