Price Strategies: Don’t Low Ball Yourself
Sticking to your guns when it comes to pricing can be a touchy subject for many a small business owner. We *all* want to be able to land every client that we possibly can. But — this mindset can easily be the downfall of your business.
So how do you get over the objections when someone says “That is w-aaaaaa-y to expensive!”
The fact is, sometimes you just can’t. But that’s OK. You don’t need to close every single sale in order to stay afloat and grow your business.
In fact there are times that it would be detrimental to take the job by low-balling. You might end up stuck with a client who underpays, and you one day come to your senses and realize that you are not only not making a profit, but you are losing money by servicing the client.
So in order to win the client who feels outright upset by your quote you need to sell your professionalism. You have to be able to communicate effectively your value proposition. You need to get to the bottom of why they think it is too expensive.
I have always found it beneficial to go at it from a number of different ways, all dependant upon just how the tone of voice is on the other end of the phone. For some I end up simply asking for an email and sending them the quote so that they can think it over.
“Let me talk it over with my husband (or wife, partner, roommate).”
This one is almost always a quick wrap up followed by an email. The same can be said for folks who mention that they are just getting quotes. In both these cases I like to end the conversation with a very confident “we look forward to hearing back from you once you have made your decision.”
I never, ever turn into a pushy salesperson. No one has ever liked those people. I do however stand my ground in regards to pricing.
We just got another one of these calls this morning. I could hear it as I was getting some coffee. It was the “Can you give me a definite price?” “Why is the quote a range?” No matter how many times I explain this to people the answer will always remain the same, and some people will just not understand.
Here is how I answer it: We must give you a price range because we never know what we are walking into. We want to be honest about the possibility that it could take up to XX hours costing XY dollars. However, if your home is in excellent condition it could also take less time than what I am quoting, in which case you are billed for only the amount of time that we are there.
In the event that the client on the other end of the phone has a really, really, good reason to stick to a certain budget, and dependant on what our schedule looks like I will SOMETIMES offer the following option….often with great hesitation.
We can however set a limit on the amount of time that the team is at your home. We could put a cap on the service at the 2 hour mark. However, with this option we do not offer our guarantee on services. We also require that together we set a list of priorities. Such as all bathrooms, and kitchen often times these areas will take a full 2 hours to complete in a home of your size. Should we have additional time available we can also tackle….
You get the idea…
Being clear and concise and listening the client about their needs can really ease any miscommunications. Often times at this point the client will appreciate your offer, and say let’s do the whole house anyway.