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Ajit Ghuman
Director of Pricing and Packaging, Twilio Flex, Twilio | Formerly Narvar, Medallia, Helpshift, Feedzai, Reputation.comFebruary 23

In my experience, most Sales teams think the pricing is too high, and often they have the data to back it up with win/loss calls suggesting price as the reason a customer did not buy a solution. But sometimes these may be customers that fall outside your ICP. At other times, they may just need more ROI justification to make the case for your product internally. Often this is excacerbated by the quota they carry and a short-term focus on closing deals in the near-term. 

On the other hand, many executives fail to appreciate how prospects really value their solution. They may think they have more leverage on price since they have a more capable solution - while the prospects may not care for many of the additional capabilities. Ad-hoc pricing changes are often meant with sales resistance, unless clearly articulated and justified.

Therefore to attempt to change pricing is really about going back to listen to customers and prospects. 

  1. What do they feel about your products differentiation from competition?
  2. How well do they think your current packaging/offering meet their needs?
  3. What is their perception on the ROI of using your product?

Once you understand how customers value your offerings? You can devise a plan to increase prices by increasing value or the perception of value?

Depending on the root issue. This could be done via:

1. Adding value added professional services offerings

2. Breaking down a large software package into smaller chunks that prospects find easier to attribute value to - sometimes the parts can be valued more than the original sum.

3. Creating ROI analysis across your customer base and enabling your sales team with this analysis

4. If you feel you are simply priced lower, you can just pilot a price increase in one sales region or customer segment and track the impact of the change. In this case, you could increase discounting thresholds to lower Sales team resistence. 

When your VP of Sales understands that all your work is centered around helping her justify value, so that she can make more money - any resistance will fade away.