Price Perception in Sales Strategy

A company contacted me, seeking assistance with an important sales presentation while their top salesperson was on vacation. Specializing in building management systems, they had an opportunity for a significant contract involving multiple buildings. During a late-night call, the CEO passionately outlined why their offer surpassed the competition's. As I took notes, he revealed that while their company asked for a mere $50K, the competitor proposed $300K.

Puzzled, I asked, "You stated the superiority of your offer, yet you're only asking $50K. With such value, shouldn't you aim higher, like $500K? Let's go with that figure, and I'll go for a successful close." One might expect excitement at this suggestion.

However, the next day came a message of postponement for the presentation, citing future outreach. While this delay could be attributed to legitimate reasons, it's plausible that the company experienced discomfort at the prospect of asserting its true worth, leading to a retreat from our proposed strategy. And I was likely brushed off as delusional since killing the messenger is easier.

Either way, it's a reminder that self-sabotage and fear of stepping outside comfort zones aren't exclusive to individuals; they afflict organizations, big and small, including governments and militaries. Such tendencies block potential growth opportunities. Embracing the notion that "best" often commands a premium price, a lesson learned from my experience as a diamond dealer, underscores the value of confidence in one's offerings. Just as people opt for pricier Macs over equally good PCs, perception and the willingness to assert value play vital roles in success.