How to Justify Price

TL;DR

Learn how to justify large investments in business, whether it's $80,000 or $5 million, by building value and focusing on the positive outcomes.

Transcript

[Applause] [Applause] give me the situation that you would to where let's say it's $80,000 a month for the product and you expand it to 1.2 million how could you and your company make a decision to spend 1.2 million dollars then this is a three year contract you're gonna spend 3.6 million dollars on it you know after implementation execution data t... Read More

Key Insights

• 🍉 Justifying large investments requires focusing on the potential returns and long-term benefits.
• 🏛️ Building value and highlighting positive outcomes are crucial in justifying any investment.
• ❓ Addressing objections and concerns is necessary to convince customers of the value of the investment.
• 💼 In certain cases, the prestige, status, and potential appreciation of an investment can also justify its cost.
• 😚 Understanding the customer's perspective and finding ways to make sense of the investment is essential in closing deals.
• 🌥️ By considering the potential gains and focusing on the positive aspects, even large investments can be justified.
• ❓ Overcoming objections and illustrating the value of the investment through data and execution strategies is crucial.

Questions & Answers

Q: How can a company justify spending $1.2 million on a product?

The company can justify the investment by focusing on the potential returns, implementation execution data, and long-term benefits. By building value and emphasizing the positive impact it can have, the investment becomes justifiable.

Q: How do you make sense of purchasing a $300,000 automobile?

Purchasing a $300,000 automobile can be justified by considering factors such as prestige, performance, comfort, and the potential impact on one's image and status. It's important to highlight these aspects to make sense of the purchase.

Q: How can a person afford to pay $26 million for a house?

Affording a $26 million house can be justified by factors such as wealth, prestige, location, and potential appreciation in value. By highlighting these aspects and considering the long-term benefits, the purchase becomes reasonable.

Q: What if a customer says they can't justify a $5 million investment?

In such a situation, it's important to build value and address the customer's concerns. Show them the potential positive outcomes, returns, and how the investment can significantly impact their business growth. Focus on overcoming objections and illustrating the value it brings.

Summary & Key Takeaways

• The speaker discusses the process of justifying large investments in business.

• He emphasizes the importance of asking customers how they can justify the purchase and making sense of the value it brings.

• The speaker advises building value, addressing negatives, and focusing on positive potential outcomes to close the deal.