Pricing Power Is a Strategy, Not a Negotiation Tactic
Most mid-market companies undercharge because they've never done the positioning work that justifies a premium. It's not a sales problem. It's a strategy problem.
Pricing power is one of the most misunderstood concepts in the mid-market. Most CEOs treat it as a sales execution issue: teach reps to handle price objections better, give them better ROI calculators. But pricing power is not built in the sales conversation. It is built long before the rep ever picks up the phone.
Why Mid-Market Companies Undercharge
There are two root causes. First, positioning ambiguity: the company has not made clear which segment they are the best choice for and why. When positioning is vague, the buyer's frame of reference defaults to price comparison. Second, outcome disconnect: the company is selling features and capabilities when the buyer is buying business outcomes.
- Positioning clarity: Can every rep articulate in one sentence which customer segment you serve best and why?
- Outcome language: Does your sales narrative lead with measurable outcomes, or with product capabilities?
- Competitive frame: Do you control the comparison set, or do buyers define it by evaluating you against competitors you don't want to compete against?
A thought before you continue
If what you are reading describes a problem your company is actively sitting on, a direct conversation is where it starts.
See if we're a fitIf your reps are regularly discounting to close, the problem is not the reps. The problem is that your company hasn't done the strategic work to earn the right to the price you're asking for.
A Practical Starting Point
Find your last five deals that closed at full price with no negotiation. Understand what those customers have in common. That cluster is your pricing power zone. The customers who pushed hardest on price belong to a different segment. Build your go-to-market strategy around the first group, not the second.
Work with Jeff
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Jeff Bounds
Revenue growth advisor to growth-stage founders and CEOs.
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