Price pressure often arises earlier in the sales process than during negotiations. When a customer focuses primarily on price, it can mean that the differences between providers have not become sufficiently apparent. Attention then shifts to what is easiest to compare: the amounts on the quotation.
In this article, we look at what precedes that. How well you research the customer and their issue partly determines how much value they attach to a solution. Those who make that value visible early in the sales process have a different conversation about price at the end.
When does price pressure actually arise?
Price carries more weight when a customer has little insight into the value of a solution. A solution only becomes truly relevant when it is clear what problem it solves and what benefits that brings to the organization. Therefore, it helps to first thoroughly investigate the customer's situation, consequences, and desired results.
The clearer the client perceives the impact of an issue, the better they can assess the value of a suitable solution. Price thus becomes part of the overall consideration, alongside, for example, result, quality, and risk.
Why do many sales conversations turn to solutions early on?
Solutions are tangible, whereas the value behind an issue often needs to be investigated first. This preparation builds confidence, but it can also cause a conversation to quickly move towards a presentation. The salesperson recognizes a problem and immediately links a solution to it, while the customer might still be investigating their own issue further.
As a result, a significant part of the value often remains out of sight. Consider, for example:
- the consequences of the problem for processes;
- the impact on employees or customers;
- the impact on revenue, growth or efficiency;
- the risks if the situation persists;
- the priority that the issue has within the organization.
As soon as this context is missing, a proposal is more easily assessed based on characteristics that are directly comparable. Think of functionalities, service, delivery time, and ultimately price.
When does price become the most important factor of comparison?
Price is a simple point of comparison when other differences are more difficult to assess. People simplify complex decisions by looking for information that is clear and measurable. Price is a clear example of this.
In a complex B2B process, management can easily determine that supplier A costs €120.000 and supplier B €105.000. It is much more difficult to determine in advance which supplier will deliver more customer value, less risk, or higher productivity over two years.
When conversations offer little insight into that broader value, price naturally carries more weight. Price pressure therefore often reveals something about the sales process that preceded it.
How do you make value visible before price comes up?
Value becomes visible when you investigate what an issue truly means for the organization. Many commercial conversations begin with what a customer wants to improve. A stronger conversation goes a step further and explores what lies behind that question.
Think about questions like:
- What is happening today because this problem exists?
- What are the consequences of that for customers and employees?
- How does it influence results, growth, or collaboration?
- What happens if the situation is still the same in twelve months?
Questions about the consequences and impact of a problem help customers better understand their own situation. This creates a stronger connection between the issue and the value of a solution. Consequently, the salesperson's role shifts from presenting a solution to helping understand the issue. That is often precisely where the difference in value arises.
How does a supplier distinguish themselves during the sales conversation?
A supplier distinguishes itself primarily through the value it adds during the conversation. Products, services, and expertise naturally play a role, but the customer often experiences the difference even before a proposal is presented.
That happens when a conversation helps the client see their own situation more clearly. For example, by:
- to ask relevant questions;
- to make connections and patterns visible;
- to make consequences concrete;
- to weigh different options or priorities against each other.
In this way, the sales conversation itself becomes part of the value you deliver. The customer gains new insights and can therefore better assess which solution suits their situation. This also makes the difference between providers more visible.
The price discussion often starts months earlier.
The way a sales conversation is conducted partly determines how a customer views the price later. Therefore, it is valuable to look back at the conversations that preceded a quotation.
What insights has the client gained? What impact has been made concrete? What consequences and priorities were discussed? And above all: has the conversation helped the client see more clearly what is at stake?
That is often the key to a stronger conversation about price. When the client has a clear picture of the issue, the potential consequences, and the value of a solution, he compares more than just the amounts on the quote.
The commercial challenge therefore often lies earlier in the process than in the negotiation itself. A strong price discussion begins with conversations in which you make the value of a solution visible together with the client.
Want to discuss this topic further?
Are you curious how many of your sales conversations revolve around exploring impact, consequences, and urgency? Then take a critical look at a recent sales opportunity. What new insights did the client gain during the process? Which business consequences were made concrete? And how clear has it become what is at stake?
Questions of this kind often yield surprising insights. In training sessions and commercial development programs, we explore how professionals create more differentiation in their conversations, making value visible sooner and giving price a more balanced place in decision-making.
Curious what this could mean for your sales team? Contact Armin and discover which training suits your commercial ambitions.
