You're Not Losing Deals on Price
"We lost because we were too expensive." It's probably the most common explanation I hear after a deal is lost.
by Steve Victor
Sometimes it's true.
Most of the time, it isn't.
Price is often the easiest explanation because it feels outside our control.
But when we look deeper into lost opportunities, the real reasons are usually very different.
Customers Buy Value, Not Discounts
Think about the last time you bought something important.
Did you automatically choose the cheapest option?
Probably not.
You weighed up the risks.
You considered the long-term value.
You wanted confidence that you were making the right decision.
Your customers are no different.
When they clearly understand the business value, price becomes only one part of the decision.
What Really Causes Deals to Be Lost?
In my experience, deals are far more likely to be lost because:
- The customer doesn't see enough value.
- The problem wasn't fully understood.
- The economic buyer wasn't engaged.
- The business case wasn't compelling.
- The sales team competed on features instead of outcomes.
- There was no urgency to act.
These issues have very little to do with price.
They have everything to do with the quality of the sales process.
Discounting Is Often a Symptom
When salespeople lack confidence in the value they've created, discounts become the easiest way to reduce customer resistance.
Unfortunately, this creates a dangerous habit.
Margins shrink.
Customers expect future discounts.
And the business trains the market to negotiate.
Great sales teams don't rely on discounting.
They build value.
Ask Better Questions
The next time someone says,
"We lost on price."
Ask:
"What value did the customer fail to see?"
That single question often changes the entire conversation.
Final Thought
Customers rarely buy the cheapest solution.
They buy the solution that gives them the greatest confidence.
If your team consistently loses on price, don't start by lowering your prices.
Start by increasing the value your customers experience throughout the sales process.
That's where sustainable growth begins.
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