In any business, occasionally you will have a potential client tell you that your price is too expensive. First of all, if you are running your business correctly, you undoubtedly will encounter some people who think your price is too expensive. If no one thinks you’re too high, then your price is probably too low and you should be charging more.
As long as you have enough work to keep you busy, you’ll actually want a percentage of potential clients to find your rates expensive. Sometimes you have to read between the lines when a client says you are too expensive. Here are a few ways to handle it when a client says you are too expensive.
- Find out exactly what is ‘too expensive’: Ask for their budget range This is a fast way to determine whether you’re just slightly over budget or hugely different and whether you want to accept or decline this client. You can also take this opportunity to tell them what they can get within their budget. They may want to scale back their efforts at first- and then increase the budget later.
- Educate on the Pricing: Sometimes, a client simply is not up to date on the cost of what you have proposed. You can remind the client that quality work is never inexpensive. Explain that the project might be more time-consuming than they realize- especially if they haven’t done this before. Mention all of the factors that make your work a great value to them.
- Show them the Value: What will they get out of it? For example, if they want to increase sales by $800,000 then they should feel comfortable spending at $80,000 on the promotions to get them there.
Always be prepared for a bit of negotiating. It’s nothing personal and just a part of doing business. Of course, you may decide that the client is not worth convincing if you have to constantly justify your worth. You may be better off standing your ground on your price and passing on the client instead.