August 31, 2016
How to respond to “You’re The Most Expensive” discount requests
Let’s assume you’ve provided a quote and your contact responds with a variation on one of the following:
- “Your proposal is the most expensive we got but we want to buy from you. What can you do for me XXX?”
- “Company X said they would do it for half your rate!”
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.
Marketing Fail
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.
Something like:
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.
For example:
- “Why not outsource this to a cheaper team overseas?”
- “Have you considered using something off the shelf?”
- “Why not do this project in-house?”
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.
Your Lines
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:
- “If you’re looking for the cheapest option I’m definitely not right for this project.”
- “If price is the only consideration, you should definitely go with one of the other vendors.”
- “I was under the impression that choosing low-cost vendors is what got you in this situation in the first place.”
- “You made it clear that this project is critical to your business. Do you really want to trust it to the lowest bidder?”
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.
Yours,
—J