Enterprise Pricing Psychology

A discussion about enterprise pricing psychology reveals that sellers often underestimate what large companies are willing to pay for services, particularly in corporate training and education.

• Enterprise Pricing Reality:

  • Companies with large employee bases (like 50,000 employees) readily accept high pricing
  • Sellers frequently underprice their services, thinking numbers are "crazy high"
  • Buyers often don't blink at prices sellers consider extreme

• Real Examples:

  • Growth mindset trainer working with major corporations:
    • Gets $100,000 monthly retainers from companies like Coca-Cola
    • Sports teams keep him on retainer
    • Companies want annual recurring arrangements

• Corporate Buying Behavior:

  • Large companies seek ways to package training for all employees
  • They value ongoing relationships over one-time engagements
  • They prefer company-wide solutions that can be standardized

• Pricing Strategy:

  • Sellers often "just name a number" without deep pricing analysis
  • When prices are accepted easily, it signals they could have charged more
  • Companies are willing to pay premium for customization (like adding company name to materials)

• Key Learning:

  • Don't self-limit on pricing for enterprise clients
  • What seems expensive to an individual might be reasonable for a corporation
  • Enterprise deals can be more profitable than expected