What To Do When The Prospect Tells You “You’re Too Expensive”
Have you ever had a prospective client tell you “you’re too expensive”? Most entrepreneurs will hear this from time time to — we definitely have. So what should you do when this happens, and can you avoid it altogether? That’s exactly what we’re talking about in today’s episode.
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We have seven tips to give you and we will go through why the customer is not always right, how to counter when someone says you’re too expensive, and the best strategy to avoid someone saying this in the first place.
- What does too expensive really mean? Before you start your business it is important to know what other people in your space charge. Your pricing should be based on the value and experience you provide your customer. So when a client comes to you saying you’re too expensive, it is important to figure out if you really are asking too much, or if the client just doesn’t have the money to pay you.
- Explain your fees. Being able to give people a detailed explanation of why your fees are what they are is powerful. Let them know the value that you provide and the reasons why you are worth that much. A lot of times this will clarify things and people will be more willing to pay your fees knowing what they get for the cost. And this shouldn’t be a long, drawn-out thing. Keep it short and simple.
- Downsell. If someone can’t afford your main product or service, offer them something that has a lower price point. For example, in our case as speakers, maybe someone can’t afford to have us come give an hour-long keynote at an in-person event, but we can offer them a seat in an online course, or a podcast sponsorship, or point them to a book we wrote. In fact, if you want to avoid someone telling you that you are too expensive to begin with, try giving people 2–3 options for how to work with you at different price points. Giving people these options can move them from simply a yes or no, to a yes, I want to work with you, but in what way.
- Be careful of discounts. We are both fans of offering discounts from time to time, but you have to be very careful. Make sure you don’t go crazy with this option because it could come back to bite you later on. Once you discount you may not ever be able to charge full price.
- Don’t get defensive or upset when someone tries to negotiate you down. You can’t take it personally when someone tries to negotiate your fees. It has nothing to do with you. People will remember the way you treated them, so always act with integrity and don’t lose your temper. Not every prospect that comes your way is going to be a good fit, and that’s okay.
- Be okay with walking away. If after explaining your fees and value a prospect still isn’t sure, you need to be okay with walking away and realizing it’s not a good fit. Don’t beg people for a sale and don’t undersell yourself. You know what your time and effort are worth, so have faith that another client will come along that is a better fit.
- Backup your fees. You have to be your own best advocate. Backup your fees with beautiful marketing, graphics, media kits, websites, books, social media accounts, etc…Put your best foot forward in every way that you can.
These things have worked for us in building our seven-figure businesses. It can feel scary at times, but you have to believe in yourself and what you have to offer. And if you provide the value that your fees suggest people will come.
Now more than ever, people are moving from full-time employment to entrepreneurship. We are collectively realizing that the only job security that exists is the one that you create for yourself, but how? My wife Blake and I are successful entrepreneurs who both made the transition while we had full-time jobs. You can learn how here.
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