What are some steps sales executives and CEOs should take before jumping into negotiations with clients?
My one bit of advice is understand in each deal if you can charge twice your higher price ever. And then try to do that.
This is a terrific exercise to drive your deal size up.
It does >not< mean rip off your customer.
What it does force you to think about is providing a true solution to a big problem (more on that here: A Solution Sale Can Capture 3-20x the Revenues of A Tool Sale. With Almost the Exact Same Core Product.).
$1,000 a month is a lot of money for a widget, even if everyone on my team uses it. But $12,000 a year is dirt cheap for anything that solves a true problem. That solves me having to hire an engineer, or 3, to do something. That fixes something broken in my 500+ person org.
Your biggest deal so far is $100k, with Google?
Well … when Facebook comes in as a prospect … ask for $200k. With confidence.
You may have to build them an extra feature. Provide better onboarding. Improve customer success. Upgrade your sales team, or at least, add reps with more experience selling larger deals. Build a new integration. Who knows.
You may have to change a bunch of things. Or nothing.
But it’s a journey.
And if you have a true solution, that really makes an impact … you’ll probably get the 2x pricing. At least some of the time.
Once you do, and level up.
Then — Rinse. Wash. Repeat.