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Focus Research Insight: Do you have a preference to talk pricing up front?
In our most recent Hosted VoIP study, we found that 45% of buyers prefer to get a ballpark estimate up front, while 49% instead prefer to discuss requirements first, and get a specific price quote later on. In addition, 6% of buyers claimed they had no preference at all. Do you see the initial contact as the time to just talk requirements, infrastructure, and features? Or, do you see immediate ballpark figures are the best way to determine if moving forward would waste everyone's time?
To partake in a poll on this, visit http://www.focus.com/polls/view/do-you-have-preference-talk-vendors-about-pricing-front/
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4 Answers
As a Sales Engineer, it's the first thing I ask our Sales People to do, "Get an idea of the budget they're working with". This has helped to close numerous sales by allowing me to design a solution that not only meets the customer’s needs but falls within the constraints of their budget. It also saves time for the sales people as they generally don't have to make multiple repeat visits or spend much time justifying/negotiating the price point.
To me it depends on if the client is budget focussed - so requirements have to made-to-fit within a price-range or if they are service focussed, where meeting their needs with room to grow takes precedence.
Personally I tend to have an idea of what a service/product is worth to me, so regularly ask what the average price is in order to save wating my and the sale-persons time looking at a solution that wont go ahead.
Honestly, having a ballpark going into the meeting never hurts. If the client is still willing to meet with you that lets you know that they a.) are interested in your product/service, and that they are b.) have the financial ability to pay for that product/service if they determine it fills a need.
I do not recommend that pricing be discussed in the initial contact because most of the time the clients do not really know exactly what they want. If they have a scope of work which is well defined then go ahead. I feel more comfortable learning about the clients expectations and goals before giving a quote.
Also, the tendency is to put out a quote that is lower than what is really required.
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