Wait for it! It’s coming! The day when a potential client will respond to your proposal by telling you that you’re too expensive. They love everything about your services except the price.
As an entrepreneur there’s no way for you to avoid this experience. So how can you prepare yourself? What’s the best way to respond to a prospect without compromising your value or burning bridges?
- Don’t be offended
It’s easy to be offended when a potential client ignores the quality and depth of services you are offering them and focuses only on the price. Especially when you spent months developing prices that you know are fair and are truly representative of the value you give clients. Don’t let your emotions get the best of you because you could miss out on a great opportunity to help them understand your services and prices better and possibly win them over.
- Ask for context
Offhand, an objection to a price can mean anything. Ask them to clarify what they mean. What or who are they comparing you to? Make sure they are comparing apples to apples. Are your prices too high or is their budget too low? Ask questions to get to the heart of what they really mean.
- Stand your ground
Just because you receive some pushback about your prices is no reason for you to fold and start compromising. Unless they can provide you with a valid reason as to why you should lower your price, stand your ground. While it may seem like a small thing to do to gain a client, oftentimes you are sending them a signal that with enough pressure they can get you to compromise. It also tells them you aren’t confident in the value of your service.
- Offer them a reduced solution that fits their budget
More often than not, when a prospect says your prices are too high, what they really mean is “my limited budget can’t support this”. This is the time to ask them what they think is a fair price for the service. If you decide that working with the client is mutually beneficial, offer them a reduced solution that is supported by their budget. That means you select specific items from your service offering that equals the amount they are able to pay.
- Know when it’s time to move on
Sometimes a client gets a certain price stuck in their head and no matter what you say, they can’t let go of it. Even after you have clearly conveyed the value of your services and why your prices are indeed fair. That’s when it’s time to move on. Thank them for considering your services and wish them well on their search. You may want to suggest other resources that will help them solve their problem and fit within their budget. This will help you end the conversation on a positive note and keep the idea open of possibly working together in the future.
While dealing with client objections to your prices can be frustrating, it can also be a valuable teaching tool. Use the experience to reinforce your confidence in the value of your services and glean customer insights that you can incorporate into your marketing efforts. No matter how a client interaction ends, every situation can be used to your advantage.