So, you're ready to close the sale but, during the meeting, your potential client seems to be balking at the price. So, out of fear of losing the sale, you discount it...then add more services to sweeten the deal...then discount it again. Finally, they accept the deal and you sign a contract! Yay!! But is that really something to celebrate? You just added more work for less money. So where did it all go wrong, and how can you fix that?
Clients that question your pricing HOPE that you will cave but expect that you probably won’t. It’s not a rejection, it’s a bargaining move. Even if it’s not, it’s not worth your stress to sell yourself short.
So, let's talk about how to know when to bargain or when to stand fast on pricing.
Is your price reasonable? Meaning – is your price similar to others in your industry with your years of experience? If other people are having success selling at that price point, then so should you - maybe they’re getting it more than you because they are demanding it. Stand firm.
Do you lack confidence? If you do, it will show in your demeanor, wording, and tone of voice and you’ll lose. If you know you have a good product or service at a reasonable price, ACT LIKE IT! Quit finishing your statements with a question mark! (We think $3000 is a reasonable investment for this project?? *shrug*) Also, stop apologizing…you’re not Canadian, you’re an American. Again – ACT LIKE IT!
Can you explain the client’s ROI? The better you can explain this, the more likely people will accept your pricing.
So, when should you bargain?
If you know there are some things you could drop from the quote you’ve prepared, THEN you can negotiate and drop the price, but only drop the price if you drop a service.
Another bargain point is if you find out your client is an army vet or cancer survivor or teacher – whatever cause you choose to back, you can offer them a discount in light of their service to our country, community, or simply for their bravery.
You’re trying to sell some flawed (but still usable) product. Reduce price, for sure.
They want to buy in bulk. If you want to buy 15 videos from us, we will greatly reduce the price per video because we’re happy to have that much work from you, but we’ll state the reason for the discount clearly in the contract and the consequences for backing out early will be an increase in price for subsequent videos in the future. They don't get to keep the bulk discount for something that they're no longer going to be buying in bulk.
If your buyer flinches, looks flabbergasted by the price, or otherwise balks at it…keep silent, do NOT rush to “make it better”. Their outrage is usually a bluff. If not, they weren’t for you, but if you keep quiet for a few seconds you can answer calmly and rationally without backing down. Remind them why you’re pricier than some of the others (you have more experience, better this, more that…name your unique assets). Reiterate their ROI and stand your ground.
Look, I know how difficult it is to employ this kind of firm pricing....especially when you are starved for business. I've been there/done that. But if you cave in now, they'll expect it next time. Not only that, but if you cave in now it will be easier next time, and the time after that, and the time after that. It will become your new normal and you'll lose money while working harder. That's not the goal, obviously, so if you don't have natural confidence, just fake it til you make it. As with "caving in", if you project false confidence now, next time will be easier, and next time, until you have REAL confidence which will become your new normal.
Zig Ziglar said it best: "Things are the way they are because we are the way we are." BE CONFIDENT!
And don’t forget….however it is that you decide to run your Colorado small business, we are here to help! Colorado multimedia production is what we do! That means providing Colorado with professional video production, professional graphics work, website design and hosting, social media assistance and virtually any other print, online, or AV media that you can think of! Call or email us to see how we can help propel you forward!