How to make pricing negotiations in COVID recovery period your friend

Pricing is a complex matter – especially in services.

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The complexity has further increased due to COVID.

But should you change your pricing during the early recovery phases? These are the strategies that work.


The common perceptions (mostly true):

- Prospects more conscious about spending

- We need to show we are accommodating

- Competition is ready to do it for less to survive


There are 3 ways to respond -


Response #1

Reduce prices

+ Survive and close faster

+ Client doesn’t move to competition

- Working upwards to normal pricing is an uphill task

- Perception of your cost structure gets solidified


Response #2

Hold your ground

+ Chant quality over quantity

+ Retain positioning

- Lost opportunities can be expensive


Response #3

Get creative

Negotiate:

a. Add a min relationship value for a discount

b. Provide deferred benefits, like PSCS/ warranty

Change the paradigm:

a. Allow sampling more products/ services

b. Require adoption of other products/ services

Engage deeper:

a. Require 25% of discounts to go to a charity

b. Tie to other wins – say stock price

+ Changes the way the cost-benefit is seen

+ Creates new revenue opportunities for tomorrow

+ Reminds them of actual pricing of your services

- Too hard to deploy for simple buys


Pricing is beyond ‘price’.


The key thing to consider today is not how to get more, but how to build a relationship that keeps getting you.


Have you tried any creative ways?