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When Your Prospect Has Issues with Your Price
In this video we talk about what to do when the prospect you are pitching to has issues with your price.
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Transcription:
Bryce Whitty here from Technibble.com and in this video I am going to share with you what to do when the prospect you are pitching to has issues with your price.
So, you generally want to target businesses that are large enough to be able to afford your services. But sometimes its kid of hard to know what their budget is like until you get there.
If they like what you are offering but price is a problem, I’d first look at whether you sufficiently sold what you are offering. You may need to go back and clarify the benefits of each part and how they will be much better off.
If they understand the benefits but budget is still a problem, you should never discount your rates because it devalues what you do.
Instead, if they want to move the goal posts like price, you can move what you offer them to match. For example, keep all the automatable tasks the same but change the labour heavy parts to like a paid-per-ticket basis.
It’s no extra work for you and you still get to bring them on board as a customer.
That said, if their budget is unworkable and you think they will nickel-and-dime you the whole way, then its best to focus your efforts on clients with bigger budgets.
The point is, it is possible to bring on low budget clients then make them workable without lowering your rates or increasing the amount of work you do.
I hope that helps.
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I’ve found that accepting a client just because we don’t like to “lose” any business ends up being a losing proposition.
If you take on a low-budget client, you’ll often find that they will demand and expect more service from you than higher-budget clients. If you’re taking on a client without making enough money, you’ll get frustrated, feel taken advantage of, and you won’t give them the level of service they demand. In the end, you’ll probably lose them anyway and take a hit to your reputation as well.
In the past, I have used the tactic of replying to requests to lower my price by saying, “OK, let’s look at what we need to remove to get to that price point.” It’s pretty effective!
Also, make sure you have a late fee policy in their contract to make sure you don’t become their bank!