Sales Close-Rate Price Test
Raise prices experimentally and judge them by conversion economics
- Difficulty
- Moderate
- Time to result
- ~months to results
- Steps
- 4
- Confidence
- 96%
The Sales Close-Rate Price Test treats pricing as a measured sales experiment. First, record each comparable sales call, including the price offered and whether the prospect bought. Use a defined period to establish a baseline close rate. Then offer a materially higher price to a fresh set of similar prospects and compare the resulting conversion rate, revenue per call, expected workload, and delivery burden. Larunger's central point is that closing fewer packages can still create better economics when each sale is worth substantially more. The test also recognizes capacity: a founder can only handle a limited number of calls and clients before overload or burnout. The aim is not simply to maximize close rate, but to find a price that supports stronger revenue and sustainable delivery.
Origin
Victor Larunger recommended tracking sales calls and comparing close rates after a price increase. Extracted from The Foundr Podcast.
Core principles
- 01Pricing decisions should use recorded sales outcomes
- 02Close rate matters alongside revenue per sale
- 03A lower conversion rate can still produce better economics
- 04Capacity and delivery workload constrain viable pricing
How to run it
- 1
Create a sales-call log
Record every qualified call for the same offer, including the quoted price and the result. Keep the offer and buyer profile comparable enough for the data to be useful.
Pro tip Also note expected delivery hours so price is not judged on revenue alone.
Watch out Mixing unrelated packages makes the close-rate comparison misleading.
- 2
Establish the baseline
Calculate the percentage of calls that closed at the current price over a defined period. Record total contracted revenue and expected work as well.
Pro tip Use a fixed window or sample size before changing the price.
Watch out A handful of calls can produce a volatile rate, so interpret a small sample cautiously.
- 3
Test a higher price
Quote a materially higher price to a new group of comparable prospects. Larunger suggests doubling the price as an illustrative test, not as a universal requirement.
Pro tip Keep the underlying scope stable during the test where possible.
Watch out Do not misrepresent scope or manufacture urgency to protect conversion.
- 4
Compare the economics
Compare close rate, revenue per call, delivery demand, and client load with the baseline. A lower close rate may be acceptable if the higher price creates better overall economics.
Pro tip Evaluate profit and capacity, not just top-line revenue.
Watch out Do not assume a higher price is better if delivery costs or acquisition effort rise disproportionately.
In the wild
Larunger proposes logging sales calls for two or three months, calculating the current close rate, and then testing a doubled price. If the conversion ratio remains strong enough, the higher price may produce more revenue without requiring the seller to close as many clients.
→ The pricing decision is based on observed conversion economics rather than guesswork.
Larunger said a lesson from Daniel DiPiazza led him to resell a higher package to an existing client. He reported that his largest retainer increased from $1,600 to $5,000 with that same client.
→ An existing relationship supported a substantially larger engagement.
Common mistakes
Optimizing only for close rate
A high close rate at a weak price can create more work while producing worse revenue and capacity outcomes.
Ignoring delivery capacity
More clients are not automatically better if the workload overloads the founder or team.
Drawing conclusions from mixed offers
Price results cannot be compared cleanly when scope, audience, or sales process changes at the same time.
Is it for you?
Best for
It is best for sellers with a repeatable offer and enough comparable sales calls to observe conversion changes.
Not ideal for
It is not ideal when every proposal has a different scope or the sales sample is too small to compare meaningfully.
From the transcript
“keep track of all of your sales numbers”
“why don't you now try doubling your price and do that same test”
“you can only do so many sales calls”
From the episode
177: How Shannon Willoughby Turned Her Passion Into a $30K/Month Business (Start & Scale Student Spotlight – Part 2)