Captain’s log, stardate 20160831
Sent by Jonathan Stark on August 31st, 2016
Let’s assume you’ve provided a quote and your contact responds with a variation on one of the following:
These sorts of requests fall into the following category:
You’re The Most Expensive - Client explicitly states that they have received lower prices from other vendors.
If you get hit with this one, you need to up your sales and marketing game. Do a better job making it clear in your communications that you are a premium option (i.e., the best, not the cheapest).
You can do this simply by publishing your prices on your website. If you don’t want to publish your prices (or can’t because you only do custom work), you can add some copy to your contact page that indicates the minimum investment that they should be willing to make.
Custom projects start a $20,000 and can go as high as $200,000. Can you presently afford this level of investment? [YES/NO checkbox]
You can further cement your position as the premium option once you have a prospect on the phone by trying to talk them out of working with you.
Assuming they reject all of your suggestions, they will have explained to you (and themselves) exactly why cheaper alternatives are not viable options for them.
Hopefully your improved messaging will result in you never getting this sort of request again. But if you do get it, here are some lines you can use:
Once you deliver your line, they will most likely ask you to justify why they should pay a premium to work with you. Be prepared to differentiate yourself from the cheaper options.
P.S. One of the differentiators I use to justify my premium rates is that my prices are fixed bids, not hourly estimates. This means I make less money the longer a project takes. Clients love this because they always want things done yesterday (and they hate the “meter running” feeling that comes with hourly billing). You can learn more about ditching hourly here -> Hourly Billing Is Nuts
P.P.S. I’m doing a free webcast today (Wed Aug 31) about the mechanics of pricing. There will be a recording available after the event but you need to show up live if you want to ask questions: The Hourly Trap