# Sales Conversion

Sales conversion is where nurtured leads become paying customers. This is not about manipulation or pressure — it is about removing friction, overcoming legitimate concerns, building trust through proof, and making it as easy as possible for the right people to say yes.

## Pricing Psychology

Price is not just a number — it is a signal. How you price, frame, and present your offer dramatically affects conversion rates. Most businesses underprice out of fear, sending the wrong signal to the market.

### The Price-Value Perception Matrix

| Price Level | Market Perception | Who It Attracts |
|-------------|------------------|-----------------|
| Cheapest in market | Low quality, desperate, unreliable | Price-sensitive buyers who are expensive to serve and quick to leave |
| Middle of market | Average, interchangeable, "safe" choice | Comparison shoppers who focus on features |
| Premium | Expert, specialized, high confidence | Value-conscious buyers who want the best outcome, not the lowest price |
| Ultra-premium | Exclusive, prestige, transformation | Status-conscious buyers; those for whom the problem is extremely painful or valuable |

### Pricing Strategies

| Strategy | How It Works | Best For | Example |
|----------|-------------|----------|---------|
| Value-based pricing | Price based on the value delivered, not your costs | Consulting, SaaS, services | "This saves you $50K/year, investment is $10K" |
| Tiered pricing | Good-Better-Best options, anchor high | SaaS, productized services | Starter $49, Pro $149, Enterprise $499 |
| Bundling | Combine multiple items at a perceived discount | E-commerce, service packages | "The Complete Kit: $397 (individually $590)" |
| Price anchoring | Show a higher reference price first | Any business with premium and standard options | "Enterprise is $999/mo. Most teams choose Pro at $299/mo" |
| Decoy pricing | Add an option that makes the target option look best | Subscriptions, product tiers | Monthly $29, Annual $199 (monthly looks expensive, annual looks like a deal) |
| Pay-per-result | Charge based on outcomes, not inputs | Performance marketing, sales agencies | "$0 upfront + 15% of incremental revenue" |

### The Price Conversation

When a prospect asks "how much?" before understanding the value, deflect with a question:

**"Before I can give you an accurate price, I need to understand your situation. Can I ask a few questions?"**

This reframes the conversation from price to value and gives you the information to present the price in context. Never lead with price — lead with the problem, the impact, and the solution.

### Raising Prices

Raising prices is the single highest-leverage activity in most businesses. A 10% price increase goes straight to the bottom line. Here is when and how to do it:

| Signal | What It Means | Action |
|--------|--------------|--------|
| Close rate above 80% | You are too cheap; nearly everyone says yes | Raise prices 15-25% |
| Close rate 60-80% | Pricing is competitive but may have room | Test a 10% increase |
| Close rate 40-60% | Pricing is in a healthy range | Optimize sales process before adjusting price |
| Close rate below 40% | Possible pricing issue, but also check targeting and messaging | Audit the full funnel before adjusting price |
| Customers never push back on price | You are leaving money on the table | Raise prices until you start getting some pushback |
| You are busier than you can handle | Demand exceeds supply | Raise prices immediately |

## Guarantees and Risk Reversal

Every purchase involves risk. The buyer risks their money, time, and reputation. Risk reversal shifts that risk from the buyer to the seller, making the purchase decision easier.

### Types of Guarantees

| Guarantee Type | How It Works | Strength |
|---------------|-------------|----------|
| Money-back guarantee | Full refund within a time period | Standard (expected in many industries) |
| Conditional guarantee | Refund if specific conditions are met | Stronger — tied to commitment |
| Better-than-money-back | Refund plus additional compensation | Very strong signal of confidence |
| Performance guarantee | You guarantee a specific measurable result | Strongest — you put skin in the game |
| "Ride along" guarantee | You guarantee the process/experience, not just the outcome | Good for services where outcomes vary |

### Guarantee Examples

| Business | Guarantee | Why It Works |
|----------|----------|-------------|
| SaaS | "14-day free trial. No credit card required. Cancel anytime." | Zero risk to try |
| Consultant | "If our recommendations do not produce a measurable ROI within 90 days, we will refund our fee and work for free until they do." | Performance + extra commitment |
| E-commerce | "If you do not love it, return it within 60 days for a full refund. We will even pay return shipping." | Removes every friction point |
| Local service | "If you are not 100% satisfied, we will come back and redo the work at no charge." | Confidence signal |
| Course/training | "Complete the course and implement the framework. If you do not see results in 90 days, we will refund 100% and give you a free 1-on-1 coaching session." | Better-than-money-back |

### The Guarantee Paradox

Most businesses resist strong guarantees because they fear getting taken advantage of. In reality, strong guarantees typically increase revenue more than they increase refunds. The data consistently shows:

- Refund rates rarely increase more than 1-3% with stronger guarantees
- Conversion rates often increase 20-50% or more
- Net revenue almost always increases significantly

## Overcoming Common Objections

Every market has predictable objections. Address them proactively in your sales materials — do not wait for the prospect to raise them.

### The 5 Universal Objections

| Objection | What They Mean | How to Address |
|-----------|---------------|---------------|
| "It is too expensive" | They do not see the value relative to the price | Reframe as investment vs. cost; compare to cost of inaction; break into per-day/per-use cost |
| "I need to think about it" | They are not convinced or have an unspoken concern | Ask "What specifically would you like to think about?" to surface the real objection |
| "I need to talk to [someone]" | Either a legitimate decision process or a polite rejection | Offer to include the other decision-maker; provide materials they can share |
| "I am not sure it will work for me" | Lack of proof for their specific situation | Share case studies from similar businesses; offer a trial, pilot, or guarantee |
| "The timing is not right" | Competing priorities or no urgency | Quantify the cost of delay; identify if there is a trigger event; offer a "lock in now, start later" option |

### Objection Handling Framework: Feel-Felt-Found

A classic framework for handling objections empathetically:

1. **Feel:** "I completely understand how you feel about [objection]."
2. **Felt:** "Many of our best customers felt the same way before they started."
3. **Found:** "What they found was [how the concern was resolved and what result they achieved]."

Example: "I completely understand your concern about the investment. Several of our clients felt the same way — $5,000 for a marketing audit seemed steep. What they found was that the audit identified $40,000 in wasted ad spend in the first month, so it paid for itself eight times over."

## Discovery and Sales Call Structure

A structured sales conversation increases close rates by keeping the conversation focused and moving toward a decision.

### The 5-Step Discovery Call Framework

| Step | Duration | Purpose | Key Questions/Actions |
|------|----------|---------|----------------------|
| 1. Rapport | 2-3 min | Build connection, set the tone | Small talk, acknowledge them, thank them for their time |
| 2. Set agenda | 1-2 min | Establish expectations and permission | "Here is how I suggest we use our time. I will ask some questions to understand your situation, share how we might help, and then we can decide together if it makes sense to move forward. Sound good?" |
| 3. Discovery | 10-15 min | Understand their situation, pain, and desired outcome | "What is the biggest challenge you are facing with [X]?" "What have you tried?" "What would success look like?" "What is this costing you (time, money, stress)?" |
| 4. Present | 5-10 min | Show how your solution addresses their specific situation | Mirror their language, connect your solution to their stated pain and goals, share relevant case studies |
| 5. Close | 3-5 min | Guide to a decision | "Based on what you have shared, I think [solution/tier] is the best fit. Here is what the next step looks like. Shall we get started?" |

### Questions That Unlock Sales

| Question Type | Example | Purpose |
|--------------|---------|---------|
| Pain | "What is the biggest frustration with your current situation?" | Surface the emotional driver |
| Impact | "What is this problem costing you per month/year?" | Quantify the pain |
| Previous attempts | "What have you tried to solve this?" | Understand what has failed and why |
| Dream outcome | "If we could wave a magic wand, what would the ideal outcome look like?" | Define success criteria |
| Timeline | "When do you need this resolved by?" | Establish urgency |
| Decision process | "Who else would be involved in making this decision?" | Map the buying process |
| Budget | "Do you have a budget in mind for solving this?" | Qualify financial fit |
| Commitment | "If I can show you a solution that [achieves their stated outcome], would you be ready to move forward?" | Test readiness |

## Closing Techniques

Closing is not a trick — it is a natural conclusion to a well-run sales process. If you have done the discovery properly and presented a relevant solution, the close should feel like the logical next step.

### Effective Closes

| Close | How It Works | When to Use |
|-------|-------------|-------------|
| Assumptive | "Great, let me get you set up. Should we start with the Pro plan?" | When the prospect has shown strong buying signals throughout |
| Alternative choice | "Would you prefer the monthly or annual plan?" | When you want to shift from "if" to "which" |
| Summary | "So to recap, you will get [list of benefits]. The investment is [price]. Shall we get started?" | When the prospect needs to see the full picture |
| Trial close | "How does that sound so far?" (used throughout the conversation) | To check temperature and surface objections early |
| Next step | "The next step is [simple action]. I will send you [link/form/contract] right after this call." | When you want to make the buying process feel easy |

### What to Do After the Close

| Action | Timing | Purpose |
|--------|--------|---------|
| Send confirmation email | Within 1 hour | Reinforce the decision, reduce buyer's remorse |
| Provide clear onboarding steps | Within 24 hours | Build excitement, prevent cold feet |
| Make a welcome call/video | Within 48 hours | Personal touch, answer questions, set expectations |
| Begin delivering value | Within 1 week | Fast time-to-value reduces churn and builds confidence |

## Proposal Templates

For service businesses and B2B sales, the proposal is often the final document before a buying decision. It should sell, not just inform.

### Proposal Structure

| Section | Purpose | Content |
|---------|---------|---------|
| 1. Executive summary | Show you understand their situation | Restate their problem, goals, and what success looks like — in their words |
| 2. Proposed solution | Explain what you will do and why it will work | Your approach, methodology, and how it addresses their specific situation |
| 3. Deliverables and timeline | Concrete list of what they get and when | Itemized deliverables with dates or milestones |
| 4. Social proof | Build confidence | 2-3 relevant case studies, testimonials, or results |
| 5. Investment | Frame the price in context | Price presented after value is established; multiple options if using tiered pricing |
| 6. Guarantee/Risk reversal | Remove remaining hesitation | Your guarantee and what happens if they are not satisfied |
| 7. Next steps | Make it easy to say yes | "To move forward, simply [sign here / reply to this email / click this link]" |

### Proposal Best Practices

- **Send within 24 hours** of the sales conversation while the discussion is fresh
- **Personalize heavily** — never send a template that reads like a template
- **Include three options** (Good/Better/Best) to leverage anchoring and give them a choice of "which" rather than "whether"
- **Keep it short** — 3-5 pages maximum for most engagements
- **Follow up** — If no response in 48 hours, follow up. Do not assume silence means no.

## Exercises

### Exercise 1: Pricing Audit

Review your current pricing using the Price-Value Perception Matrix. Where does your price sit in the market? What signal is it sending? Calculate what a 10%, 20%, and 30% price increase would mean for your annual revenue.

### Exercise 2: Guarantee Design

Design a guarantee for your product or service that is stronger than anything your competitors offer. Write the exact language. Calculate the worst-case cost of honoring it. Compare that cost to the potential revenue increase.

### Exercise 3: Objection Bank

List the top five objections you hear from prospects. For each, write a response using the Feel-Felt-Found framework. Roleplay each response until it feels natural.

### Exercise 4: Discovery Call Script

Write your complete discovery call script using the 5-Step Framework. Include your specific questions for each step. Practice it on three calls this week and note what works and what needs adjustment.

### Exercise 5: Proposal Overhaul

Take your current proposal template and rebuild it using the Proposal Structure framework. Include actual case studies, a clear guarantee, and three pricing options. Send the new format on your next three proposals and track the close rate.

## Checklist: Sales Conversion Complete

- [ ] Pricing strategy is defined and positioned intentionally (not just "what competitors charge minus 10%")
- [ ] At least one strong guarantee is in place and prominently featured
- [ ] Top 5 objections are documented with prepared responses
- [ ] Sales call structure follows a defined framework
- [ ] Discovery questions are documented and practiced
- [ ] Closing technique matches the sales context
- [ ] Post-close onboarding process is defined and begins within 24 hours
- [ ] Proposal template follows the sell-not-just-inform structure
- [ ] Close rate is being tracked per salesperson, channel, and offer
- [ ] Pricing is reviewed quarterly and adjusted based on close rate and demand signals
