Pricing Strategies for Consultants

"We have budget for $199,000," the procurement manager spat at me. I had a $325,000 deal forecasted, and we had 7 days left to close it. That was June, 2020. End of quarter. Egg about to be smeared all over my face. I paced around my house while my family swam at the pool. Cursing under my breath. Back then, I knew every negotiation tactic in the book. But that was the problem: My negotiation "strategy" was actually what I now call "random acts of tactics." A question here. A label there. Throw in a 'give to get.' There was no system. No process. Just grasping. Since then, I now follow a step by step process for every negotiation. Here's the first 4: 1. Summarize and Pass the Torch. Key negotiation mistake. Letting your buyer negotiate with nothing but price on their mind. Instead: Start the negotiation with this: “As we get started, I thought I’d spend the first few minutes summarizing the key elements of our partnership so we’re all on the same page. Fair?” Then spend the next 3-4 min summarizing: - the customer's problem - your (unique) solution - the proposal That cements the business value. Reminds your counterpart what's at stake. They might not admit it: But it's now twice as hard for them to be price sensitive. After summarizing, pass the torch: "How do you think we land this plane from here?" Asking questions puts you in control. Now the onus is on them. But you know what they're going to say next. 2. Get ALL Their Asks On the Table Do this before RESPONDING to any "ask" individually. When you 'summarize and pass the torch,' usually they're going to make an ask. "Discount 20% more and we land this plane!" Some asks, you might want to agree to immediately. Don't. Get EVERY one of their asks on the table: You need to see the forest for the trees. “Let’s say we [found a way to resolve that]. In addition to that, what else is still standing in our way of moving forward?” Repeat until their answer is: "Nothing. We'd sign." Then confirm: “So if we found a way to [agree on X, Y, Z], there is nothing else stopping us from moving forward together?" 3. Stack Rank They probably just threw 3-4 asks at you. Now say: "How would you stack rank these from most important to least important?” Force them to prioritize. Now for the killer: 4. Uncover the Underlying Need(s) Ignore what they're asking for. Uncover WHY they're asking for it. If you don't, you can't NEGOTIATE. You can only BARTER. You might be able to address the UNDERLYING need in a different, better way than what they're asking for. After summarizing all of their 'requests,' say this: “What’s going on in your world that’s driving you to need that?” Do that for each one. Problem-solve from there. P.S. These 7 sales skills will help you add an extra $53K to your income in the next 6 months (or less) without working more hours, more stress, or outdated “high-pressure” tactics. Go here: https://lnkd.in/ggYuTdtf

My actual New Year’s resolution is to put out more informative content. Let’s start with payment terms in a contract: 1) What is Payment Based on? Why are you paying? “Because they are doing work for me.” Sick, great response. I mean specifically, why are you cutting a check at that very moment? What triggered the need to pay (major project item, a time frame passed, job done, etc)? 2) Payment Structure There are many different ways that payment can be structured. Usually it’s dependent on the type of work (maybe someone is building software for you) and relationship of the parties (person or company is working with you on an ongoing basis). 3) Per Milestone/Project A common structure is payment per stage of a project (or just completion). Think construction: x% up front, x% once you hit some critical path item, and then finally x% when the job’s done. If this is what you’re doing, a clearly defined scope and understanding amongst the partiesis key. If the vendor/contractor gets paid after “kitchen repaired” and you thought that included appliance electrical work (and it doesn’t), it’s a payment dispute. 4) Quarterly/Monthly/Weekly Pay You could be paying for ongoing work that may end on a certain date in the future (or not). Think IT support for your company. Generally, you’re going to get an invoice on a certain day and have to pay within x calendar days (called Net X days). Timing of payment is important here. Can you pay within 15 calendar days (Net 15) of the date of an invoice? Maybe your company does check runs twice a month so that’s fine. Maybe that’s too fast for your accounts payable folks (or you). 5) Bespoke Payment Sometimes payment terms are unique and based on the industry/type of service or product. Like paying a base subscription fee (monthly payment) and an amount in additional once a certain amount of data has been used (milestone). 6) General Considerations A) Make sure there is a mechanism in place to handle disputed payments (like the kitchen example) (if you can hold that payment and pay whatever isn’t in dispute). B) If you’re the vendor, collection language is important (interest + fees). C) What happens to payments made upfront? Is it a deposit? If so, what happens to it? (Applied at the beginning? The end? Returned if work isn’t performed?) D) Can you off-set what you owe by how much you paid to fix the work the vendor did? E) What if we terminate the agreement? Consider language that clearly defines exactly what is owed (and what isn’t) when one party terminates the contract. F) Is payment final or just an estimate? Clarify, clarify, clarify. G) Is there a mechanism in place for when the scope/time/contract price changes? Very important and needed by both parties. H) In the same vein as G), are you approving (in writing) changes to the contract? Just a quick, non-exhaustive list of considerations for payment terms. Consult with an attorney.

I've analyzed 10,000+ sales calls and discovered something shocking… Elite closers NEVER discount when asked, "Can I get a better price?" While most reps panic and immediately cave, the top 1% have a completely different playbook 👇 Instead, they have a systematic approach that PRESERVES margins while CLOSING more deals. When you're quick to discount, you communicate TWO things that DESTROY trust: 1️⃣ "YOU CAN'T TRUST ME". They'll think: "Why didn't they give me the best price initially?" This makes them suspicious of everything else you've said. 2️⃣ "MY PRODUCT ISN'T WORTH IT". You're telling them you don't believe in your own value. If YOU don't believe it, why should THEY? Before using any strategy, run the objection through my H.E.A.R.T. framework: - H-ear them: "Cari, I appreciate the ask." - E-laborate: "Help me understand why you're asking?" - A-side: “Aside from the pricing, is anything else giving you pause?" - R-eclarify value: "What did you like most about our solution?" - T-ransition: Now use one of these 5 strategies... ➡️STRATEGY #1. THE REDUCTION CLOSE "Let's review everything in your package and remove what's 'nice-to-have' versus 'must-have.' Then we'll recalculate." You're NOT giving a discount. You're reducing what they're buying. Most prospects realize they want everything and end up paying full price anyway. ➡️STRATEGY #2. THE SUBSTITUTE CLOSE "I know we discussed Option X. Another option is Y, it does things 1, 2, and 3 but doesn't have 4, 5, or 6. However, it's $XXX less." Again, NO discount. Just a lower-priced alternative that creates value comparison. When they see what they lose, they often stick with the premium solution. ➡️STRATEGY #3. THE UPSELL VALUE GIVE "I can't discount, but I CAN include Premium Support for 30 days. Normally reserved for our highest tier and costs 30% more." The magic? They often upgrade after experiencing the premium feature! This is my personal favorite with the highest conversion. ➡️STRATEGY #4. THE 3 OPTION CLOSE Present good/better/best options BEFORE the price objection happens. When they ask for a discount, guide them to the lower option. This makes THEM decide between features vs. price. Instead of YOU deciding between discount or no deal. ➡️STRATEGY #5. FLEXIBLE PAYMENT TERMS Instead of cutting price, adjust WHEN and HOW they pay: → Half now, half in 30 days → Payments over 3 months → Net-30 instead of Net-15 One Fortune 500 client increased close rates 32% with this approach alone. ➡️THE LAST RESORT: GIVE TO GET If you absolutely MUST discount, NEVER give without getting something in return: "I can do 10% off if we add 5 more licenses." OR "I can do 10% off if you introduce me to 5 other business owners who could use our solution." You're conditioning how you do business AND maximizing value. — Hey sales pros, want to handle objections better? Go here: https://lnkd.in/g-uJ7ECX

Most founders are terrified of their own worth. The traditional business advice says: "Start low and build up." But after working with hundreds of entrepreneurs, I've learned something counterintuitive: Undercharging by 300% isn't just bad for your wallet, it's bad for your clients. Last year, I watched a brilliant consultant struggle with this exact problem. She was charging what felt "safe" instead of what she was worth. When she finally made the shift to premium pricing, something beautiful happened, and it changed how I think about creating fair value exchanges. Here's what I learned about honoring your worth while believing in mutual success: 1. Commitment Over Comfort When people invest appropriately, they're committed to their transformation. Fair pricing attracts founders ready to do the work, not just observers. I've seen consultants charge too little and watch clients disengage, then price fairly and see those same clients implement everything with dedication. 2. Partnership Filter System Fair pricing attracts the right founding partners for mutual growth. You're not just serving clients, you're choosing who you grow with. This creates beautiful partnerships where both parties are invested in extraordinary outcomes. 3. Excellence Creation Mechanism Appropriate pricing gives you resources to create exceptional experiences and deliver transformation at the highest level. When compensated fairly, you can focus entirely on results instead of worrying about covering costs. 4. Positioning Clarity Tool Your pricing positions the value of the outcome, not just the service. Fair pricing communicates the level of transformation you're committed to delivering and signals your belief in what's possible. 5. Abundance Building Practice Every time you price fairly, you're practicing abundance thinking. You're believing there's enough success for everyone and modeling the mindset your clients need for their own growth. 6. Sustainable Impact Engine Fair pricing creates the foundation needed to truly serve at your highest level. This sustainability allows you to show up fully and build long-term relationships based on mutual respect and shared success. This isn't just about charging more, it's about creating systemized, beautiful partnerships where transformation becomes inevitable. When you price your work fairly, you're not being greedy. You're being generous with your belief in what's possible for the founders you serve. The question isn't "Will people pay?" The question is: "Do you believe enough in the transformation you deliver to price it fairly?" The future belongs to those confident enough to value their impact appropriately. It starts with one conversation where you honor both your worth and theirs. __ Enjoy this? ♻️ Repost it to your network and follow Matt Gray for more. Want help applying this in your business? Send me 'Blueprint' and let's chat. Only for founders ready to scale.

Stop trying to "crush" objections. That aggressive mindset is why so many deals stall in your pipeline. Here's what changed everything for me - I stopped seeing objections as battles to win and started seeing them as opportunities to understand. The 3C Mindset Approach transformed how I handle pushback: - Curiosity first. When a prospect says "it's too expensive," my first move isn't to defend pricing. It's to ask: "Help me understand what you mean by that." - Continue the conversation. Success isn't overcoming the objection. It's asking one more question that keeps the dialogue going. - Reach a conclusion together. Sometimes that's a next step, sometimes it's learning this isn't the right fit. Both are wins. I've heard every objection in the book across 250,000+ cold calls. The ones that led to closed deals weren't the ones I "crushed." They were the ones where I got genuinely curious about what the prospect was really saying. When you shift from defending to understanding, everything changes. Prospects feel heard instead of sold to. Conversations deepen instead of ending. Trust builds instead of erodes. Your prospects aren't obstacles to overcome. They're people trying to solve real problems. 📌 What's one objection you hear constantly that you could approach with more curiosity? ✨ Enjoyed this post? Make sure to hit FOLLOW for daily posts about B2B sales, leadership, entrepreneurship and mindset.

“What do you say when a client asks you to discount your fee?” I recently participated in a conversation where this thought-provoking question arose: As I listened to the responses, I noticed a common thread: if we're not careful, our instinct can lead us to accommodate requests for discounts—all the while risking the perception that we are a “discount brand.” While negotiations are a natural part of business, rather than immediately offering a discount, it's essential to pause and ask insightful questions to clarify the request. Here are some questions to consider: ❓ What exactly are you asking for—can you specify your needs? ❓ Can you clarify which services are your top priority, so I can assess if any modifications are feasible? ❓ If you don’t move forward with my offering, what would be your alternative? ❓ Have you considered breaking this project into stages to make it more manageable? ❓ What specific outcomes are you hoping to achieve, and how do you see my services facilitating that? ❓ How does our pricing compare with your expectations or budget? ❓ What value do you see in my services that would justify the current fee? ❓ Are there parts of the service that you feel could be adjusted to meet your budget? By asking these questions, we can better understand client needs while maintaining the integrity and value of our services. What strategies do you use when addressing fee negotiations? #BusinessStrategy #Value #ClientRelationships #Negotiation #ProfessionalDevelopment #Consulting #Entrepreneurship

Underpricing isn’t just a mistake—it’s a fast track to burnout. Let’s fix it... because it’s one of the biggest things new consultants screw up. Here’s the deal: when you’re coming out of a corporate role and starting your own consulting business, setting your prices can feel like a complete guessing game. Go too high? You’re afraid clients will run for the hills. Go too low? Now you’re stuck doing premium-level work for bargain-basement rates—and good luck raising those prices later. I see this all the time. People underprice themselves, and it snowballs into burnout, frustration, and a business that’s running YOU instead of the other way around. Let me hit you with some facts: • 72% of new consultants say pricing is one of their biggest challenges (Source: Consulting Success). • Consultants who charge too little are 50% more likely to burn out in the first year (Source: Freelancer’s Union). Pricing isn’t just about numbers—it’s about confidence. Get it wrong, and you’ll feel stuck before you even start. Here’s What Happens When You Don’t Fix This You’ll constantly second-guess yourself: “Am I charging too much? Too little? What’s everyone else doing?” You’ll struggle to scale: Clients will expect discount rates forever. Worst of all? You’ll work twice as hard for half the money, and the resentment will creep in. Here’s How to Fix It Study the Market: Look at 3–5 consultants doing similar work. What are they charging? What’s included? How are they packaging their services? Know Your Floor: Calculate the minimum you need to charge to hit your income goals. Don’t just guess—do the math. Offer Choices: Create 3 pricing tiers: Basic: A small, no-frills package. Standard: Your main offer, full value for your regular rate. Premium: Add extra value and charge more. Test and Adjust: After every project, ask yourself: Did I charge enough for the value I delivered? If not, bump it up. Repeat until it feels right. The Truth About Pricing Your pricing tells people how much you believe in your own value. If you don’t charge what you’re worth, no one else will take you seriously. But when you own your rates, you attract the right clients, the right opportunities, and the right results. Don’t wing it. Grab my "Consultant Pricing Guide" and get clear on your rates, your value, and how to package your services to grow your business. Comment "PRICING" or DM me and I'll send it your way.

"You're too cheap to be good." A lost client's final words before ghosting. That feedback blew my mind at first, but then I realized The brain sees low prices as danger signals I lost 80% of deals by pricing too low. Then brain science fixed it. What your brain needs to know about pricing psychology: Most think higher prices scare clients away. Science says the opposite is true. Your brain actually devalues what comes cheap. 7 Psychological Pricing Secrets of High Earners (use without being manipulative) 1/ Status Activation Cheap prices trigger survival mode. Premium prices activate achievement centers. Do This: ↳ Price slightly above market average ↳ Highlight exclusivity over accessibility 2/ Anchoring Effect First number sets the brain's reference point. This doubled my close rate instantly. Do This: ↳ Show premium tier first ↳ Compare to higher-cost alternatives 3/ Pain-Pleasure Switch Price resistance is really fear in disguise. Understanding this tripled my revenue. Do This: ↳ Address money fears directly ↳ Frame price as investment, not cost 4/ Value Stacking Multiple benefits beat single features. This turned my $2K offer into $20K program. Do This: ↳ Bundle complementary services ↳ Show combined value before individual pieces 5/ Scarcity Signals Limited spots trigger loss aversion. This works because brains hate missing out. Do This: ↳ Cap enrollment numbers clearly ↳ Set authentic registration deadlines 6/ Choice Architecture Too many options paralyze decision making This simplified my offers and boosted sales. Do This: ↳ Offer exactly three tiers ↳ Make middle option most attractive 7/ Risk Reversal Safety signals unlock the buying brain. I use this to remove final resistance. Do This: ↳ Offer strong but simple guarantees ↳ Show proof before they ask Smart Tips: ↳ Test one trigger weekly ↳ Track client objections ↳ Let pricing evolve naturally Truth is: Pricing isn't about the number. It's about the value story your brain tells. Master this, and you'll never discount again. P.S. Which pricing trigger resonates most with you? Let me know in the comments ⬇️ ➡️ Master the psychology of pricing here --> https://lnkd.in/gMcXA2-Y ------------------------------------------------- ♻️ Share to help others price with confidence. ➕ Follow Shannon for more brain-based biz growth.

A prospect asked one of my reps for a discount yesterday. Back in the day, we might have just said “yes - here you go!” And tried to get the deal closed. But here is how we approached this: 1/ Confirmed why they are asking: “Completely understand the desire for a lower price. So that I am on the same page, what is driving the ask here?” We needed to comprehend if it was a overall pricing issue, a billing issue, an approval issue etc 2/ Confirmed that we are the chosen vendor: “Before we go to our finance team, they are going to ask me - are we the chosen vendor?” Essentially, if we get this price approved, are we moving forward? 3/ Confirmed next steps: “If we were to get this approved, what other steps remain on your end before we get final signature” Get them to lay out each step of the process so we know where the contract stands 4/ Asked for something in return: This step will be dependent on your company, but you simply cannot give up a lower price for nothing in return. So is this more seats, longer contract, faster close, referrals etc Morale of the story - an ask for a discount is a doorway into negotiations. But before you even go ask, start with this framework to understand where your deal sits and what you can ask for in return. Happy closing. Go get em.

Price isn't just about a number—it's about the mental model that supports it. 🧠 When OpenStore approached us about OpenDesk—their AI customer support tool for eCommerce brands—they faced a classic behavioral challenge: pricing doesn’t exist in a vacuum. The behavioral POV on value is that it’s subjective and created in the moment. That was true here, too. It wasn't actually the price point that was holding them back. It was the invisible mental accounting happening in customers' heads. 😬 Merchants mentally categorized support tools as expenses, not investments. This mental accounting created a pricing perception problem. When something falls into your "expense" bucket, your goal is to minimize it. When it's in your "investment" bucket, you evaluate ROI instead. 💡 When we reframe the value proposition, willingness to pay changes. Instead of "better customer support," we positioned OpenDesk as a "customer retention driver" – shifting its category from cost center to revenue generator. With this new mental model established, we designed pricing strategies that reinforced this investment framing: 💲 A hybrid model combining subscription + per-ticket charges that balanced predictability with value 🔢 A usage-based option with an interactive calculator that made total costs transparent—similar to how merchants evaluate ROI on other investments 👥 A per-seat model that simplified budgeting while aligning costs with team structure Curious to see where they landed, or to get ideas on optimizing product positioning or pricing strategy? 👇 Check out the case study in the comments. #BehavioralDesign #AIStrategy #ProductPricing