Price isn’t as impactful as product and sales experience
Losing deals isn’t only about price, even though it’s the convenient scapegoat. It’s tempting to blame numbers on a screen, but when analyzing over 3,400 buyer interviews at Klue Labs, the truth becomes undeniable. Price lands a distant third in reasons deals fall apart, trailing behind product issues and sales experience. That’s a massive gap in perception versus reality.
Think about this: if a sales rep can’t differentiate their product or struggles to connect with the buyer’s needs, what chance do they have? Buyers aren’t comparing decimals in pricing; they’re weighing the value, usability, and relevance of your offering. They’re scrutinizing the salesperson’s ability to guide them through the process with clarity and insight.
The reality is, deals fail more often because the product doesn’t deliver what’s needed or because the sales approach doesn’t inspire confidence. When salespeople default to price as the excuse, they miss the opportunity to learn from deeper flaws in their process. Fixing these blind spots—whether it’s product alignment or sharpening sales execution—brings far more wins than simply racing to the bottom of the price war.
“If pricing really is the obstacle, it’s often a smokescreen for larger concerns. The focus should shift from price tags to solving pain points and delivering clear, undeniable value. That’s where the real leverage lies.”
Enterprise and SMB deals are less price-sensitive than expected
It might seem counterintuitive, but enterprise deals aren’t as price-sensitive as you’d think. These organizations are managing large budgets and working with significant ACVs, which means the decision-making process focuses heavily on product fit and long-term value.
Price isn’t dismissed outright, but it’s rarely the make-or-break factor. The numbers support this and enterprise deals are far more likely to hinge on product performance than a slightly cheaper offer.
This trend isn’t stopping with big companies. Even in the SMB market, where economic pressures are more visible, price isn’t driving decisions as much as expected. It’s easy to imagine a small business defaulting to the lowest bid, but they’re often just as focused on finding the best overall solution. If your product solves a real problem and can scale with their growth, SMB buyers are willing to invest.
The broader takeaway is that flexibility in budget isn’t determined solely by how much money is available, but also by how well the solution aligns with their priorities. When price becomes the focal point, it’s often masking a deeper uncertainty about value.
Enterprise buyers and SMB owners alike are looking for confidence that they’re making the right choice, not necessarily the cheapest one. The better your team is at presenting that assurance, the less price will matter.
Budget constraints are a minor factor in price-related losses
Let’s dismantle a myth. Budget constraints aren’t killing your deals. While it’s easy to check “budget issues” in a CRM drop-down, the data says otherwise. Across thousands of buyer interviews, only 10% of price-related losses were actually attributed to budget constraints. That’s an incredibly small slice of the pie.
Why is that? By the time a deal reaches the late stages, buyers are already qualified. They’ve crunched their own numbers and determined they can afford the investment if the solution justifies the cost. If a deal falls apart at this stage, it’s rarely because their budget suddenly evaporated. It’s because something else—a lack of perceived value, poor communication, or an unclear business case—became the deal’s Achilles’ heel.
This stat is your reminder that budget constraints are often a superficial explanation. Dig deeper, and you’ll usually find more actionable insights. When your team hears “too expensive,” what’s often being said is “I don’t see the ROI.” If sales teams can shift their mindset and conversation toward demonstrating value, they’ll turn “too expensive” into “worth it.”
Address pricing objections and dig into underlying issues
When a buyer says, “It’s too expensive,” that’s your cue to start investigating, not conceding. Pricing objections are almost never about the sticker price. They’re a reflection of unspoken concerns. Smart salespeople recognize this as an opportunity to dig deeper.
Start by acknowledging the objection, then immediately shift to exploration. Ask something like, “Aside from price, what other concerns do you have about our solution?” or “If pricing were equal, which solution would you choose and why?” These questions open the door to discovering what’s really driving hesitation.
The focus here shouldn’t be on defending the cost, and should be on finding gaps in trust, clarity, or alignment. Buyers often use price as a safety net objection because it’s easy to articulate. But if you guide the conversation skillfully, you’ll often find the root cause is something you can address—whether it’s confusion about features, skepticism about ROI, or even misalignment with their internal goals.
“The next time a buyer brings up price, treat it as a signal, not a verdict. The real objection is almost always hiding in plain sight, waiting to be discovered.”
Build a quantifiable business case can offset pricing concerns
When pricing objections come up, it’s usually because the buyer doesn’t see a clear return on investment. The good news? You can solve that. Buyers need to know exactly how your solution impacts their bottom line, so a strong, numbers-driven business case is key.
Start by identifying their pain points. Are they losing revenue because of inefficiencies? Bleeding resources on manual processes? These challenges are your foundation. Quantify the current cost of doing nothing. For example, if they’re losing $500,000 annually in operational inefficiencies, make that figure central to your argument.
Next, build the bridge to your solution. Show how it addresses those losses in specific, measurable ways. For instance, “By automating this process, we estimate you’ll recover 30% of your revenue leakage, saving you $150,000 annually.” If you can anchor the benefits of your solution to dollars and cents, you shift the conversation from price to value.
But don’t stop there. Involve the stakeholders who will benefit most, and tailor the metrics to their priorities. A CFO wants cost savings, while a COO might prioritize efficiency gains. The more personalized your business case, the harder it is for them to say no.
The data supports this approach, showing that ROI concerns are tied to 22% of pricing-related losses, according to the same Klue Labs survey. A clear, quantifiable business case eliminates doubt and builds confidence. Make it easy for buyers to connect your solution to their financial success, and pricing objections lose their sting.
Use clear and simplified pricing models to reduce friction
Complex pricing confuses buyers, and confusion kills deals. Over 40% of price-related losses stem from unclear or overly complicated pricing structures. That’s a huge chunk of revenue slipping through the cracks because buyers can’t make sense of what they’re paying for.
Simplify things. Start with context. Give buyers a range—“Most companies like yours spend between $X and $Y”—to set expectations without overwhelming them. Next, validate their needs by asking pointed questions about how they’ll use your product. Are they prioritizing scalability? Do they need premium features? These insights help you refine your proposal.
From there, offer tiered pricing options tailored to their needs. Highlight volume-based discounts, and position them as pre-discounted. This strategy reduces friction and frames your pricing as a thoughtful match for their requirements.
And when the conversation gets tricky, circle back to business value. If your pricing feels high, remind them of the $500,000 they’re losing annually and show how your solution cuts that in half. Pricing should never be a standalone conversation, but rather a part of the bigger story you’re telling about ROI.
“Clarity is everything. Buyers need to see your pricing as straightforward, predictable, and tied directly to the results they care about. Remove the mental gymnastics, and you’ll see fewer deals fall apart.”
Final thoughts
Are you selling a price tag or a solution that truly helps your buyers? If your product disappeared tomorrow, would your customers feel the loss? Stop obsessing over being the cheapest option and start building something that buyers can’t afford to live without. The value you deliver is your leverage, so make it undeniable. Are you ready to recalibrate your strategy and own your market, or are you content to let pricing be your excuse for losing?
