Few moments are as energizing in your business as sitting across from a potential client in a meeting that is going well. Your presentation came across smoothly, the client is engaged, they’re ready to buy”¦the only thing left is the price.
You quickly calculate a reasonable price in your head. You know that your competition couldn’t come close to your level of quality – and still you keep your prices in par with theirs.
You tell your prospect your price”¦and the conversation chills. They tell you that they were expecting to pay half of that. What should you do?
Discuss your competition
If what you are offering is genuinely better than the competition, don’t be afraid to highlight your competitors’ weaknesses. If your competitor has a string of bad reviews online, let your prospect know. If your competitors are using outdated tactics, explain that your unique strategies mean you spend their money twice as efficiently. Refer back to your case studies – and point to people or businesses that are testament to your level of skill.
Explain your scarcity
Don’t act too eager to work with a potential client. Tell them that to keep your level of quality high you only work with a limited number of people a month; spots are quickly filling and they have the opportunity to grab one. Demonstrating scarcity is critical to charging your desired rate – everyone wants gold, no one cares much for aluminum.
Be ready to walk away
Be willing to walk away if after a few days your prospect is still hesitant to about the price. The worst clients are the ones who start out worrying about the cost. They will likely never be satisfied with your work, demand instant results, and weasel away at your profit margin every chance they have.
Walking away might seem foolish. Why should you throw away an opportunity to grow your business? Walk away because there are bigger and better fish to fry; one’s that will contribute to the long-term growth of your company and not unbalance your resource allocation to a single small paying customer.
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About The Guest Author: Johann Beishline is the founder & CEO of Lezal Marketing. Follow him on Twitter @LeadersWin.
Johann Beishline: Talking about getting paid what you are worth. Have you read Adrienne Graham’s book, No, You Can’t Pick My Brain. It Costs Too Much! ?
My advice is to avoid desperation. As a sales person, if you are constantly filling your pipeline and have enough customers to work with, you can avoid desperation. Let your product or service sell itself. Emphasize the benefits in what your are offering, create value, and help your potential client see why he MUST choose you over your competition. Above all, never bash your competition. It is okay to highlight the differences in what you are offering. The market worth of your service is what anyone is willing to pay for it, but you must help them see the benefits to justify why it is worth that much. If your product is subpar, there isn’t much selling you can do, you need to take care of your customer and make your products superior.