Through the course of your business, you will meet people not willing to pay what you are charging, even when your pricing is totally fair. Customers have different ideas of what a fair price for a product or service should be. They also have different budgets. Does this mean you should lower your prices just to make a sale? Absolutely not! You should respect your talents, time and expertise and make a respectable profit margin. This brings us to today’s topic – overcoming pricing objections.
If you have the right approach and the right answers, you can easily turn a “no” into a “yes”. Let’s dive deeper into this topic and learn how you can handle and overcome pricing objections.
Should You Discount if Your Price is too High?
We’ve already mentioned you shouldn’t fall for this trap. Using discounts to win new clients may get you new clients, but how smart is this in the long run? Selling your services cheap gives off the impression that the quality of the service is rather low. On the other hand, if you start off this way, there is very little chance you will start making serious profits anytime soon.
Don’t lower your prices just to raise them after a while. Either you won’t ask for a raise at all, or your clients will run away the moment you start negotiating the price.
But what if your clients believe your prices are too high? Agreeing to a lower price can only send one, clear message to the client – you are desperate to win that client. If you go down this route, you should know that it is a journey of no return.
How Do You Respond When a Potential Client Says You are too Expensive?
Do you want to work crazy long hours and still find it hard to make a living? No? That’s what we thought! If you are pricing too low, that means you are afraid of rejection. Hearing multiple clients say you are too expensive may make you want to lower your prices just to make them say “yes”. Now that you know you should never go below your standards, how do you respond to a client who thinks your services are too expensive?
You can let them walk away, which is not fun at all, or you can try using behaviour rewards. Note that you shouldn’t practice this with all of your potential clients, only those who seem like ideal clients.
You can agree upon lowering your price on condition you get something in return. For instance, the client will give you some referrals or they will do part of the work themselves or pay you in advance. This is totally up to you and your preferences.
You can also explain the ‘value’ of the service you are providing. Having their financials in order in a timely manner will allow them to make proactive decisions rather than reactive! Clarify that you go above and beyond the data entry and project your USP. Remember, they are paying for your knowledge and expertise not just your time.
If you are confident about your knowledge and the value you can offer to a client, you will never underprice. Now that you know how to handle clients asking for a lower price, let us ask you one more question.
Do you know what your services are worth? Unfortunately, some bookkeepers have set their prices far below their actual worth. Instead of struggling with hourly rates, check out BookkeeperQuote’s expert software. It tailors your price to individual clients, takes out the guesswork, helps you maximise profits, and brings more value to your clients. Contact us today for more info!