<p>As a business owner, working with bargain hunting prospects is part of the territory. Plus, with the economy being as it is, more people than ever are looking for a deal.</p> <p><strong>How do you charge what you're worth without offending a potential client?</strong></p> <p>Handling bargain shoppers requires a combination of tact and firm boundaries. After all, this is a delicate situation: if you come off as defensive or inflexible you risk losing a sale or a later referral. If you give in and offer a lower price to nab the prospect, you not only risk losing money on the deal, but you also give up a bit of your professional integrity by stumbling into an ethical grey area (what about all those clients who never got a price reduction?).</p> <p>Because I've run across this situation more often than I'd like to admit, I've developed some standard lines to deliver when my pricing is challenged. Hopefully, these responses can help you, too.</p> <p><strong>"Your hourly rate is too high."</strong></p> <p>In the beginning of my freelance career, a prospect asked for my hourly rate. Being new to things and lacking a bit of confidence, I responded hastily and a bit defensively. The potential client asked if I just made the number up. I was embarrassed, to say the least.</p> <p>Even if your hourly rate is $25, someone will challenge it. The key to responding convincingly, in this case, is to be confident and act surprised: "Really? I've found my pricing to be quite competitive in this area."&nbsp; Or, "Really? For (designers, writers, programmers, coaches, consultants, etc.) with my experience and skill-set, my hourly rate is very reasonable. In fact, it's on the low-end." Of course, only say this if it's true.</p> <p>Most of the time, your surprised demeanor and casual confidence will simultaneously disarm prospects and let them know that you're worth your rate.</p> <p><strong>"This bid is too high."</strong></p> <p>When you've provided a bid to a client, you have a bit of wiggle-room.</p> <p>If your customer says that an estimate for service is too high, have an honest chat about pricing structure and your process. Explain what is included in your bid: research, brainstorming, travel, the actual implementation (writing, designing, programming), etc. If, after you explain all the elements of your bid, the client still feels that the bid is too high, you have a few options:</p> <p><strong>1. Ask if they'd be interested in a payment plan.</strong> If you have a normal fee schedule, you might adjust into smaller, more frequent payment increments.</p> <p><strong>2. Take some time to crunch numbers.</strong> Perhaps you can come up with a smaller estimate by doing less research, brainstorming, etc. If you can remove some of your normal procedure and still provide a product of value, go for it. However, always explain to your client that you're making an exception and that you're removing some elements of your process in order to accommodate their budget.</p> <p><strong>3. Not working with the prospect.</strong> If you decide that the client is not worth the trouble or that the estimate accurately reflects the scope of the project, you might choose to part ways. Be professional: let the client know that you're sorry to have missed the opportunity and provide a referral to another service provider who may be able to help.</p> <p>When negotiating estimates, it's important to be as flexible as possible without compromising the value of your service or product.</p> <p><strong>"I've gotten quotes for less."</strong></p> <p>For me, this rebuttal is always tricky: responses can come off as elitist or snobby. (If you respond directly to the challenge, aren't you throwing a fellow business owner under the bus for their shoddy work or too-low prices?)</p> <p>A diplomatic approach works best for me: "That's great you found a freelancer within your budget. If they meet your needs and fit your style, I highly recommend working with them."</p> <p>You can get more specific if your prospect is asking for a service that is outside your specialty zone. For instance, "I'm glad you've found an affordable designer who specializes in print. Please let me know if you need help with website design in the future. I specialize in websites and I'm sure I could provide you a competitive estimate."</p> <p><strong>"I'll decide which project to use after I review several projects."</strong></p> <p>The quote above is just a sneaky way of asking: "Do you do spec work?" All this means is that a client wants you to submit a completed project to compete with other freelancers or service providers. I highly caution against doing this. The potential client is only going to pay you if they choose your project or idea. When it comes down to it, you're playing Russian roulette with your paycheck. When declining, be polite: "Thank you for the opportunity, but my schedule does not allow for spec work at this time. My current contracted clients are my first priority."</p> <p>As business owners, we'll always come across people who want a bargain. When you can address common objections and questions confidently and professionally, you'll make room for the clients who will appreciate and pay what you're worth.</p> 2009-04-20T17:49:11Z -8.82996 496 4245 true 3 24902 polite-comebacks-to-price-hagglers 10 2009-04-21T17:17:50Z 2009-04-21T13:18:10Z

You're worth what you're charging! With these polite comebacks to common price challenges, you'll make room for the clients who respect your rates and value your expertise.

1 2009-04-21T13:18:10Z