People who say your fees are too high are often just looking for an excuse to avoid doing business with you. But, if you can find a way to deal with these fee-sensitive clients effectively, they may end up being your best clients.
You’ve probably been in this situation at least once before, when a client has asked you if you’d be willing to work on an hourly rate instead of a fixed one. When you tell them that you don’t charge by the hour, they usually try to argue you down.
I had a client who said to me, “Your rates are too expensive.” I told her that I understand what she meant. My rates are too high for her. And when she asked if there was any way she could lower the rate, I told her yes — there are many ways to do that. We went over the process and I explained what she would need to do to achieve that. I also told her I wouldn’t be able to work with her at that low rate she initially proposed as it wouldn’t make sense for my end of the business.
Now let’s talk about dealing with these types of situation. How do you handle clients who feel your fees are too high, or that they don’t like your fee structure?
Establish a price that’s right for you
In some cases, when a customer is thinking about hiring a freelancer, they don’t have any knowledge of the freelancer’s reputation. They don’t know that you’re experienced and skilled. They don’t know that you’re known for being on time and being reliable. They know only that they want your services. So how do you get the job? You ask for a reasonable rate and you tell the client how you can help them and why they should hire you. You don’t have to start at the top, but you do need to establish a price that’s right for clients who think you’re expensive.
The best way to approach this is to first find out about the company’s goals. Are they looking for someone to take over some of the work, or is it something else? You need to figure out the specifics of the job.
It is important that you establish a fair price for your services. In the freelance world, there are lots of freelancers, so you need to set the right price. It’s important to set a reasonable price to entice more clients to hire you. You shouldn’t be too cheap and charge low rates. However, you shouldn’t charge too high a rate. This can deter clients from hiring you. If you are charging an excessive amount, then they may think that you’re overcharging.
Set a “Buy Now” Price
A great way to keep your potential client still interested in you is to show them that what you have to offer is better than what they can get elsewhere. What you can do is make them feel that they’re missing out if they don’t buy from you right now. This is where you use urgency as a tool to drive them into action.
Offers slightly discounted rate. However, mention that this price is only available until tomorrow or the day after. Whichever it is, set a deadline for the discounted rate. You can create a higher sense of urgency by saying that this price is only for now and if another project comes in, you fear that you might not have the capacity to work with them.
Ask For Something Extra
The way that you can make a client that you really want to work with – for portfolio reasons – to agree to the deal is to give them a slightly lower price and request from them something else in return. The best thing is if they are willing to do a video testimonial, or allow you to document the entire process that you can use as part of your marketing.
This is a great idea. You need to understand that if you have the potential client on your portfolio, you will be able to attract more clients. Other potential clients might even end up hiring you because you’ve done work with this client before. If this is the case, you can have an advantage over other firms.
1. Learn how to price your service or product.
2. Understand that your pricing is personal and reflect your values.
3. Know your market and know the competition.
4. Don’t charge less than you think you’re worth.
5. Don’t be afraid to charge more if necessary.
In conclusion, when customers are looking for a solution to their problem, they’re often willing to pay more for the product or service that will solve their problem. But sometimes they get confused by the price. The first thing you need to do is get to the bottom of the customer’s confusion and understand the pain of their problem. If you’re able to get the customer’s full attention, you can then explain why your product or service is better and how it solves their problem. As long as you can answer those questions, they will be happy with your answer. After that, you can begin asking them what they’re willing to pay and what you should charge.
This is an amazing opportunity for you to learn how to set the right foundations for your business. Schedule a free first consultation at https://guidedhustle.com/private-coaching/
Originally published at https://guidedhustle.com on August 4, 2022.