Is Price Pitching A 20% Loser?

Working with a technology sales team recently, they were bemoaning that a contract won today would shrink by a quarter by the time of renewal next year.

Yet in a world seemingly fixated on cheapness, they felt the value they provided gave both a merited premium and an offer of fundamental importance to the market.

Then a long-time industry veteran said this.

People will only move for price if it is way lower.

Possibly somewhere like 20% less.

The room fell silent. The statement sunk in. Heads began to nod. How many incumbents are you trying to unseat right now? Please check whether you are pitching mainly on price. Wherever you are, isn’t it time to make another plan?