Introduction:

Price-Build-Up refers to the strategic process of discussing the price of products or services in sales interactions in a way that emphasizes their value, benefits, and affordability, and addresses any potential concerns or objections from the customer. It involves breaking down the price into its components and justifying each element to demonstrate its worth and relevance to the customer's needs and preferences. In this guide, we'll explore the concept of Price-Build-Up, its significance in sales conversations, and best practices for effectively incorporating it into the sales process.

Definition:

Price-Build-Up is a sales technique or approach used to present the price of products or services in a structured and compelling manner, focusing on highlighting their value, benefits, and affordability, and addressing any perceived barriers or objections related to cost. It involves breaking down the total price into its individual components, such as features, benefits, and added value, and justifying each element to demonstrate its importance and relevance to the customer's needs, preferences, and budget constraints.

Key Components of Price-Build-Up:

• Value Proposition: Price-Build-Up begins by establishing the value proposition of the product or service, highlighting its unique features, benefits, and advantages over alternatives, and emphasizing how it addresses the customer's needs, solves their problems, or fulfills their desires better than competing offerings.
• Cost Justification: Price-Build-Up involves justifying the cost of the product or service by breaking down the price into its individual components and explaining the value and benefits of each element. This may include discussing the quality, functionality, performance, durability, and other attributes that contribute to the overall value proposition and justify the price point to the customer.
• Affordability: Price-Build-Up emphasizes the affordability of the product or service by highlighting its long-term benefits and cost savings, such as increased productivity, efficiency, or ROI, and demonstrating how the investment outweighs the initial cost over time. This helps alleviate any concerns or objections related to price and reinforces the value proposition of the offering.

Best Practices for Price-Build-Up:

• Understand Customer Needs: Before discussing price, take the time to understand the customer's needs, preferences, and budget constraints, and tailor the Price-Build-Up approach accordingly. Focus on highlighting the features and benefits of the product or service that are most relevant and valuable to the customer, and address any concerns or objections they may have related to cost or affordability.
• Focus on Value: Emphasize the value proposition of the product or service throughout the Price-Build-Up process, focusing on the unique advantages, benefits, and outcomes it offers to the customer. Highlight how the offering addresses their specific pain points, solves their problems, or helps them achieve their goals, and demonstrate why it is worth the investment compared to competing alternatives.
• Provide Options: Offer customers flexibility and choice by presenting different pricing options or packages that cater to their needs and budget constraints. This allows customers to select the option that best fits their requirements and financial capabilities, while still providing them with the value and benefits they seek from the product or service.

Conclusion:

Price-Build-Up is a strategic approach to discussing price in sales interactions, focusing on highlighting the value, benefits, and affordability of products or services, and addressing any concerns or objections related to cost. By breaking down the price into its components and justifying each element based on the customer's needs and preferences, sales professionals can effectively communicate the value proposition of the offering and demonstrate why it is worth the investment, ultimately driving engagement, conversion, and revenue in the sales process.

‍