Today we’re talking about the wince test, which is a really helpful pricing tactic in B2B sales.
1. Do not worry about setting a high price. Nobody will be so offended by your price that they won’t speak to you again. Most of the time, they actually reveal their budget.
2. Confidently set a high initial price. If the customer pushes back — that is, they “wince” at your price — be ready to negotiate down to the maximum price they’re willing to accept.
3. Once you’ve done this with 5–10 customers, you’ll notice them clustering around a price, and that’s likely to be a fair estimate of the right price for your product. Don’t be surprised if it’s much higher than you expected.
Best of luck out there.
Sterling Road invests in idea stage and pre-seed B2B startups based in the US, Canada and UK.
