As a business owner you've probably had the experience of a new client requesting your product or service, seeing the price, and telling you that your prices are to high. It can be a difficult and frustrating conversation to have, and it can be hard to know when to negotiate and when to walk away from potential new business. World renowned marketer and host of the The Futur podcast Chris Do gives the following tips for dealing with clients who want to want to do business with you, but are making an issue over the cost.
Help Them Realize Your Value
A simple technique is to go over everything that goes into creating the product or service. Often times clients only think of the end product, but do not consider the amount of man hours, material, and training that goes into its creation. At this point it may also be helpful to ask the client how much value they would place on not so much the product or service but the benefits that will come from your product.
So, if you are a dentist ask them what the value of having a beautiful smile is to them. If you are selling websites ask your clients how much more business they will get from having a beautiful, user friendly website. Whatever you sell, you bring value that extends beyond your product and you need to help your clients see that. In asking these questions we are also better able to gauge how serious they are about buying your product or service, or if they are simply just trying to find the cheapest possible option and don't care where they get it.
Nothing Is Set In Stone
If you think that they are serious about buying your product, but simply are limited on resources, then if possible it is time to negotiate. You can either flex your prices slightly to accommodate them, or you can customize your services slightly and communicate to them that they will not be getting the full package, or that they will need to put a bit of work in that typically your business would take care of. As long as your business still makes money, you don't compromise your quality, and the customer is happy this can be a solid option.
Put Your Foot Down
It is extremely hard to turn away business, but sometimes we need to realize that some clients are not worth the headaches especially if they are trying to do everything as cheaply as possible. As a business you cannot afford to spend major amounts of time on minor things. When this is the case Chis Do recommends to thank them for their interest, and say that you would be happy do business with them in the future at a price that works for everyone. Make sure you keep the door open as often it can take some time for the potential client to evaluate their options, and they can still come back.
There are always going to be tough conversations you have to have with your clients, and your prices will always be questioned. The important thing is to have confidence in your business, and know when you need to draw the line and when to be flexible as possible for your clients.