Ryan Dohrn explains a pricing strategy using three tiers (good, better, best) with guardrails. Present prices upfront, recommend the middle option, and walk away from prospects who won't meet your minimum.
Hey friends and fans, Billion Dollar Sales Coach Ryan Dohrn here, and a lot of people ask me about my pricing plans and why I'm such a big fan of not doing individualized proposals and instead offering people 3 pricing options. Now let me just be clear, there are circumstances, products, and services that oftentimes do require proposals, but what I've observed is the vast majority of the clients I work with, quite honestly, the only reason we do proposals is because a boss wants to do proposals Or because we've done proposals forever. What I'd be suggesting to you as your sales coach is that most people don't want to wait for a proposal. They want you to come to the conversation with ideas and with pricing ready to go. Now, you could be wrong. I mean, you might be off as you have the conversation. You might discover that there's more things that you need to add to the recommendations that you've brought. But just recognize, friends, when you typically offer 3 pricing options, okay? You have one on each side and then you've got that one that's in the middle. These 2, the low and the high, are called guardrails. Guardrail pricing is really where it's at. You've heard me talk about it before. So whether you do gold, silver, bronze, or good, better, best, or 1, 2, 3, what typically happens is when you put 2 pricing options on each side, people tend to gravitate towards the middle. Now people say, yeah, but don't you leave money on the table? No, I don't, because what I'm doing is I'm recommending based on past business success. So, I'm pretty sure that that middle option is going to work very, very well for them. But if they want to stretch and go higher, cool. But if they go below the lowest option, I really need to turn them down so that I don't let them down. You don't know the number of times I've said to somebody, hey, I'd rather turn you down than let you down, because you're wanting to go below the lowest price bar that we actually have set, and I know you're not going to have the success that you're hoping to get. By engaging with our product or with our service. Never forget, friends, 3 pricing options— it's not just science, it's actually nature as well. There's real power in the rule of 3. All right, get out there and sell something, make us all proud, would you? We'll see you on the next tip.
