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Small companies price services on what it costs them. Big companies price services based on the value their customers will gain.

I’m amazed at the number of companies and salespeople who are falling into the “small company pricing trap” of basing their pricing off of what it costs them. When you do this, you are completely discounting the value of what you as a salesperson and your company bring to the business community. If you’re going to price solely based off your cost, then there is no reason to even have a salesperson. The cost of the salesperson is a cost that could be eliminated. No matter how tempting or how pressured you feel, it is imperative to always price based on value. To do this means you must take the time to understand the real needs of the customer. And guess what? They’re not price!

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