Field Notes / Pricing & proposals

Your cheapest clients are setting your prices.

In short: Keep raising your rates until you hit real resistance. If nobody pushes back, you don’t know where your ceiling is.

Most of the sales calls you take are quietly deciding what you think you’re worth.

A client walked me through their pipeline recently. The large majority of their sales calls were with very price-sensitive buyers. Small budgets, lots of haggling, every dollar questioned.

That’s fine on its own. The problem was what it did to their head.

When a bigger buyer came along, one who’d picked them for their expertise and not their price, they quoted the same way. All those other calls had trained them to expect pushback, so they priced to avoid it.

We split every prospect into three buckets. People who were mostly shopping on price. People who wanted them specifically for something they were known for. And people who were looking for the best partner they could find, wherever that was.

Each bucket got its own pricing expectations. The third bucket, the most lucrative one, finally got priced like it.

On the very next call with one of those buyers, they raised their quote by 25 to 30 percent. The customer didn’t blink.

That’s the part that stuck with me. Nothing about their work changed between Monday and Tuesday. No new hires, no dramatic process change. The only thing that changed was what they believed their work was worth. 100% psychological shift.

If you’ve never had a client push back on your price, you don’t actually know where your ceiling is. You only know where your comfort zone is.

Keep raising your rates until you hit real resistance. Until then, your rates aren’t telling you much.

← All Field Notes